Great Headlines: THE SUBTERRANEAN HORROR!

I'm a sucker for great headlines. What writer isn't? And most readers appreciate them too. So when I got this email from Mr LoneHat ( John Thomas, from JJ Cedar Company), who could resist opening it? I'd like to think that John was listening to my brief "how to do better PR" presentation to the El Dorado Wine Grape Growers Association last week, but I think he's just got a natural talent... and I was compelled to read the whole HORROR story! You can too...and thanks, John.

The Subterranean Horror Popillia japonica

Adults surfacing in June/July

Adult Popilliajaponica (Japanese Beetle)



The adult beetles feed on the foliage and fruits of more than 250 kindsof plants, but grape is one of the preferred hosts. The larvae areC-shaped grubs found in the soil, and are serious pests of grass roots.


PCO Choice kills Japanese Beetles andits Larvae. PCO Choice kills the adult insect. The biosolvent influenced cedar oil will dissolve insect egg and larvae by eroding theexoskeleton and cuticle, promoting rapid dehydration. Egg-layer cycles arefurther interrupted by pheromone interference with the insect’soctopamine neuro receptors, and the next generation of arthropod is therebyeliminated.

Because this pest has one generation each year, it may be possible toeradicate them from your vineyards. Creating a 15ft boundary around thevineyard can help stop this subterranean destroyer from re-entering yourplanted areas.

PCO Choice concentrate

For more information contact: jthomas (at) jjcedar.com or visit www.jjcedar.com

What's Up in Iowa? How to do a Business Plan for a Winery? Ask Michael White!

I like to read about Michael White's choices of "Neeto-Keeno WWW Stuff."  It is so refreshing!  Because...don't we all just get too darn much email?  Dozens of newsletters, press releases, wine club blitzes, specials, deals, new lots of this, old vintages of that?  Still, the one communication I look forward to every week -- and get this, I live and work in California! -- is the newsletter from Michael White, ag extension agent in Iowa.  I learn something from every issue.  Can't say that about everything that comes to my in-box... What makes Mike's newsletter different is that this guy really LOVES what he does.  And it shows.



He's the go-to man
for winebiz in Iowa:
Michael L. White



Last fall I spent a fascinating 10 minutes watching a home-made netting machine move down the vineyard rows and listened to the inventor talk about that.  Okay, I'm a nerd.  I'm also a former ag extension agent myself, so, I enjoy this stuff.  And if you are in the wine business, you probably secretly enjoy it too even though it doesn't make great dinner conversation.  At least, not for every dinner party group. 

I got to be on Mike's list when I went to a seminar in Des Moines a few years ago.  He's smart, no-nonsense and absolutely dedicated to the wine industry.  The newsletter is called Wine Grower News, and it emanates from the Midwest Grape and Wine Industry Institute that's part of the University of Iowa ag extension program.  So I've  cut-and-pasted it below, altho moving it from pdf to blog format is 'way too much work, so read as far as you want and then... quit.   In case you want to subscribe, here's how:  send an email to Mike at mlwhite@iastate.edu     You will not regret it.

AND, I also learned from Mike's efforts that it is possible to do a business plan for a winery without spending a fortune. Here's where you can get " Eleven Free Online Winery Business Plans to Check Out." CLICK






Wine-Grower-News #166 May 13, 2011

Midwest Grape & Wine Industry Institute: http://www.extension.iastate.edu/Wine

Information in this issue includes:

• 2011 IWGA Conference Presentations now available Online 4 members|
• Iowa Wineries Do Well at Tasters Guild International in Michigan
• IL Legislature Considers Cutting Viticulture, Enology & Tourism Funding
• 5-21, Effective Vineyard Spraying Workshop – Ames, IA (a few openings left)\
• 6-(7 & 8), Clark Smith's popular "Fundamentals of Wine Chemistry" at ISU
• 6-18, Winemaking Tips & Techniques – Carbondale, IL
• Notable Quotables
• Marketing Tidbits
• Show n Tell (Red Dog Vineyards & Nursery)
• Articles of Interest
• Videos of Interest
• Neeto-Keeno WWW Stuff
• Calendar of Events

2011 IWGA Conference Presentations now available Online 4 members

The conference presentations from the March 18 &19, 2011 Iowa Wine Growers Conference
have now been posted Online at http://iowawinegrowers.org/ While there, check
out the new web page designs. These presentations are available only to dues paying members.

