XChateau Wine Podcast

With 27 years of research on the US wine consumer, the non-profit  Wine Market Council is a critical industry resource. Liz Thach MW, the new President, dives into their most recent research on which wine consumers are buying, why, and how they buy. Members can get even deeper insight and access to the industry’s most robust database on US wine consumers. Detailed Show Notes: Wine Market Council (“WMC”) - non-profit, formed in 1996Mission - provide cutting-edge research on the US wine consumer purchasing habits, trends, and attitudesMembers use WMC data for marketing and brand strategiesUS wine salesFrom 1934 - today - there have been several declines in consumptionThe last decline - 1990s - showed similar factors, increased anti-alcohol groups, large excise taxes; catalysts to growth (French Paradox, introduction of new products - e.g., White Zinfandel, wine spritzers, Merlot getting popular)Growth for 20+ years from the late 1990s, peaking during Covid2022 - decline in volume sales, 2023 - decline in volume (-9%) and $ salesWMC does a benchmark segmentation study of wine consumers every 2 yearsHas done 19 over 27 years, the largest database of wine consumer trendsBoomers - drinking less (61% cutting alcohol, faster than expected)Millennials - finally coming to wine, took until they were in their 30s (have children, bought homes, settled down, more financially stable); spend more on wine (often $20+)Gen Z (oldest is 26) - had high wine adoption initially, but in the last 3 years, it has declined (“cool to be sober”); 9% of Gen Z drinks wine, though only 33% are of legal drinking age; concerned about transparency of products (saw food scares, recalls), climate, and social equityWine drinkers are 60% married, 71% own homes, 53% live in suburbsEthnicity diversification making progressBy 2050, the majority of the US will be non-whiteToday’s wine drinkers are 66% White (vs. 77-78% in the past), 15% Hispanic, 11% Black, and 5% AsianSignificant progress with Blacks and Asians, but less with Hispanics, which are the fastest growing population in the USCeja an example of a successful Hispanic owned winery, links wine and Hispanic cuisine and been successfulOther ways to enhance diversity - ads that look like “us,” diversity in the workforce, pop up events where the consumer is (e.g., a Mexican wine importer did pop-ups at Hispanic events with taco trucks)Premiumization is still happening, people drinking less, but better$20+/bottle drinkers are now ~7-15% of the total US populationYounger people (21-30) purchasing more high-end wineBoomers dropping buying more expensive winesWhere people buy wineSupermarketsWine shopsOnline now 12% vs. 5% pre-Covid29% buy on their phone93% of wine consumers on social media#1 Facebook (Boomers)YouTube - 61% useInstagram - 55%TikTok - 40% (wineries can’t advertise, but influencers can post)X/Twitter - went from #2 to #6Wine apps - 17%2024 trendsAnti-alcohol movement Talking about the benefits of wine (illegal for alcohol brands to discuss health) - WMC launched a social campaign called “Wine is…” (e.g., wine cocktails, family dinners…)Transparency/ingredient labeling (e.g., 50% of Americans believe wine has added sugar)Low / no alcohol movement - 40% of wine drinkers drinking less (of those, 40% drink non-alc spirits/cocktails, 35% NA beer, 34% NA wine)RTDs / single serving sizes Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

Having gotten bitten by the wine bug young and with deep wine retail experience, Devon Magee, founder of Offshore Wines, decided to start a small wine importer. Inspired by Kermit Lynch, Offshore focuses on small, artisanal brands making high quality, yet affordable wines. Devon shares how he bootstrapped the company and is finding his way as an importer. Detailed Show Notes: Background - mostly wine retail, did harvests in France (Vieux Telegraph, Chandon de Brialles in Burgundy - 2012-2014)Inspired by Kermit Lynch, he was interested in writingOffshore Wines PortfolioChristian Knott of Chandon de Brialles started a new project, Domaine Dandelion, and asked him to import them2017 - 1st shipment - 4 cases of Domaine Dandelion, 20 cases of Champagne Charles Dufour15-20 producers nowGoal: find high-quality wines made in an artisanal way from lesser appellations that are “affordable”“Affordable” = $30-100 in US retailStarting an import businessHe did it on his own, with no lawyers~2 months to get a license, ~$1-2k in feesNeed a licensed warehouse to receive wines (uses CA Wine Transport)Self-financed 1st shipmentCash flow is challenging2-3 months for wines to land in warehouse (from France)Restaurants/retailers get 30 days termsPayment to wineries varies - most ~60-day terms from shipment, while others want payment upon shipment or 50/50 terms (upfront and on delivery)Lifestyle is fun, traveling and visiting rural areasChoosing winery partners - a lot is timing, being at the right place, getting to know communities, and very relationship-based; most wineries are referrals from existing relationshipsOffshore differentiation - speaks the winemaker’s language (French, Spanish), worked production, and is building deep personal relationshipsWineries are exclusive to CA, and only market Offshore works, though they sell to a small distributor in COFocus on small producers precludes needing to be in all 50 statesOptimal portfolio size ~25 wineries to be able to respond and represent wineries wellGets wine out for people to taste them, prefers personal connections over social mediaShares other aspects of what people are doing (e.g., got and gave away bags of coffee from a producer experimenting w/ carbonic coffee bean ferments, giving away sweatshirts from Domaine Hausherr with an artistic word game on the back)Devon is the only salesperson now, and he would ideally like 1-2 salespeopleOther salespeople have opened doors for him to help himBuilding small brandsMany people struggle with name pronunciation He tries to share wines, stories, and pictures of brandsHe doesn’t agree with the need for scores and tasting notes; he uses email to share stories, wants to publish a newsletter eventuallyThe new style of wine writing can help small brands - e.g., Alice Feiring, Ray Isle’s new bookAdvice for others - be able to sell the wines Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

