Time to ditch the bottle?

My brother used to live in Sweden and when, ten years ago, I saw and heard about the Systembolaget stores I recoiled at the regulation and perceived lack of choice offered by the system.

Last week, I was back in Stockholm to meet with our new distributors and as part of the learning process, we visited a flagship store to assess the opportunities and challenges. I have to say that in general I was impressed. Pricing was not as high as anticipated, the choice was extensive, imaginatively ranged and inclusive of a great many big names and ultra premium selections.

The biggest difference of course is in the balance of formats that wine is sold in. Bag in box accounts for 60% in Sweden! But to call some of the formats "bag in box" is to do them an injustice as the innovation and creativity far outweighs anything that we see here in the UK.

In past blog posts, I have raised the issue of the lack of imagination in terms of packaging in the UK as being at the heart of our retail woes - what other industry uses essentially the same packaging to sell entry level products and luxury products? Whether our wine is £4 or £40 we package it in a 75cl glass bottle and expect the consumer to decipher whether the gloss of the label is authentic or little more than lipstick on a pig.

I'm with other commentators who have suggested that we really do need to encourage a move to alternative packages for everyday wine, not only for the opportunity it would give all of us to motivate trading up but also for environmental reasons.

Memorable Tales of Food & Wine

Gastronomica

by Alliance Wine

“Memorable Tales of Food & Wine”

The link between our sense of smell and our memory is incredibly powerful and the ability to re-call events and emotions as a result of smelling something familiar, even if not consciously committed to memory, is common to us all.

Proust’s famous piece on the evocative abilities of tea and madeleines, the haunting, sinister attraction of aroma in the novel “Perfume” or the more populist recollections of Will Smith in “Summertime” (or should that be Jazzy Jeff and the Fresh Prince? " Remember how the smell of a girl brings back nostalgia")) all indicate that whether we know it or not, our sense of smell and memory are inextricably linked.

In gastronomy, those associated with molecular gastronomy in particular have re-awakened a link between taste, aroma and memory in a way that is perhaps more conscious than ever before but is more thoughtful, effective and enjoyable than ever. One only needs to look at the enjoyment to be gleaned from Heston’s Victorian feasts to realise that food (and of course wine) has the power to do far more than satiate.

It is however both an underdeveloped research subject and an under-utilised tool by those in the wine industry – and particularly those whose job it is to enlighten and engage the consumer. When debates rage on about how we should engage the consumer or indeed whether the consumer needs to be engaged at all, are we perhaps missing the oldest trick in the book when it comes to marketing? In telling the stories that bring wine to life, could we be more aware of the power of smell and its ability to touch and to evoke emotions far more powerful than simplistic price led mechanics will ever be?

Gastronomica by Alliance Wine is our 2012 portfolio tasting – but it is more than that. Involving stories from our producers of people and meals long gone (but fondly remembered) as well as the inspirational food moments that our staff have enjoyed, we will relate the stories, smells and tastes that bring the subject of wine to life. Dishes from winemaker’s recollections will be re-invented and paired with memorable wines to produce a tasting that highlights the strengths of Alliance’s portfolio but also the different perspectives that we bring to the industry.

For more information on the tastings to be held in London and Edinburgh, please contact Laura Boyce or Christine Allen. laura.boyce@alliancewine.co.uk

christine.allen@alliancewine.co.uk

For further discussions on food, wine, memory and marketing, please contact Giles Cooke MW giles.cooke@alliancewine.co.uk

A Matter of Taste

One of the great joys of the wine business is the network of friends and colleagues that one develops - the feedback and perspectives that they can give, on your own business, on their own businesses and on the wider wine market - are just so valuable.

Yesterday was a day spent with wine trade friends both old and new and it was fascinating and comforting to hear that the current challenges of the market are not unique to the UK. Conversations moved from the logistics  challenges of the small distributor through to the global economy but perhaps the most interesting discussion revolved around something much more difficult to put your finger on.

A day rarely goes by without debate over the wine industry's lack of ability to engage the consumer consistently in a fashion that drives loyalty and willingness to experiment and premiumise. Whilst some commentators contest that this stems from a lack of real interest from the trade in terms of hearing what the consumer wants, that is not a view that I believe rings true. I'm beginning to think that the difficulty in engaging with wine by those who drink it on a more casual basis, is down to something much more fundamental.

Imagine sitting down for the evening to watch a bit of tv and finding yourself drawn to the almost obligatory food programme on at prime time. However, far from the content of the programme being engaging, interactive and distracting, the content of the programme was made up of "stories" about 10 different breeds of cattle and the different feeds on which they were nurtured. How interested would you be?