A username and password will be needed. Please contact the IWGA office at 515.262.8323 or 800.383.1682 if you have any questions.

Iowa Wineries Do Well at Tasters Guild International in Michigan

TASTERS GUILD is a nationwide society of wine and food enthusiasts that was established in 1987. It consists of over 40 active chapters throughout the country that bring together consumers, wine, food and the wine and food service industries.

Tasters Guild conducts an Annual International Wine Judging each spring. The Tasters Guild International wine competition that is held in Grand Rapids, Michigan is considered to be one of the top wine competitions in the Nation. Toward the end of summer they also coordinate our Annual Convention & Consumer Wine Judging for members. The results of both events are reported in the Guild's official publication, the TASTERS GUILD JOURNAL, as well as other national periodicals.

Below shows a list of the Iowa wineries who won awards at this spring’s competition. Several wineries from our neighboring states also won awards at this event: IL - 2, KS – 1, MN – 1, MO – 5, NE – 3, SD – 1 and WI – 4. The full list of results can be found here: http://www.tastersguild.com/

Iowa Wineries at 2011 Tasters Guild International and their awards:

Ackerman Winery Blackberry 2010 Gold

Ackerman Winery Red Raspberry 2010 Gold

Ackerman Winery Cranberry 2010 Silver

Breezy Hills Vineyard Frontenac Rose 2009 Bronze

Breezy Hills Vineyard White St. Croix 2010 Bronze

Breezy Hills Vineyard Sassy Girl 2010 Gold

Breezy Hills Vineyard Cabana Boy 2010 Silver

Breezy Hills Vineyard Edelweiss 2010 Silver

Eagle City Winery Apple 2010 Bronze

Eagle City Winery Black Currant 2010 Bronze

Eagle City Winery Cranberry 2010 Gold

Eagles Landing Winery Blues Fest (Blueberry) 2010 Double Gold

Eagles Landing Winery Oktoberfest (Edelweiss) 2009 Gold

Eagles Landing Winery Summer Crush (Frontenac Gris) 2010 Gold

Eagles Landing Winery Campfire Hootch (Mixed Berry) 2010 Silver

Eagles Landing Winery Serenity (Rapsberry Dessert) 2010 Silver

Eagles Landing Winery Frog Hollow (Marechal Foch) 2009 Bronze

Prairie Moon Winery Blushing Moon 2010 Bronze

Prairie Moon Winery Honeymoon 2010 Silver

Prairie Moon Winery Vidal Blanc I.W. 2007 Silver

Wide River Winery Harvest Hurrah 2010 Bronze

Wide River Winery Ms Behavin 2010 Silver

Wide River Winery Ms D’Meanor White 2010 Silver

IL Legislature Considers Cutting Viticulture, Enology & Tourism Funding

5-13-11 “Dear Members

We could really use your help in contacting legislators in your area to ask them to support the House of Representative’s version (H.B.124) of the Department of Ag and DCEO budgets which include the important funding for our viticulturists and enologist and also marketing and tourism programs that provide jobs and bring in tourism dollars to the state.

The Senate’s current budget proposal has eliminated the funding for our viticulture specialists, enologist, and certain tourism programs. Therefore, we encourage them to support the House budget or reinstate funding for our industry in the Senate’s budget.

For your legislator’s contact information, please visit the State Board of Elections website at www.elections.il.gov and go to legislator lookup by address.

Thanks so much for your continued support!

Megan Pressnall, Illinois Grape Growers & Vintners Association
megan@illinoiswine.com or (217) 726-8518

Save the date for two great upcoming Illinois wine festivals! The Art of Illinois Wine Festival will be held May 21 & 22 in downtown Springfield and the Two Rivers Wine and Jazz Festival is being held in Ottawa on June 4 & 5. For more information, please visit www.illinoiswine.com.

5-21, Effective Vineyard Spraying Workshop – Ames, IA

(A few openings left!)

When: 9a.m. to 4:30 p.m., Saturday, May 21st, 2011

(Registration desk opens at 8:30 a.m.)