As part of the importer series, Yi Xin Ong, Managing Partner of KOT Selections in Singapore, provides an international perspective. From Singapore’s 2-3,000 active importers for the small island to the impact of international media, Yi Xin describes how KOT navigates the importing, distributing, and retailing of its portfolio of winegrowers.  Detailed Show Notes: Background Founded KOT in 2011 - they couldn’t get the wines they were buying in Singapore, three partnersWork w/ 57 winegrowers, mainly in Europe, 6 in the USSingapore wine market (~6M population, ~20% Muslim - don’t drink)No 3-tier system, no gov’t monopolyIt is a pretty open market, like the UKMany players are vertically integrated - import, distribute, retail - with lots of captive distributors and retailersVery low barriers to entry - founded KOT in 2 months for S$200 to get licensing and paperworkHorizontally spread - ~2-3,000 active importers (in 2011, ~700 importers, mainly focused on Australia/NZ with either big brands or high-scoring wines)Two casinos / integrated resorts provided the spark for other wines (e.g., Marina Bay Sands opened in 2011)Generally, 1-1.5 generations behind the UK and US wine marketsTook inspiration from other importers - Kermit Lynch (CA), Louis / Dressner (NY), Yapp Brothers (UK Rhone Specialists) - importing wines others were notYapp - focused on winegrowersDressner - spent a lot of wine visiting growers, good storytellingKermit Lynch - newsletters (1970s) were key to storytelling for the wine growersStorytelling is critical to standing out in a crowded marketSourcing strategy - most wineries they bought from personally (90%) were not represented in SingaporeInformal rule - 5 visits to winegrowers between the three partners before they importBroad portfolios - easier to serve clients and fulfill their needsFocused portfolios - clearer story and differentiationOptimal portfolio size - ~50-70 to give each winegrower ~1 week/year of focusKOT differentiationMarket knowledgeLinks to trade, client baseTrust of the people (have only signed one contract, mainly handshake deals, exclusive relationships) -> been burnt occasionally with generational changeBuild brands in Singapore - a very organic approachGet the right people to taste them - professionals, and influencers / Key Opinion Leaders (“KOL”)Host tastings every year, even for highly allocated wines (e.g., Pierre Gonon)KOLs can drive demandInt’l media have a strong influence - English is the primary languageMore important than local mediaOnly the top few have an impact - The Wine Advocate (Robert Parker), Jancis Robinson (less emphasis on scores, more on editorial content)Robert Parker had a big impact on the local market; a Singaporean bought the company100-point scores can drive sales spikesConsumer data/reviews can start trends, increasingly importantVivino, Wine-Searcher, CellarTracker, Instagram75% wholesale, 25% direct-to-consumer sales (mainly e-commerce)Private clients saw KOT through the pandemicTrade is vital for tourist demandSingaporean wine trendsNew regions increasing, Japanese and Chinese winesValue increasing - ~$20-30 retail, ~$5-10 FOBThe low/no alcohol trend is not a thing yetRose has never been a trend Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

With a portfolio of luxury wineries, including Domaine de la Romanee-Conti and Biondi Santi, Wilson Daniels has developed deep expertise in marketing luxury wines. With allocations, deep tracking of where wines go, and a heavy event schedule, Shannon Coursey, EVP of Sales & Marketing, describes how taking great care of the wines is critical. Detailed Show Notes: Wilson Daniels (“WD”) overviewFounded in 1978, they started as a domestic wine brokerage, In 1979, they were asked to represent Domaine de la Romanee-Conti (DRC) and became an importerRepresents 37 families with ~50 producers, ~⅓ France, ~⅓ Italy, ~⅓ New WorldOwns distribution in 5 states~35 sales managers, sells ~600k cases/yearImporter roleCurate portfolioDistributor management - make sure strategy is executedCreate messaging with the wineriesPricing - for WD, keep consistent around the countryEducationChannel mix - on/off premise, national accounts, chainsWork with pressKeeping wineries top of mind in trade - does a lot of eventsSourcingSources wineries with estate vineyards, some with the ability to scale (~⅓ of the portfolio), look for regions where they will not take away from existing producersAt optimal book size now, additions could be grower Champagne or 1-2 new Burgundy producersGrew portfolio a lot in recent years - ~20/37 families added in last 8 years, ~10 in last 3 years (including Gaja, Faiveley)Distributor managementWith RNDC and Breakthru in ~50% of statesCreate groups within the portfolio to help distributorsManage pricing, inventory, programming (sometimes)Does not allow wine closeouts, prefers to buy backFast Start program - incentives for new placements, not volumeWholesale Manager Bonus - for distribution managers, often trip-basedOther support methods - ask to be on focus, market work, getting the producer in marketMarketing winesCrafting messaging is critical, and some producers already know what they want (e.g., Gaja wants to be known as 4 different wineries)Does a lot of grassroots marketing - events around the country at top restaurants, visibility of on-premise placementsA lot of trips to wineriesIconic brands - taking care of the wine from start to finish, the allocation process is essential (~⅔ of brands are allocated)Lesser known brands - more about visibility, messaging is critical, can target a broader base (e.g., use more social media)Luxury - 3 key segments - sommeliers, collectors, criticsFor larger brands, does some consumer marketing: e.g., Bisol Prosecco - did 15 city tours, wrapped an Alfa Romeo car in Bisol green, did press, consumer, and trade events; went from 7k cases (2015) to 120k cases (2024)Process for building brands in the USCreate messagingEducation - WD wholesale team, WD national team, distributorsPR launch kit and sales kitIdentify channel mix, including target account listEvents (very different for each producer - e.g., vintage tastings for Biondi Santi, Faiveley; Gaja - white launch, Tuscan properties, Sicilian tasting)Re-establishing brands that had poor marketing (e.g., Biondi Santi, Dal Forno)Need to work through inventory in the gray marketDon’t lower prices to match the gray marketMake a splash on new vintage releasesDal Forno - launches in the US 6 months before the rest of the world, helps reduce gray market activityPrivate client group / direct-to-consumer~300 people by invitation onlyExperience-drivenMembers support the entire WD portfolio Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

In part 2 of our series with Nick Ramkowsky, Owner of Vine Connections, Nick describes how he builds brands in the US market, striving to turn “annual” brands into “perennial” ones. Partnering with distributors both directly and working independently with consistency helps create a virtuous cycle of long-term relationships. Nick also covers his interest in sake and how it overlaps with sales strategies for wine.  Detailed Show Notes: Two types of brandsPerennials - brands where accounts grow in value each vintage; very few become thisAnnuals - need to sell the same case to a new account each year; everything starts hereThe goal is to build brands into perennialsGetting to perennials includes having value in the bottle, packaging (VC has three designers on staff), relationships (finding the right spots/customers for brands and supporting the accounts (staff trainings, consumer events)), identifying champions on the distributor sales team, and pressCreating brand value as an importer - consumers believe in the importer’s book through consistent producers and quality across the portfolioConsistency helps develop brandsMarketing strategies to build distributor demandPress (primarily critics)Effective distributor work withs (distributors need confidence importer will support them)Creating credibility in the marketplace (trade events, work withs, samples, incentive/launch programs)Can’t outspend more prominent importers for incentives, need to create unique ones - e.g., one supplier affiliated w/ custom made shirts, created incentive around the shirtsSetting suggested retail price (“SRP”)Through tasting, looking at the competitive set, and where the winery wants to be$1 in home country becomes ~$3 at retail in USSales strategiesVC has ten salespeople across the USDo work withs with distributors, but also on their own to not overwhelm distributor repsPartner with reps, sending recaps for follow-upSake - started in 2002He went to Japan to work in a brewery to study the processHad to make more accessible - standardized back label, 1st to put English names on front labelsThey use the same distribution network as winePlace importance on education; VP of Sake Monica Samuels is a great educatorNow, 20% of the Japanese imported sake marketRecommends drinking sake from a wine glass, at cellar temp, or warmed to order for hot sakeKome website is more focused on the style of sake (e.g., fruity/floral vs. round/rustic) vs. grade now46 prefectures brew sake - lots of expression of placeGluten and sulfite-freeWine importing trends - people drinking less, but better (Gen Z - less alcohol, and non-alc drinks, believes they will look at wine more as they age; value premium products that are authentic, smaller, good stewards of land) Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