Then think about whether, in most people's view, there is much difference in the importance attached to the purchase of wine and the importance attached to the purchase of beef? For many people, both are staple items in the weekly grocery shop and therefore why should we think that anyone would be interested in exploring, or being educated about, the minutiae of wine anymore than we would be interested in the minutiae of cattle rearing?

Whilst I certainly don't pretend to have all the answers, I do believe that we have to find a new way of engaging the consumer and it all comes down to a matter of taste. Without wishing to give too much away, our tastings next year will focus on how we all interact with wine and draw on research about how our senses are hard wired and consequently our ability to relate our experience of different sensations varies greatly dependent on whether we see, hear taste or smell them. Intriguingly, whilst smell (the most important sense for us wine enthusiasts) is one of the most evocative senses, it is also the most difficult to accurately relate to others without simile. In the past, the obscurity of the language used to describe these similes has been criticised but is this missing the point? Perhaps it is time that we need to find more effective ways of not only engaging all of the senses but building on them to create vivid pictures in the eyes of the consumer that can be accurately expressed and result in far more effective emotional connections.

Refreshing Rioja

With the red harvest well under-way in even the most extreme of Riojan vineyards, the omens for a good quality, lower yielding harvest look promising thanks to a long period of drought and warm, clear harvesting conditions. With all of the recent stats on Spanish wine exports looking very healthy, it would appear to be a good time to be a producer in the region. However, this simplistic judgement ignores an emerging polarisation between those willing to exploit the traditional quality system and those committed to making genuinely special wine on a sustainable level. Rioja's quality grading system - Joven, Crianza, Reserva and Gran Reserva - is, once you have aged the wine for the required time period, entirely self governing. That is to say that the quality of the wine put into this system, and the age and the quality of the oak used, plays no part in the eventual quality grading. Many traditional regions of the world have seen an exodus of quality orientated players from the established quality grading system when faced by regulations that encourage mediocrity but thus far, Rioja is not one of them. However, a growing number of producers are voicing concerns that the system is broken.

Perhaps one of the most high profile critics of a system that, during the 2010 vintage, encouraged large brands to push grape prices as little as 40 euro cents per kilo, is Telmo Rodriguez. Telmo's low key return to the family's Remelluri estate last year has been followed by a period of reflection on where to take the property and its wines and further news will be forthcoming soon. However, it is already clear that the compromises that the system allows are not for Telmo and the sense of frustration that the Rioja system could in anyway be seen as equivalent of the Bordeaux classification is palpable. Eschewing the current vogue for Tempranillo dominated plantings, trellised vines and filling out of wines with bought in fruit, Telmo's focus on bush vine Garnacha, entirely estate grown fruit and sensitive use of oak are sure to redefine the quality and style of this most atmospheric of estates. What will be interesting to see is quite how far Telmo will be prepared to go in terms of relying on the quality of the estate rather than traditional terms such as Reserva and Gran Reserva.

 15 minutes down the road but a world away in terms of style and approach, Luis Canas are also redefining and enlivening the wines of Rioja. Well known for producing the tour de force that is Hiru 3 Racimos, as well as the perennially crowd pleasing Reserva de la Familia, the wine that stands out from the crowd at the moment, paradoxically, is the 2004 Gran Reserva. Both in the UK and in Spain, the Gran Reserva category has virtually died. Clearly illustrating the region's commitment to a system that promotes mediocrity, once proud Gran Reserva's became dried out, shadows of the fruit that once was there. Many winery's Gran Reservas were just more evolved versions of their reserva. Juan Luis Canas' commitment to viticulture and grape selection means that every wine they produce has its own individual personality and no one wine is just an older version of its sibling. The result is one of the best ranges in the region and, in the 2004 Gran Reserva, the most convincing argument for the category one could find.

The Canas range, though modern, is rooted in tradition and, to a certain degree, follows the accepted norms for Rioja labelling. However, when it came to creating a winery dedicated to his mother, Canas has stepped a little further from tradition. Amaren wines do include an exceptional Reserva (one that won 4 trophies at the IWC this year) but the rule breaking Angeles de Amaren, a Tempranillo Graciano, has no age classification on it despite spending more time in oak than the minimum for Reserva. Interesting to note that Canas' new venture in Ribera del Duero, Dominio de Cair, will also not use the traditional system and will not have an age classification on the label.

Though these are but two wineries in an enormously diverse region, their reaction to a system that relies on the quality of the past, not the present, is one that is sure to find more followers as the commoditisation of aged Riojas forces growers to accept unsustainable prices. The popularity of Rioja in the UK especially, ensures that the current regime is not likely to change anytime soon but for those in the know, the traditional ageing classifications are not the sole quality cue anymore.

Redefining Value

The relationship between value and price is at best uncertain when it comes to wine.