Who: Dr. Andrew Landers of Cornell University who directs the Pesticide Application Technology Program at the State Agricultural Experiment Station in Geneva, NY.  Dr. Landers is the author of “Effective Vineyard Spraying – A Practical Guide for Growers”, 262 pp. Aug. 2010.

Where: ISU Horticulture Research Station, 55519 170th St. Ames IA 50010 (515-232-4786). 3 miles north of Ames on Hwy 69, turn east on 170th St. about 1.5 miles.

Cost: $60 each. (Maximum of 30 participants)

Participants are highly encouraged to bring the book, Effective Vineyard Spraying to this workshop. 
Copies of this book will be available for $44 at the workshop if ordered at pre-registration. This is a20%
discount from the regular price.

Pre-registration and payment required: Limited to the first 30 registration’s received.

Contact: Mike White to register here: mlwhite@iastate.edu    or 515-681-7286 

Learn: New spraying techniques
How to improve spray deposition
How to improve application timeliness
How to reduce off-target drift
How to modernize existing equipment
The latest developments in sprayer design
How one can reduce pesticide use by 30-40%

Sponsored by: ISU – Midwest Grape & Wine Industry Institute

ISU – Pest Management and the Environment

6-(7 & 8), Clark Smith's popular "Fundamentals of Wine Chemistry" at ISU
When: 9 a.m. to 5 p.m., Tuesday & Wednesday June 7 & 8, 2011 Where: 1951 Food Sciences Building, Iowa State University, Ames, IA Who: Clark Smith, Winemaker, founder of the wine technology firm Vinovation, and adjunct Professor at CSU Fresno, CA. Clark writes “The Postmodern Winemaker," a monthly column for Wines and Vines Magazine and directs the Best-of Appellation panel for AppellationAmerica.com. "Smith teaches at Napa Valley College, UC Davis Extension, and CSU Fresno. - David Darlington, Wine and Spirits Magazine Cost: $95 per person. Additional registrants from same company $75 per person. Includes  a 450 page comprehensive handout, lunch plus morning and afternoon refreshments at breaks each day. Bonus: Mini workshop on pairing wine with music. Sponsored by: The Midwest Grape & Wine Industry Institute is sponsoring this event to make  it accessible to all wine professionals in the area. The normal cost of this workshop is $350. Online Registration and Details: http://www.extension.iastate.edu/Wine/Events.htm (Space is limited. Registration by June 3 required.)

6-18, Winemaking Tips & Techniques – Carbondale, IL
When: 10 a.m to 4 p.m., Saturday June 18, 2011
Where: Kite Hill Vineyards, Carbondale, IL
Who: Domenic Carisetti, is a Winemaker and Winemaking Instructor in New York with over thirty years of professional experience.
Cost: $40 per person, $35 for VESTA students, lunch included
Registration Deadline: June 10, 2011


Notable Quotables

1. “almost two thirds of U.S. smartphone owners perceived their phone to be obsolete now or will be

obsolete before their contract runs out.”

From: Study Finds Consumers Stuck with Obsolete Cell Phones, 4-25-11 - Retrevo Blog

2. “Prior to Prohibition, Missouri was the second-largest wine-producing state in the nation. Now

reclaiming its rightful place as a driving force in viticulture and winemaking, an explosion of

growth is helping advance our quality and recognition. The future of Missouri Wine is very

bright.”

From: Chris West in “The Smell of Bottling”, 5-8-11 – Winedustry

(Chris & wife Jen own and operate West Winery in Macon, MO)

Marketing Tidbits

1.” Let's start with the statistics that almost seem crazy: barcode scanning grew by a whopping 4549

percent in Q1 of this year, when compared to Q1 of the year before.”

From: QR Codes Gain Critical Mass, 5-13-11 – ClickZ

2. “Long thought of as the Baby Boomer search engine, the yellow pages industry has been

redefining itself in the digital age”……. As the original search engine, the yellow pages have

remained a reliable source for local information, with restaurants, physicians and auto repair

shops comprising 22.3% of all print usage. Although resistant at first, the report finds the industry

is continuing to evolve onto a digital platform, with restaurants, local government offices and food

products embodying 11.2% of all online usage.”……. “it is one of the few segments of the

advertising media market that is not suffering a market share decline, but, despite some ups and

downs over the past decade, actually holding the same share of 7.6% in 2000 and 2011."