After falling in love with wine through a year abroad in Burgundy in high school, Nick Ramkowsky, Owner of Vine Connections, has built a premium national importer of South American wines and sake. Nick discusses the types of wine importers in the US, how he thinks about building a brand portfolio, and the keys to success as an importer in part 1 of this 2-part series.Detailed Show Notes: Vine ConnectionsA national import and marketing company based in CA and has a retail licenseFocus on regions with winemaking history but not globally recognizedStarted as a broker and distributor (when Nick was 25)Worked with Billington Imports and met Laura Catena, went to Argentina, and fell in love with winesEstablished 1st premium portfolio of Argentine wines (1999-2000) - least expensive wine was $24 retail2002 - imported sake2013 - 1st premium Chilean wine portfolioHas wholesalers in all 50 states, including RNDC (#2 in the US), Breakthru (#3), and other smaller ones30 people today, from 2 originallySplit company in 2 - Kome Collective (Japanese), GeoVino (wines)Types of wine importersAll importers are also distributors in their stateSales Geography - can be state, regional, or national; Vine Connections is national for control over brands all the way through, exclusive for all 50 states, contracts w/ producers outline the responsibilities of importer and producerPortfolio Focus - world or specialized; Vine Connections is specialized in S America and sakeRole of importerBring wines in, warehouse, sell to distributors, & work with sales teams to sell to various channels (on-premise, off-premise, chains)Work with press, do consumer events, lots of training and educationSourcing winesLooks at people first, then property, and consistency in product and pricingNew wines don’t cannibalize the current portfolioComplementary driven by a sense of place and identity, even if the same region, varietal, price pointLooking at expanding to more regions to take advantage of the distribution networkOriginally specialized to have more of an identity as an importerOptimal book size - has ~120 SKUs in portfolio vs. ~900 at some importers and ~10,000 for RNDC as a distributor; optimal size varies by business model (e.g., focused on chains vs. independent stores/restaurants)More in not better - high cost to inventory and more challenging to prioritizePricing winesIn general, SRP is fixed, but each state is different (based on freight & tax differences, distributor margins (larger tend to work on lower margins), and retailer margins (some take less margin)Selling winesUsed to self-distribute in CA, now uses wholesalers (couldn’t service all the accounts, wanted to focus on national sales)Distributor salespeople don’t have time to focus on everythingImporter needs to generate interest in brandsKey elements for successFind good partners - share the same philosophy (quality, value, consistency), support each otherVine Connections doesn’t add new wineries often (only one new Chilean winery); only one winery left in 20+ years$1M revenue/employee benchmark for successVine Connections differentiation - good communications, both in transfer and transparency (e.g., sales by state), consider Vine Connections an extension of the winery Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

To give their customers the ability to trade up and a broader selection than what’s inside their 1,900+ grocery stores, Albertsons Companies have launched Vine & Cellar. Curtis Mann, MW, Group VP of Alcohol, discusses the greater selection, wine description and storytelling, and flexibility Albertsons has with Vine & Cellar to complement their in-store offerings. Detailed Show Notes: Curtis’ backgroundWorked at IRI / Circana (database of retail scan data)Worked in retail wine stores and restaurantsWas head of beverages at Raley’s (grocery) before AlbertsonsAlbertsons Companies1,900 stores that sell wineA lot of value wine, some specialty stores (e.g., Pavilions, Hagens) sell fine wineWest Coast - more domestic (~40% import, 60% domestic), East Coast - more importsVine & Cellar (“V&C”) online wine storeWine only now, no beer & spirits yetCA only now will expand to others (e.g., WA, IL)Extension on top of the grocery store websiteHas a larger selection of wines (2,300 items vs. average 800-1,000 at typical stores, up to 1,500 at some stores) - e.g., Super 2nd Bordeaux, allocated CA Pinot NoirWines are only available to ship via UPS (vs. in-store pickup or delivery)Can use the same checkout process for groceries and V&CBenefits for consumers of V&CCurated wine selections that are representative of their regionsBuy groceries and V&C wines and checkout togetherMore flexibility - can do wine dinners, in-store tastings, wine clubsGoals of V&CLet customers continue to explore and trade up on wines and not trade out of AlbertsonsDon’t cannibalize in-store, but more add-on, incremental purchasesCapture a portion of the wine DTC marketOnline vs. in-store buyingMore imported wines onlineBroader selections vs more volume of the same wines in-storeAvg bottle price is $10 higher on V&C than highest in-store~½ V&C customers buying iconic wines (e.g., Silver Oak), ~½ exploring (e.g., Burgundies in the $50-100 range)V&C customer is both existing Albertsons and some new customersYou can put a lot more details/descriptors of wines onlineOnline buys in 6 or 12 packs to economize on shippingMarketing V&CQR codes inside storesVinecellar.comSome ads on the website, V&C wines come up during a search for wines if they are not offered in-storeEvents / PRNapa Safeway has V&C featured wines in-storeSome paid search, Wine-SearcherLoyalty programs - now Albertsons customers get promo codes for V&CWine trends - less high-end wines, people focused on value / high QPR Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