The past proliferation of so-called half price offers, bogofs and multibuys obscures objective value to such an extent that recent research suggests that although shoppers may feel an overall “glow” of good value having visited a multiple grocer, few can tell you exactly how much they paid for their wine. Furthermore, recent on-trade research highlighted the shaky relationship between price and value by proving that if the same wine in the same outlet was priced at three different levels, consumers bought more of it at the highest price.

So, what are we to make of the oft repeated notion that value means economy and that economy is good for the consumer? Is this the same consumer that does not know what true value is? The same consumer that would prefer to pay more rather than less for the same wine in a restaurant? The same consumer whose notion of value in wine has been so manipulated and mangled by commoditisation that it is no wonder that so many people feel disenchanted and confused by the wine trade?

It doesn’t have to be this way. Even during the depths of the recession, businesses that have been built upon foundations of trust, quality and real value have prospered. Is it now time for a more general reassessment of what value means when it comes to wine? Does the wine industry need to re-set its values?

I believe that it does. Let’s start by breaking the misguided ideology that value means economy. As anyone in the trade knows, the heavy burden of taxation means that wine is very rarely good value below £5 and there is a better correlation between price and quality between £7 and £15 than at any other price points. Could we therefore not focus our “value” propositions a little more ambitiously?

Then perhaps we could move away from the notion that cheap is good for the consumer. Most consumers would be horrified to know that much wine being sold as “value” is being bought at a price that is below a sustainable level for the grower. Whilst minimum pricing legislation now seems unavoidable for some parts of the country, perhaps the wider issue of the long term viability of many wine growing regions could be helped within the UK market by a charter to not buy below agreed sustainable prices and work hard to market the true value of fairness.

A tough challenge to meet perhaps but unless some redefining of what determines true value takes place no end of innovations and customer targeting is going to help us.

Giles Cooke on Wine: The No Thank You Economy

Giles Cooke on Wine: The No Thank You Economy

The No Thank You Economy

Gary Vaynerchuck's entertaining and thought provoking book entitled the Thank You Economy is certainly of the current zeitgeist. The book is at one end of the social media spectrum - the end that chooses not to question the return on investment of Social Media, taking it for granted in the same way that few would question the return on investment of your mum. More analytical commentators on social media such as Dan Zarella choose to measure the performance of all key indicators in a bid to demonstrate the impact of social media in a way hitherto neglected.

However, reading Vaynerchuck's work, compelling as it is, I wondered whether caring for our clients is really at the heart of some businesses' (or indeed industries')problems.

Alliance Wine is a business that has cared for its clients from day one and whilst the company has grown significantly, this has never changed. Directors still drop the odd case off for a desperate restaurateur on a Friday evening and no customer dissatisfaction goes unanswered or neglected. And we are not alone - whilst the wine industry is not guilty of being overly innovative, it does generally care for the people within it and for its consumers. A lack of caring just isn't the issue...

Indeed, somewhere else in Vaynerchuck's book lies the clue to some of the UK industry's current problems - think about the title. More often than not, when we think about "thank you" we think about the word "yes" and herein lies the rub.

We are an industry that say "yes thank you" far too often and it is to our detriment. Due to a fragmented, highly competitive supply base that sells to a consolidated, all powerful retail culture, the wine industry has become scared of saying no to deals that simply do not stack up.

At London Wine Trade Fair this year, a conversation with a leading Australian winemaker was enlightening. UK buyers have got used to being all powerful on their trips to an oversupplied, ailing Australian wine market and almost without exception, the answer has been yes to any vaguely reasonable offer to buy large quantities of wine at below cost prices. However, this particular winemaker, having been approached by a buyer for one of the big UK retailers had the audacity to not only refuse a visit but to say that they were not interested in supplying. The bemused buyer, when on Australian soil, called again but was told the same thing - not interested, no thank you.

This is a vital step - the producer may well have had some wine to sell but not at any cost and it is only by more people doing this that we will change both the way that the buyers approach the product but also how the consumers are catered for.

The Australian winemaker was not the only one talking about "No Thank You" at the London fair - there was a general feeling that something has to change, we need to be in a strong enough position to turn away business that will ultimately damage the industry.

Elsewhere in the UK trade, the position is similar, though not on quite the same scale. Within the on-trade in the UK, the legal system is regularly abused by unscrupulous operators who open and close limited companies at the drop of a hat - killing off small suppliers indiscriminantly. Numerous are the cases where an operator, already in a voluntary arrangement, will be offered further credit by suppliers desperate to take advantage of the situation. We need to learn to say "No Thank You"

In Paul Henry's recent blog on the New Currency, he talks about how, in the new economy, instinct will be more important than learning but perhaps the truth lies somewhere inbetween. Most of us know when we do a bad deal, one that is for the short term, one that may damage our future. So, we should learn from our mistakes and use that instinct to be more discerning and when faced with the lure of the short term over the long term, politely say "No Thank You"