From: Yellow Pages Market Forcast 2011, 4-7-11 – Simba Information

Show n Tell (Red Dog Vineyards & Nursery)

On Thursday this week I drove up to Johnston, Iowa (northwest side of Des Moines) to visit Jerry Dietz and his son Alex as they were working in their grape greenhouse. Jerry owns and operates Red Dog Vineyards & Grapevine Nursery. The vineyard and nursery is named after their 11 year old Irish Setter dog. Jerry told me that the dog controls the whole family! They are one of three grapevine nurseries doing business in Iowa. The other two are: Penoach Winery, Vineyard & Nursery owned by Stan & Joanie Olson of Adel, Iowa and Iowa Grape Vines Winery, Juicery & Nursery owned by Jim and Mary Kay Sorensen of Preston, Iowa.

Jerry opened Red Dog Vineyards & Grapevine Nursery in 2009 and the business has been growing. He also has 8 acres located at the intersection of Hwy 30 and Hwy 14 in Marshalltown, Iowa just to the east of McDonald's. This is where they are growing bare root vines of many different varieties that will be trained onto several different trellis systems. Jerry also uses tissue culture propagation methods which he presently does in his basement at home. He would later like to use his tissue culture techniques and sterile growing facilities to provide certified virus free stock to his customers. His near term goal is to move the entire operation into a larger facility on the outskirts of Des Moines, Iowa.

What makes Red Dog Vineyards and Grapevine Nursery somewhat unique to most other grapevine nurseries in the U.S. is not only their emphasis on growing the new cultivars available through Cornell University and the University of Minnesota breeding program, but also growing many unknown cultivars available through the USDA ARS Plant Genetics Research Unit at Geneva, NY. Jerry is looking at these unknown cultivars for both fruit production and their use as grafted rootstock material for cold climate cultivars. Many of these unknown cultivars originated from Russia,

Canada and Eastern Europe.

My first contact with Jerry came back in 2007 when he sent some soil samples into Iowa State University for vineyard fertilizer and lime recommendations. He was just thinking about starting a vineyard at that time. Jerry has come a long way since then. He and his son Alex both seem to have the passion and the plan to grow Red Dog Vineyards and Nursery into a successful and unique operation. I have included some pictures of my visit below:

(Above) Jerry Dietz(L) and son Alex(R) holding a flat of Teleka 5C, a cultivar from Hungary that is often used as a rootstock due to its adaptability to clay and clay loam soils. 5-12-11

(photo) Jerry pointed out the “ONE” Baltica grape plant he received from the USDA ARS Plant Genetics Research Unit at Geneva, NY. He will use tissue culture techniques to propagate this one stick into many. 5-12-11 
(photo) Red Dog Vineyards & Nursery uses cardboard planting containers to grow their rooted grape plants. These containers are produced and sold by Monarch Manufacturing of Salida, CO. The pot and plant can be planted directly into the vineyard. 5-12-11

(photo) Jerry Dietz shows the bag of PRO-MIX plant medium he uses in his plant containers. PRO-MIX is produced and sold by Premier Tech Horticulture. 5-12-11

(photo) Full length view of the Red Dog grapevine nursery. 5-12-11

(photo) Jerry Dietz holding a tray of rooted Regent grape plants.  5-12-11


Articles of Interest

1. Big Changes Coming to South Dakota‟s Extension. 4-18-11 – Dakota Farmer:

http://dakotafarmer.com/story.aspx/big/changes/coming/to/south/dakota/extension/9/48529

2. Researchers Develop Stink Bug Monitoring Tool, 5-4-11 – Growing Produce:

http://www.growingproduce.com/news/?storyid=5481

3. Agrotourism Project Gains National Attention, 5-6-11 - Journal Standard, Freeport, IL

(Learn about “Discover the Flavors of Jo Daviess County” & Massbach Ridge Winery.)