2023 wrap-up for the wine businessTopics we covered in 2023Sustainability (8-part series that had Drew Bledsoe to CEO of Silver Oak David Duncan and across the world from the US to Spain to Bordeaux)State of the Wine Collector (LA, Dallas)Leveraging non-gov’t organizations (VDP, Grand Pagos) to promote wineRevenge travel Post-Covid move back to in-person / offices -> delivery of wine -> reduced visitors to wine country and people buying wine to stock and drink at homeAmericans Took Record-Setting Vacations In Summer Of ‘Revenge Travel’ - 32.8% of households went on vacation (a record since data kept in 2015)Online retailer issues - Underground Cellar (April 2023), SommSelect (July 2022), Winc (Nov 2022, 1 year after going public) all went bankrupt, others struggling back to 2019 or even lower levelsMore missing bottles w/ Sherry Lehman (~Mar - Aug 2023), Chelsea wine storageInflation / economic slowdown globally and impact on wine marketBleak outlook for 2024 as fine wine buyers narrow their focus - Liv-Ex indexes down double digits year to date; “flight to quality” - Bordeaux benefiting, Burgundy, Champagne downInflation is used as the “reason” many wineries increase wine pricesBBC article on wine pricing increasing - glass, labor, fruit - all getting more expensive and wineries increasing price; and burgundy/napa/champagne got very expensive, consumers starting to pull backMany napa wines taking prices up to $300+ (Memento Mori - $225 -> $300)Chinese consumption is as low as 1996 levels, - the peak of 19.6M HL in 2017 to 8.8M HL in 2022 (#8 globally) vs. US in the top slot at 34M HLGlobal health/wellness; Millenial/Gen Z slowing down alcohol consumptionWHO says no alcohol is good for you (released a statement Jan 2023)Gen Z drink 20% less than Mill, who drink less than prior generations - college-age abstainers went from 20% -> 28% in the last 20 years (to 2020) Better non-alc and low-alc alternatives (kombucha, pot, mushrooms, better no/lo options for alcohol)Is wine part of the good life? Wine, particularly fine wine, is used differently than beer & spirits; it is also better from a health perspective The Wine Access interview re-emphasized - the experiences with wineThe Italian lifestyle / holy trinity of the good life - cheese, wine, & bread Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

As the podcast space matures, it becomes a more meaningful channel to market wines to consumers and create new experiences.  3rd time guest Amanda McCrossin, Host of the Wine Access Unfiltered Podcast, and AJ Resnick, CMO of Wine Access, explain their rationale and experiences in launching and building the podcast and associated wine club.  From celebrities crying on the show to creating a 360 experience with their wine club and podcast audio and video, the Unfiltered Podcast continues to build traction, make wine more accessible, and build Wine Access into a loved wine brand. Detailed Show Notes: Wine Access backgroundLaunched in the late ’90s, it hosted wine retail websites and described wines2004 - offered wines on their platformCurate wines (team includes an MS), tell the story behind every wine, excellent customer service, and technology (powers wine clubs like Michelin Guide, Sunset, Decanter, and Williams Sonoma)Goal - to be a loved wine brandWine Access Unfiltered podcastLaunched in 2020A wine podcast w/ conversations around wine w/ wine, but not about wineReleased every other week, 45 min - 1 hour show lengthThey have done podcast ad buys and have seen successFormat - Season 1 - talk about wine stories, mostly with celebritiesSeason 2 - off more value add, more thematic (e.g., wine regions), added a wine club to drink the wines w/ the show (full 360 experience)Has IG (>10,000 followers) and YouTube (>300 subscribers) channelsListener baseThey assumed it would be the same as Wine Access customersThey found it to skew younger and less wine-savvy, but very curiousAnother way to connect with membersTraction>100,000 cumulative downloadsPast episode performance increases with new listenersHolds people’s attention for an extended period of timeMost podcasts fizzle out after five episodesGetting celebrities on the show“Do you want to drink wine with us?” worked during the pandemicThey did a lot of cold calling, worked with a few producersMore prominent celebrities didn’t always have the best performanceBert Kreischer’s episode was very successful; he cried on the show and then mentioned it and FaceTimed Amanda while on 2 Bears, 1 Cave podcastWine ClubFour wines for four episodes, sent every other month, curated by Amanda10% off all Wine Access purchasesIncludes shipping, can add wines w/ free shipping to shipmentSome wines exclusive to the wine clubQ3 2023 - Unfiltered Wine Club had more new members than any other club that Wine Access runsROIThe wine club helps cover the costThe goal is more brand awarenessRetention through connecting w/ members in a different wayContent creation (audio, video) that can be reusedPodcastingSpotify is bringing new energy to the space with a better listening experience (went from 15% -> 30% of Unfiltered listeners)YouTube has a podcast sectionRepurpose clips for social media is a best practice Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

From an outsider's perspective, Jason Wise, director of the SOMM movies and founder of SOMM TV, has been able to find stories in the world of wine that interest a broad audience. To control more of the content pipeline and how the shows are distributed, Jason founded SOMM TV. Using "Somm" as more of a curator, SOMM TV has wine at its core and covers food, travel, and other alcohol, making it appealing to a broad (and younger) audience. Learn more about the business of wine films in this episode of XChateau! Detailed Show Notes: SOMM movie (2012) - Genesis of the movieMade when he was fresh out of film school (where he didn't focus on documentaries)Met Brian McClintic, who asked him to watch their tasting practiceJason found the practice similar to a sporting eventMet Ian Cauble and found his determination to become a Master SommelierThe success of the filmThe obsessive personalities made the filmBuilds to an actual event (the MS exam)The wine industry was ready for something like the movieNot a "wine film," a different way of looking at wineIntroduced a new group of people who can tell you what to drink (vs magazines)Documentaries became popular with NetflixNot made by wine people, the outsider perspective made it enjoyable for outsidersMedia business modelMovies usually have a distributorTheaters are a big marketing arena for wineiTunes - make a % of revenueNetflix - pays the distributor a fixed fee; if put on the 1st page, it can reach millions of people. It often pays based on what it costs to make. They can own rights outright or rent the filmAmazon - get paid 6+ months after it's up, get a tiny cut of incremental revenueYouTube - don't make any money onCreated SommTV to control more steps in the business model - more control of content pipeline, partnerships, and a place to premiere new films (e.g., SOMM 4)Before Covid - events were a big part of the businessMedia platformsHulu - Jason's favorite, takes the biggest swings in contentStars - has the best moviesNetflix - very careful; content is very similar to each other; often licenses something then makes their version if it works (e.g., Uncorked is a similar series to Somm)Cost of making filmsBig range - SOMM 2 ~$100k vs ~$850k for another wine film made by someone elseDocumentaries - can be millions, when there's real music, at least $500kDo not pay people to be in the filmSommTV business modelEmployees on salary, which is unusual in film90% original contentIt started with originals and, now, trying to license other contentFocused on wine, food, and alcohol; food is going to be a big partIt started the streaming service because it's an underserved audience, and wanted to super-serve themContent pipeline - they would ideally love to have new content every dayHundreds of thousands of subscribers (as of Jan 2022) - believes the potential audience is in the millions"Somm" is defined by Jason as someone who curates - wine at the center, but food, travel, etc…surrounding itPricing - $6/month, $50/yearLower cost doesn't necessarily mean more subscribersTechnology - a mix of own-developed and 3rd party apps; the goal is to bring the technology in-houseSommTV subscribersYounger, usually 24-37 years old (~70%), middle classScreenings/events - more varied audience52% male, 48% female - women growing fastKey markets - US largest by far, UK, Brazil, Nordic countries (not allowed in Iran or China) Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

Frustrated by a lack of understanding of consumer taste preferences and a lack of data-driven decision-making about winemaking, Katerina Axelsson, CEO and Co-Founder of Tastry, built an AI and chemical analysis system to solve this. With custom-built algorithms that take chemical analysis and develop flavor profiles and a database of consumer taste preferences that map to the US’s 248M adults, Tastry is paving a new, innovative way to use data to make and market wine.Detailed Show Notes: Tastry was founded around 6 years ago, but 1st 4 were more of an R&D project, officially launched Dec 2021The wine industry is trying to anticipate what consumers wantNew wines have an 85% failure rate in the 1st yearPeople describing flavors in wine doesn’t correlate with if they like itTastry uses AI and Machine Learning with chemical analysis to break down a wine’s flavor2 databases - wine’s flavor profile and consumer taste preferences that are matched togetherWine databaseAnalyze 10,000’s of wines/yearChemical analysis is done in-house on standardized equipment but with proprietary softwareThe Top 2,000 wines based on IRI annually are analyzed to build a baseline data set as wineries’ samples are proprietaryConsumer taste databaseDid double-blind tasting panels, asking consumers if they both liked or did not like wines; the negative preference is important for the flavor profile buildingConsumers also asked analog questions that became the Recommended by Tastry quizUse algorithms to relate data and predict preferences for the rest of the population (248M taste profiles)Can now predict individual consumer taste profiles if they take the Tasty quiz with 93% accuracy in how they would rate the winePalates are very unique; the largest cohort is only 13 peopleDemographics don’t show a lot of differences in taste preferencesCustomers - work with >100 wineries, 22 of 25 largest wineriesWinemaker use casesComputational Blending - uses simulation to match profiles from different blends and adjustments; winemakers set parameters on what they are trying to achieveWinery had to switch from barrels to adjustments to 5x production and used blending to get a similar profileNavigating smoke taint (3k tons, $10M worth of fruit) - came back with a recipe that solved the issueMaintaining year-over-year consistencyWinery marketing use casesRecommended by Tastry plug-in for wine clubsLook more at finished wines and at competitive sets and overlap of consumer preferencesRetailer use casesRecommender helps get more niche brands discoveredThere is more traction for e-retailers now; pilots with big box retailersDec 2023 - Tastrt will announce a scalable way to access a broad # of winesStrong ROI - 44-215x, benefits mainly cost savings, increased revenueBusiness model - Vertical SaaS with consumption-based modelSubscription to dashboardLab analysis of samples provides ~$3,000 worth of analysis for a $370 list priceCompublend - per simulation chargeAccess to competitive data sets from the Top 2,000 winesPricing is the same for winemakers, marketing, and retailersRaised ~$10M in funding from individuals, early stage VC’s, and strategic investors (wine, AI, retail) Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

As the first iconic wine of Chile, Don Melchor has paved a path for many others to follow. Enrique Tirado, CEO and Technical Director, explains the vision behind Don Melchor, how it became an instant icon of Chile, and how it stays on top of its game.  Detailed Show Notes: Enrique’s background - studied agronomy and enology, joined Don Melchor in 1993, became winemaker in 1997, in 2011, Don Melchor Winery was created and became CEODon Melchor overview:One specific vineyard in Puente Alto on the north bank of the Maipo River at the foot of the Andes Mountains1st vintage - 1987127ha, 151 parcelsMainly Cabernet SauvignonUses ~60-70% of the vineyard for Don Melchor wine~12-15k cases of 1 wine produced each year“One unique history, one terroir, one wine” is the ethos behind Don MelchorThe remainder of the fruit goes to other wines in the Concho y Toro portfolio (e.g., Marquis de Casa Concha)Becoming an iconic Chilean wineIt was 1st to create an “icon” wine in ChileIt was the most expensive Chilean wine on initial release1988, 2nd vintage, was in the Top 100 of Wine Spectator - the only Chilean wine and a big deal at the time which established Don Melchor’s statusA string of critical praise - WS Top 100 9x, 3x in the Top 10, 100 points from James Suckling, Best of the Best from Robb ReportExport 90% of the wine to 70 countries; main markets include the US, Brazil, ChinaBecoming iconic todayIt is easier for other Chilean wines as Chile’s reputation is more establishedThe country’s image is critical and requires collaboration with other producersConsistency of quality is critical for both winemaking and the commercial sideAdd value to the wine world - e.g., come from a unique place, have a unique expression and personalityMay create a 2nd wine in the futureStaying on topRequires a singular focus on quality and consistencyNeed to focus on communication and optimizing the best routes to marketWine critics are still important, and they make consumer communication fasterCustomized routes to market by country (e.g., US, Brazil) and have offices in different countriesSold by the Concha y Toro sales forceHave a specific team for premium winesNot on La Place de Bordeaux  Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

As the #2 global wines & spirits company, Pernod Ricard seriously emphasizes promoting its brands globally. One method of doing this is its global network of Brand Ambassadors (“BA”). Fabyola Soares, Global Senior Wine Education Manager at Martell Mumm Perrier-Jouët, describes her team of 30 Brand Ambassadors, their mission, their role, and what traits make them great.  Detailed Show Notes: Fabyola's background - studied to be a sommelier in Brazil, joined Pernod Ricard in 2013 as 1st Champagne Ambassador in Brazil, now oversees global education program and Champagne & Provence Brand Ambassadors (“BA”)Pernod Ricard (“PR”) is #2 worldwide in wines & spirits, >200 premium brands (e.g., Absolut Vodka, GH Mumm, Perrier-Jouët)Pernod Ricard has a range of Brand Ambassador programsPrograms overseen by brand ownerThe oldest program is for Jameson Irish Whisky, founded in 1991 with 80 BAs in 15 markets worldwideBA programs don’t span multiple categories but could represent similar ones, e.g., 2 Champagne housesThe scope varies by market - e.g., Hong Kong BA represents Champagnes and Provence, France - different BAs for each house, US - 1 Sr BA for ChampagneChampagne & Provence Brand Ambassador program30 BAs, 15 international marketsBrand Ambassador rolesTargets trade and passionate consumersMission - “to win hearts and minds”Engage in brand education, trade activation, business development, interact with media/journalists, organize cellar master visits, and teach wine certification programsCollaborates with marketing and commercial teamsDon’t sell wine - commercial teams (Private Client Directors, Prestige Sales Teams) responsible for sales across the portfolioCareer paths - can be promoted to senior BA or join global market and strategy team (7 former BAs work there)Rare wine offers - mostly sold via auctions (e.g., 1874 Perrier-Jouët sold at Christie’s in 2021 for a record £42,875) or private client directorsKey Brand Ambassador traitsNeed to be credible and respected by experts - focus on formal wine training, launched WSET in-house and developed Champagne Specialist Course with the Wine Scholar GuildMust embody house essence and be an effective spokesperson4 key characteristics PR recruits for - passion for wine, strong communications skills, adaptability/resilience, and spontaneous charismaMust be able to personalize interactions and customize messaging to meet customers’ interestsPrior relationships are a plus, depending on the level being recruited forBuilding relationshipsPR founder often said, “Make a new friend every day” - key for BAsCommercial teams will make introductions to local customersConnect with as many people as possible, often surprised by who brings in new business opportunitiesBenefits of relationships with BAs - e.g., invitations to curated events and experiences such as the Belle Époque Society by Perrier-JouëtSocial media is more important in some markets (e.g., Brazil) than othersPR also has Lifestyle Ambassadors (part of the Marketing team) who have social media as a KPI Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