4. Pre-bloom zinc sprays can improve fruit set, 5-6-11 – UC Davis and UC County Extension Viticulture blog

5. The Big Picture: 10 Dynamic Forces Impacting the Consumer Wine World Pt. 1 of 2, 5-7-11 
Forbes Blog by Jeff Lefevere): http://blogs.forbes.com/jefflefevere/2011/05/07/21/

6. Petrol smell in Riesling „a mistake‟: Chapoutier, 5-10-11 – Decanter.com   http://www.decanter.com/news/wine-news/525144/petrol-smell-in-riesling-a-mistake-chapoutier

7. Wisconsin distillery aims to reuse liquor bottles, 5-7-11 – Milwaukee & Journal Sentinel:
http://www.westport-news.com/news/article/Wisconsin-distillery-aims-to-reuse-liquor-bottles-1368819.php

8. B.C. Winery Ferments Water, 5-12-11 – Wines & Vines Magazine:

Videos of Interest

1. Check out the new WWW site and videos at Tucker’s Walk Vineyard & Winery in Garretson, SD:

http://tuckerswalk.com/

Neeto-Keeno WWW Stuff

1. Great Lakes Distilling cocktail database: http://www.greatlakesdistillery.com/cocktails.htm

2. Corky‟s of Napa Valley Gives Corks New Life, 5-10-11 – Napa Valley Register:

http://napavalleyregister.com/business/article_f222c9da-7b84-11e0-a024-001cc4c002e0.html

3. 2000 year old wine unearthed in Henan province, 5-10-11 - People’s Dailey Online (English

version) : http://vinoenology.com/wine-news/read/2308/

Calendar of Events:

5-(20-21), WineMaker Magazine Conference, Fess Parker DoubleTree Resort – Santa Barbara, CA.

Full details and registration: http://www.winemakermag.com/conference

5-21, 9 a.m. to 4:30 p.m. Airblast Sprayer Workshop with Dr. Andrew Landers author of Effective Vineyard Spraying at the ISU Horticulture Research Station, Ames, IA. $60 each & $44 for the book. Max of 30 participants. Contact: Mike White at mlwhite@iastate.edu

6-4, 4-8 p.m., 5th Annual Swine Festival – where cork meets pork – Des Moines Area Community College (DMACC) Details: http://www.swinefestival.com/

6-(4+5), Kothe Distilling Summer Workshop, Kothe Distilling Technologies, Chicago, IL.

Details: : http://www.kothe-distilling.com/en/component/content/article/15-workshop-information/75-kothe-summer-2011-workshop

6-7, Viticulture Field Day, Missouri Grape Growers Assn. (MGGA) & the Institute for Continental Climate Viticulture & Enology (ICCVE). Details here: http://www.missourigrapegrowers.org/

6-(7 & 8), Clark Smith's popular "Fundamentals of Wine Chemistry" short course, 1951 Food Sciences Building, Iowa State University, Ames, 6-3 registration deadline. Details: http://www.extension.iastate.edu/Wine/Events.htm

6-(9+10), Comprehensive Elderberry Workshop & Farm Tour, American Legion Hall and Eridu Farms in Hartsburg, MO. Details at http://www.riverhillsharvest.com or call 573-424-9693

6-18, Winemaking Tips & Techniques, Kite Hill Vineyards, Carbondale, IL. VESTA, Rend Lake Community College and Illinois Grape Growers & Vintners Assn. Contact: Rachel Cristaudo, IL VESTA Coordinator Ph: 618) 437-5321 Ext. 1724 or cristaudor@rlc.edu

6-(20-24), American Society for Enology & Viticulture – Portola Hotel & Monterey Conference

Center, Monterey, CA: http://asev.org/national-conference-2011/,

7-(11-14), 36th American Society of Enology & Viticulture - Eastern Section Conference, 1 Sheraton Baltimore North Hotel Baltimore, Maryland. Details: http://www.asev-es.org/

8-24, Seedless Table Grape & Winegrape Field Day, Univ. of WI – Madison, West Madison Ag Rearch Station, Questions: Please check blog at: www.universitydisplaygardens.com for more information e-mail Judy at jreithrozell@wisc.edu or Rebecca at harbut@wisc.edu.