With the aim of safeguarding the wines of personality from special vineyards (or “pagos”) from across Spain, the Grandes Pagos de España is a private group of wineries on the forefront of Spanish wine. President María del Yerro, of Alonso del Yerro, and VP Enrique Valero, CEO of Abadía Retuerta, discuss the history, objectives, how to join, and their new Terroir Workshop Series.  Detailed Show Notes: María’s background - was a translator, husband took over family winery in Rioja, 2002 - bought a 56ha vineyard and started Alonso del YerroEnrique’s background - worked at Diageo and Gonzales Byass, became CEO of Abadía RetuertaGrandes Pagos de España (“GPE”) history2000 - 5 wineries established Grand Pagos de Castilla2003 - included other wineries from Spain and renamed to GPE35 wineries, all single vineyardsPago is defined like “terroir”, a vineyard with different characteristicsCommon Goal: produce exceptional wines that reflect unique terroirInspired by VDP and French concept of Grand Cru, but adapted to Spanish contextGoals & Objectives of GPEPromote and safeguard “diversity and personality” of winesFoster research and innovationConduct educational and promotional activitiesCriteria for joiningMost wineries apply to be a memberCriteria - single vineyard, 100% estate fruit, min 5 years of internationally recognized quality, must pass internal tasting committee that assesses the personality of the vineyardMost vineyards ~50-75haSome wineries may produce wines that are not Grand PagosMember benefits and requirementsFees based on quota system by # of bottles produced (3 levels - <40k, 40-150k, >150k bottles), no winery is >500k bottlesNetworking w/ other wineries; e.g. - winemakers meet 2x / year to share learningsPromotion of wines domestically & internationally (e.g. - wine fairs, education)No logo on labelPriority marketsSpain is the primary market4 international focuses - USA (include for broader influence of press and blogs), Mexico, UK, SwitzerlandGPE wines at least 4-5x more expensive than avg price of Spanish wine (~$40-300/bottle in the US)Wine tourism program - many GPE wineries will showcase other GPE wineries in their tastingsKPIs for GPE include # of people at events, PR/comms results, results of last 10 years of new applicant tastingsMarketing GPEBuilding CRM of trade / sommeliers from tastings to keep in touchPartner w/ wine influencers, somms, other associationsHighest impact initiatives: US - big tastings; Spain - tastings w/ sommsLaunching a new Terroir Workshop SeriesMain push for the next 3-5 yearsGlobal education program for concept of pagos and 35 GPE wineriesStarting in US, Mexico3 brand ambassadors chosen and trained - help bring a 3rd party voice and local perspective on GPEPartnered w/ Gregory + Vine - helped clarify messaging and identified brand ambassadorsDesigned primarily for wine tradeNext priorities for GPEClimate changeGlobal competition - need to maintain a high reputationSustainability and social responsibility Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

Having existed through the glory and the doldrums of German wine, the VDP, the association of top wine growers in Germany, has set out to re-establish German wine as one of the finest in the world. With 20 years under its belt, the Grosses Gewachs (“GG”) system has elevated the status of dry German wines in a short time. Theresa Olkus, Managing Director, and Steffen Christmann, President, discuss the history, goals, and role of the VDP and how the GG classification is bringing quality back to dry German wine. Detailed Show Notes: Verband Deutscher Prädikats- und Qualitätsweingüter (“VDP”)“P” standards for quality, those looking to produce top wines from top vineyardsThe goal is to bring the global recognition of German wines back to when the wines were considered some of the best in the world201 members (2023), up from 160 members (1990)10 regional associationsVDP historyStarted end of 19th centuryA movement to counter the industrial winemaking trendCreated quality requirements (e.g. - estate bottling, wine was sold in auction by the barrel and bottled elsewhere; no additions except sulfur, sugar was added before)Post WWI/WWII - cheap, sweet wines became popularGerman Wine Law of 1971 - created quality classification based on must weights, varietal agnostic, leading to consumer confusionThe late 70s/early 80s - German wine quality sank (yields too high), and the law created consumer label confusion, leading to VDP revamp, focus on vineyard sitesJoining the VDP1990-2023 - 130 new members, 1-2 new members/yearMust fulfill criteria, blind tasting, vineyard, and cellar inspectionYou can’t apply or buy a membership; a region must invite a wineryBenefits for VDP membersKnowledge sharing Leveraging the VDP brand (eagle logo) - an international sign of qualityVDP events and marketingExporting expertise - 27% of VDP wines exportedLeaving the VDP1-2 members/year leaveMost coached to leaveMostly leave post generational change - don’t want to follow VDP rules, quality not at the top levelDry German winesTraditional style before 1900Germans drink as much dry as anywhere else in the world, and the reputation for sweet wines is an international perspectiveHistorically - 2-3% potential abv difference between entry-level and best wines. Today, due to climate change, the sugar levels are the same; only the yields and quality of site create differences~60-70% of VDP members don’t make sweet wines, Mosel/Nahe most make sweet, Rheinghau ~20-30% do sweetGrosses Gewächs (“GG”)2002 - implemented in all regions, started w/ Rheingau 1994/5, Pfalz 1996Created positive brand for dry German wines - increase in the average price of GG wines - 2002 - €16, 2023 - €40 (range from €25-150+)German market response was positive, creating pride in German winesUK pushback - writers thought dry German wines were too sour and lacked quality; last to adopt the new style, only in the last 5 yearsScandinavia - a hot spot for German wineElements for GG success - wineries can only make 1 GG wine from 1 Grosses Lage site; wines have gotten betterSignificant markets for GG - used to be Northern Europe, Asia (China, S Korea, Thailand, Singapore)Africa/India/S America - not strong for German winesMore than Riesling - Pinot Noir, Pinot Blanc, SilvanerThe next priorities for VDPRenewing German Wine Law, potentially moving VDP classification into lawSustainability/climate change Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

As the wine director and partner of the Lettuce Entertain You restaurant group, Richard Hanauer oversees ~100 restaurants' wine programs. Seeing beverage sales grow from single digits to ~20% of sales, Richard discusses the role beverage plays in restaurants, sommeliers, the elements of good wine programs, and his newest wine country themed concept, Oakville Grill & Cellar. Detailed Show Notes: Lettuce Entertain You ("LEY")~100 restaurants in Chicago/IL, CA, NV, FL, TX, VA, DCPartitions of different culinary groupsBeverage impact on sales - can be 0% - 50% of salesFine dining and wine sales used to have a positive correlationMore casual concepts w/high-end beverage programs (e.g., luxury whiskey w/ casual BBQ)LEY - Wine was single digit of sales, now high teens-20% over the last 20 yearsThe volume of sales driven through by the glass ("BTG") programs (e.g., RPM Seafood sells 4-5x Pinot Grigio vs. Sancerre, which is 2x the price)Wine program drives return visits vs. initial visits - people come back for the person who recommended the bottleDefinition of a good wine programUsed to be verticals of great traditional producersNow, more about how the wine program fits into the restaurant (e.g., Piedmont wines w/ Piedmont food)Need good stemware; not great stemwareWines at the right temperature and match the menuRole of the SommelierOperations - wine binning/storage, ordering, tasting, building wine menusWhen not involved in wine, they should be "hospitalians," helping with everything elseBest somms build relationships with wineries (get access to unique wines) and guests (getting them into the right bottle, not the most expensive -> brings customers back)Average fine dining ratios - 24 tables, 1 somm per 12 tablesSomm turnoverPre-Covid - average tenure 18 monthsRe-training takes 6-12 monthsLEY - tries to retain employees, treats them well w/ 401k, benefits, opportunities to grow career w/in LEYRestaurant pricingRent is the most significant expense -> increases COGS for everything, including wineFood/cocktail ingredients are blended together, but wine is not, making pricing a more significant issueGoal - keep COGS down while holding price (sometimes achieved through relationship w/ wineries)Try to get less available wines - have less price transparencyMarkups lower on higher-end wines - standard markups would make the wines unsellableOakville Grill & Cellar - opened April 2023CA wine area themed restaurantNapa inspiration - "Never pretentious, never formal…very comfortable, pleasurable, elevated service & quality of food, rarely decor"The entire wine program is from CACellar Door - tasting studio w/in Oakville Grill6 person suitePartners w/ different winery every monthRe-creates the winery tasting list down to vintage and wine pricingGets training from the wineryGuests can sign up for winery, take home wine~500 guests/month capacity (4 seatings/night, 5 days/week)Winery requirements: right pricing (not low or high), interesting tasting list, pedigree, make sense w/Chicago's seasonality, open to all of CAAlso, BTG in Oakville Grill and usually on the wine list before and afterTrends for RestaurantsAuthenticity - e.g., Aglianico w/ Neapolitan pizzaWine getting more expensive -> The cost of building a cellar is higher, which leads to more focused wine lists Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

In a valley of ever-increasing prices, Malek Amrani of The Vice, is trying to bring value and discovery to Napa.  Producing 18 varietals from 16 sub-regions, The Vice showcases the full spectrum of Napa Valley at $29 a bottle.  Malek is “going against the grain” in many ways - focusing on value, discovery, and underserved markets to build The Vice brand for the long run.  Detailed Show Notes: “The Vice” named after Malek’s main vice of wineFocused on value and discovery of Napa ValleyProduction27k cases total~65% house tier, ~30% single vineyard tier (~20 wines/year), ~5% ultra-premium#1 SKU is House Napa Cab - ~11k casesThey make 18 varietals, from 14-16 sub-regions w/in Napa, a little bit of Russian River Pinot and ChardonnaySources both fruit and bulk wineCost mitigation measuresSecure better pricing through pre-paying for grapesBeing proactive - purchasing fruit from southern Napa vineyards in 2020 that weren’t impacted by fires, talked to 12-15 glass distributors to mitigate the 200-300% price increasesFocused on the wholesale channel (~80% of sales)Spends ~75% of the time outside Napa working marketsIn 2020, traveled every month except April working w/ retailers -> 100% success rate, added 400 retailers in NYCFL/TX buy more single vineyard wines; NY/NE - very House tier driven, CA/CO - good mixFL - a red wine state (driven by Boomers), NY - big in orange wine, nearly outsold House Cab in spring 2023Customer demographicsEqual split - Baby Boomers, Gen X, Millennials / GenZOrange wine (~3,500 cases) - 75% Millennials / GenZ, ~25% Gen XSingle vineyard Cabs - ~85% Baby Boomers & Gen X, Millennials focused on lower price pointsAppellations important primarily to Boomers who grew up with Napa becoming famous, Gen X sees Napa as a symbol of status, Millennials/GenZ appellation less critical, more price-drivenBelieves Napa will remain important, driven by tourism - 4M visitors/yearOrange vs. RoséSwapped production of rosé wine for orange wineBelieves rosé hit the ceiling in 2019 - rose a more social drink, also very vintage driven with closeouts on prior vintages damaging brandsSpirits vs. wine marketingSpirits has lots of product innovation, e.g., many flavors of vodka -> led to The Vice producing many different varietals and Napa sub-regionsSpirits spend millions on advertising -> likely would not work for wine; better for the brand to be built account by account w/ gatekeepersConsumer awareness of The Vice2020/2021 - spent heavily on Google, FB/IG ads, had to shift when Sept 2021 privacy laws changedAwareness from a lot of referrals and through retail placementsSome social media, in-person visits, and press/media - ratings are still importantPair wine w/ other vices - e.g., cannabis, candy, ice creamThinks about pairing w/ the senses - e.g., vision (most important), hearing, smell (linked to memory and emotion) - instrumental hip hop, sex toys for a bachelorette partyWorks under targeted regions - e.g., Staten Island and the Bronx retailersLikes to go against the grain - be more value-oriented vs. higher end Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