Post your “FREE” classified ads here at „Winedustry”

http://www.winedustry.com/classifieds.php

Past issues archived as html and/or pdf here:

http://www.extension.iastate.edu/Wine/Resources/winegrowernews.htm

10

Total Circulation of 1,350+ recipients in AZ, CA, CO, FL, OH, IA, IN, IL, KS, KY, MI, MN, MO, MS, MT, NC, ND, NE, NH, NV, NY, OK, OR, PA, SD, VA, VT, WA, WA DC, WI, Australia, Canada, Israel, Norway & Turkey

Michael L. White,

ISU Extension Viticulture Specialist

909 East 2nd Ave. Suite E, Indianola, IA 50125-2892

ph: 515-961-6237, fax: 6017, cell: 515-681-7286

mlwhite@iastate.edu

Iowa State University does not discriminate on the basis of race, color, age, religion, national origin, sexual orientation, gender identity, genetic information, sex, marital status, disability, or status as a U.S. veteran. Inquiries can be directed to the Director of Equal Opportunity and Compliance, 3280 Beardshear Hall, (515) 294-7612.

To Subscribe to this FREE e-mail newsletter, just include the word “subscribe” in the Subject Line. To Unsubscribe Please reply with the word "unsubscribe" in the Subject Line.

A little vineyard humor!  (cartoon)

Why Tasting Rooms should Charge Fees

I was visiting a small winery in the Sierra Foothills. I've come to appreciate the passion these winemakers put into their wines, and the sometimes-shoestring nature of their operations. As I pulled into the parking lot, a tour bus was pulling out.

"That was almost a waste of time," John the winemaker said. " Six passengers, one bottle of wine, one pair of earrings."

I did a quick calculation. Maybe a $30 sale. For which he'd poured 24 tastes, and received no revenue. And not even a fare-the-well for use of the picnic grounds and the multiple toilet flushes in the loo at 3400 feet when water is so doggone scarce up there.

What's wrong with this picture?

Another winery owner I'd interviewed last week was Evelyn Reyes-Umaña of Bodega del Sur Winery in Murphys. She'd boldly imposed a $3 tasting fee and has been happy with the results. "That cut down on the 21-year-old-birthday-party nightmare, and that's been great," Evelyn said.

Over the past few months, I've conducted in-depth interviews with more than 20 Mountain Wineries in the Sierra and Its Foothills, for the book I'm writing. About one-fourth charge some small fee for tasting. Three-fourths don't. They all should. I plan to speak up on this topic to the remaining wineries on my interview schedule.

Here's one reason why: when I left the discouraged winemaker and went to downtown Placerville, I stopped at Starbucks and ordered a latte. $3.45 and I didn't give a second's consideration before I forked that over.

What's wrong with THAT picture? Absolutely nothing. Looks like a sound business model to me.

~ ~ ~ ~ ~ ~
© 2010 Barbara Keck

Watch for my forthcoming book: "Mountain Wineries of the Sierra and Its Foothills". Publication date Spring 2011, Wine Appreciation Guild Publishing.

>>Send an email to Barbara (at) winebizpr.com if you want to be put on the notification list
when it is published

Producing New Wine Drinkers: Hats Off to Gary V

I'm not a true Vayniac; I don't follow Gary V every day, but he's done something we all need to get better at: producing new wine drinkers.

A friend sent me this link (click here) to the short bio/interview in the New York Times: It is well worth a read.

Not long ago, I was sitting at a luncheon with 22 great minds in the wine industry, and this fervor to produce new wine drinkers was sadly, and noticeably, missing. I'd asked, "Who at this table owns a millennial?" I was greeted with quizzical looks.

I confess, I no longer own a millennial. My boys went off to college, graduated, got jobs, girlfriends and wives (in that order, and sequentially) and are now producing the next generation of wine drinkers. But I do hold loose title to one millennial, my 22-year-old niece Margaret, and we keep in touch via text messaging (she never answers her iPhone anymore and doesn't own a landline phone and rarely deigns to answer email). Margaret is the real thing.

So... Margaret is sitting at the bar in a restaurant and her date goes to the bathroom. My text alert bings, and it says, "Quick Aunt Babs, date in loo, steak + calamari coming, what wine 2 get?"

I do my bit. Value wines for this group. But soon they'll be moving to $15 a bottle consistently in the campus liquor store, and she's been known to use my brother's credit card for $25 a bottle and more.

I just KNOW that somewhere out there, a smart person is going to create an iPhone app for this generation of new wine drinkers, kind of like a Ghostbuster-Who-Ya-Gonna-Call and then the texts will no longer bing on my phone and some edgey guy like Gary V is gonna get really rich.