Coming from a long career in technology, Kia Behnia, Founder of Neotempo Wines, was galvanized by the 2017 Napa fires to create a more sustainable path.  This started in the vineyard, where he’s utilizing technology and leveraging real-time data to improve quality and decrease cost.  Kia maps opportunities he sees in weeding, irrigation, mildew prevention, & automated crop evaluation as part of the foundation of a new “Smart Farm.”  Beyond the vineyard, Kia has redesigned what sustainable packaging means for wine for Neotempo to address the most significant shortfalls of the industry today.  Detailed Show Notes: Neotempo overviewReplanted vineyard (Kiatra), sold fruit, and now starting a winery2017 Napa fires - nearly lost property, vineyards acted as a fire break, became the catalyst to focus on sustainability leveraging tech and innovationCreating a brand for modern times, responsible and sustainableLaunching Fall 2023 w/ Kiatra Cab Sauv, ~$250/btlWe will roll out less expensive wines in the futureTech in the vineyardCan help solve the labor shortage (cost of labor in Napa up 38% in last two years)Large opportunities - weeding, irrigation, mildew prevention, automated crop evaluationThe use of data in the vineyard is low; data is available but not integratedVineyard Tech examples: 1) VineView - scans the vineyard to monitor vigor2) Phytech - monitors soil temps for irrigation; installed 30 sensors across 4 acres / 4,000 vines; measure the stress level of vines to inform watering vs. scheduled wateringUsed 25% less waterAble to do pre-watering for upcoming heat stress events (in a morning of high heat, 3-hour events) -> only lost 5% of the crop in 2022 vs. much more at other vineyardsGets real-time data at 3ft and 1ft under the soil and at canopy levelExtending to misters in 2023 to control temp and hydration more3) Crop Evaluations - establish the health of the vineyard at individual vine levelMapped and graded each vine 0-6 (0=blank, 1=rootstock only, 2=dead vine…6=healthy vine)Graded during the 7 stages of the growing cycle, including 1 week before harvest -> helps determine the replanting scheduleIt also uses grape samples and lab analysis (phenolics) as inputsExported all data into the analytics platform to do more reporting and analysisNo vineyard farming platform yet, mainly just products and featuresROI of vineyard tech - only invests in positive NPV projectsThe cost of farming went slightly upBelieves innovation will reduce labor requirementsWill create new capabilities - e.g., disease preventionChallenges to moving forwardLack of entrepreneurship culture in farmingLack of fundingLack of openness of farmers to adopt new technologiesNeotempo packaging - building architecture for sustainable 750ml wine bottleDesigned own lightweight, high-end bottle (550g, 40% lighter than alternatives, 100% recycled glass)Temp-controlled styrofoam alternative, no plastic - every component recyclable or compostable Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

Continuing our two-part episode, William Kelley, Deputy Editor of The Wine Advocate, expounds on the evolution of the business elements of Bordeaux. From La Place de Bordeaux to wine critics' score compression, Williams shares his view on how these institutions are changing and evolving their place in Bordeaux and how that impacts big and small chateaux. Detailed Show Notes: La Place de BordeauxLatour's leaving the en primeur system, but not La Place, did not have a meaningful impact, outside of when the wine is delivered, and did not tempt anyone else to leave en primeur or La PlaceFocused on the Top ~50-150 Bordeaux winesNow represents several non-Bordeaux wines, giving a bit more glamor for negociants to sellMore consolidation is happening in the negociant spaceNegociants now do not have the time nor capital to care about "petite" chateauxSeveral business models emerging, including high margin or high turnover with less inventory keptNot a great way to build durable customers (e.g., may sell in Korea one year and Costco in Wisconsin the next)Petite chateaux - need to differentiate and find direct distribution to be successfulImplications of health trends, consumers drinking lessWine with great personality continues to benefitBulk wines, lower-end wines struggling (e.g., lower-end Bordeaux wines, petite chateaux)Wine CriticsScores are getting inflated and compressed - lots of new critics are coming around and pushing scores upWilliam believes a more credible review is more worthwhile than high scores on their ownE.g., Burgundy doesn't get high scores, yet sells very wellWilliam publishes en primeur scores before the 1st release, therefore can't tell if they have any impact on pricingNext for BordeauxThe 2019 vintage had lots of good deals with Covid impacts and price increases of Burgundy, making people interested in Bordeaux againThe region needs to get people back to Bordeaux who have given up on it Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.

Deputy Editor of The Wine Advocate, William Kelley, who recently took over reviewing Bordeaux, as well as Burgundy and Champagne, amongst others, and former guest on E62 (Evolution of the Wine Critic) and E68 (Burgundy), takes a deep dive into the current state of Bordeaux in this two-part episode.  First, William tackles the history of Bordeaux and how it achieved greatness as one of the top wine regions globally to its recent decline relative to Burgundy.  Detailed Show Notes: Bordeaux was William’s 1st love of wine, part of its charm being its everywhere and always accessible relative to Burgundy’s scarcityThe Rise of BordeauxFrance’s most successful “commercial” wine - Bordeaux is a trading port city on the Atlantic, commerce is key to its identityWine was mostly an export product vs Burgundy was drank mostly by nobility, was also harder to travelRobert Parker was a big supporter of Bordeaux vs. Burgundy, which was less of a focusBordeaux’s downfallLost commercial influence over the past 20 yearsConversation of wine has been around “terroir” and the Burgundian modelAggressive pricing (particularly of 2010 en primeur campaign) also drove away many traditional customers - many wines still not worth what they were sold for en primeur from the 2009 and 2010 vintage campaignsWorries that 2022 may have a similar fateBordeaux strategiesSome are trying to replicate Bordeaux scarcity (produce less Grand Vin, more 2nd / 3rd wines) - the region/producer may be too big for this strategy to workTrying to copy other successful wine region styles (e.g., Napa, Super Tuscans; Int’l Sauvignon Blancs for whites)William believes the best path is to keep what’s unique about the region but improve quality to make wines more approachable (e.g., more precise block harvesting, canopy management, etc.)There’s an overreliance on vintage for Bordeaux; many great wines are made in lesser vintagesWinemaking trendsSince the 1982 vintage, new prosperity led chateaux to invest in new wineries, the focus was in the cellarRecently, the push has been for vineyard improvements, promoting soil health and rooting systems, canopy management, and rootstocks and clones, though these take generations to implementSales focusSalespeople in Bordeaux are not winemakers vs. Burgundy, where they are vigneronsCritics often taste at negociants, not at wineriesWilliam was one of the 1st critics to walk the 1st growth vineyards in decadesLa Place de BordeauxSuitable for big chateaux w/ pre-existing reputations, not small onesPetite chateaux - struggling and hard to surviveM&A - can increase top chateaux production, especially of 2nd wines, where they can often get 2-3x the price of former wines Get access to library episodes Hosted on Acast. See acast.com/privacy for more information.