And more power to that person!

p.s. Gary I love you, and who wouldn't?

The Best and Brightest Inquiring Minds... Want to Know

Once in a while, we're privy to the thought processes of a well-trained brain trust in the wine industry. Slap me down if you must, but I think that a peek inside the Harvard MBA thought process is highly instructive, especially when it comes to articulating what a collective of experienced executives in the wine industry consider to be the biggest challenges today.

On September 8 at Vineyard 29 in St Helena, owned by Harvard MBA Chuck McGinn (Class of 1978), 20 graduates from 1961 onward, met to discuss the following Business Challenges. Pulled together by Scott Becker of Global Wine Partners, the preparations included polling the group for the pressing questions of today... and tomorrow.

The resulting questions are below. In the next few posts, I'll give you a glimpse into the thought processes. The questions are tough, there may be no unequivocal answers, but there will be provoking opinions. Just like being back in the classrooms of Aldrich Hall! (Interested in the thinking of the person who posed a particular question? SEND ME A COMMENT WITH YOUR RETURN E-MAIL, and I will ask them directly)

1) The wine world is experiencing significant uncertainty about future growth due to deterioration in the macroeconomic fundamentals and a deleveraging credit environment. When will the market recover, what will the future growth environment look like, and how can prudent wine companies manage their way to future success?

2) Is the statement that more bottles of wine are being sold this year over last year true and that it is just the price that has dropped? If so, is this a permanent reduction in the value consumers place on wine or only a temporary aspect of the current economy?

3) When the crisis is over, will the consumer be the same?

4) We won't be in a recession forever; consumers will move up the value chain again; millenials with continue to respond to social media promotions and this is generating a huge base of new wine consumers (thank goodness!). HOWEVER what will be with all agribusiness-related companies forever is the challenge of water -- where to get it, who controls it, how to manage it, and technologies to conserve it. I'd like to hear how YOUR WINE-RELATED ENTERPRISE is weighing in on this issue and/or what you are in fact doing about it. How should we as "leaders" get involved? Or is it too hot to handle?

5) It is a common challenge to better understand customer behavior within the various levels of the market. For those of us with personal passion for the unique subtleties and complexities of world-class wine, should we be concerned that growth in consumption of $40+ / bottle appears to be increasingly attributable to luxury goods marketing rather than appreciation of quality and quality standards? Regarding quality, are consumer preferences dividing between wines characterized by power versus those characterized by nuance? If so, is demand in one category outpacing the other? How has culture shaped these preferences and does it differ in the US versus Europe and Asia?

6) The business challenges we're facing stem from the impact of current economic conditions for small wineries (4,000 to 50,000 cases). These wineries are our clients and target clients. They are facing price compression (higher priced brands lowering their prices to combat declining sales) and assortment "freezes" (distributors and retailers either reducing or eliminating the addition of new suppliers to their assortments). What can the small winery do to survive in this environment and how can we tailor our own services to better meet their needs?

7) How long will the expensive, inefficient, selective three-tier distribution system prevail against the rapidly accelerating consumer and trade (retail and restaurant) demand to seek their own options in the wine products they carry and/or consume?

8) How do wineries gain markets and access to consumers in an industry where Federal, state and local regulations have been established for decades favoring the xclusive three- tier distribution system?

9) Our wine company, celebrating it’s 5th year anniversary, is working diligently on its plan for the next 5 years. The company has grow from zero revenues to revenues north of seven figures in its first five years by focusing exclusively on wine quality by owning and controlling the key inputs of wine: vineyard, barrel, and winemaking. However, it does not own any winemaking assets such as a production facility and related equipment. Given the large capital outlays required for real estate and the increasing cost and sophistication of equipment, is (will) the production model for wines in the $25-50 price point continue to resemble the past whereby each winery has its own stand alone production facility? Or can winemakers and consumers accept that production assets will be shared across various wineries? Is now the time to lock in low cost production assets or do we remain capacity flexible and fixed cost free?

Who was in the group? The guest list includes wine businessmen from all walks of the industry -- grapegrowing, winemaking, distribution, marketing, finance, and organizations large and small, with current and past affiliations that represent the full spectrum of involvementLook at http://harvard-in-wine.blogspot.com/2009/09/hbs-in-wine-meets-in-napa-sept-8.html

.

Please Muddle Responsibly: Perfect Viral Marketing!

It's always a wonderment to know how viral marketing efforts hit my email in-box, but this one is a nice surprise. It could also serve as an almost perfect case history of how wineries could market their products.


First, I receive an email that DOES NOT hit my spam filter. This means that the marketers are using a service like Constant Contact or Vertical Response that requires its clients to get opt-ins somehow from its target customers. Bravo!


Secondly, the email subject header is brief but compelling: "Recipes of Rio - Leblon Cachaça"










The email text is interesting:

Bom Dia,

As a Brazilian living in Rio, with a passion for spirits, I have been fortunate enough to have the opportunity to work at some of the top hotel bars in Rio (I am currently the head bartender at Hotel Fasano-Rio). In my search for inspiration of new cocktail creations, I enjoy spending time visiting and trying out what some of the top bartenders are making throughout the city.

I have taken the opportunity to explore a few of my favorite cocktail bars with Steve Luttmann, of Leblon Cachaça. There are so many great places to visit that I couldn’t take you everywhere, but I wanted to share some of my journeys through Leblon, Ipanema, and Copacabana and introduce you to some of my friends and colleagues.So, I share with you some of my Favorite Recipes of Rio!

Saude!

Next, when I do the display-images thing on my email, the photos at the top of the email (see above) are varied, vibrant, and it doesn't hurt that they include some good-looking bartenders.

After a few seconds, the YouTube video magically opens when you click on ANY image or recipe. The soundtrack is terrific, the movie a watchable 3 minutes. Try it yourself:

http://www.youtube.com/watch?v=DNH_RLrllw0

Then, reverting to the email again, the recipes are clearly posted and printable.







What could be more perfect? Hats off to Leblon!







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Cape Dreams Brand Promotion leads with Water Conservation Notes

The Cape Dreams brand (to be launched in October by Heritage Link Brands) will be promoting the Rooiberg Winery Area's water conservation practices as part of the launch. What a smart thing for this group to do -- to attract US consumers to whom not only good wines, but sustainable practices, are important.

"Produced by: Rooiberg Winery Area, South Africa
Conserved: 6343 ha
Wine District: Robertson
Biodiversity highlights: Area conserved – 6343ha.

The natural area represents some 57.3% of the total land belonging to Rooiberg. An endangered, indigenous fish called the Breede River Redfin was discovered on one of the members farms, and a number of rare succulents and other plant species have been identified on some of the others.

First co-operative cellar to become a member of BWI in South Africa!
Rooiberg Winery near Robertson has made history by becoming the first co-operative winery in South Africa to achieve membership status with the Biodiversity and Wine Initiative (BWI).

They have achieved this by conserving valuable natural habitats on their member’s farms within an important succulent karoo region, and by embracing the principles of sustainable production.

Eight out of the 18 farms belonging to Rooiberg were selected as having the most conservation-worthy land and a letter of commitment was signed by each of the respective property owners and Rooiberg’s CEO, agreeing to not develop new vineyards on the pristine areas identified.

The 8 farms collectively contain some 6343 hectares of unploughed, natural land which represents 57.3% of the total area belonging to co-op (11 069ha). These are areas that have pristine lowland vegetation, wetlands, rivers or mountain regions.

The Breede River valley between Worcester and Ashton provides a remarkable meeting place for 3 major vegetation types namely Succulent Karoo, Renosterveld and Fynbos. This explains why the number of plant species found here is exceptionally higher than in other areas and cannot be matched anywhere in the world for a comparable arid region of the same size.

Preliminary surveys were made of flora, fauna and bird species on Rooiberg’s farms. One exciting finding was an endangered, indigenous fish called the Breede River Redfin (previously called Burchells Redfin), which is found only in a few, untouched Western Cape Rivers and is a superb indicator of river health. This special fish was discovered in the deeper pools of the upper Noree River in the Vinkrivier area."

This note was submitted by Selena Cuffe
Selena Cuffe is the President and CEO of Heritage Link Brands, LLC. She presides over the company's strategic and operational direction. With over 10 years of general management experience, she has served in key roles for United Airlines, Procter & Gamble, and the Council on International Educational Exchange (CIEE), overseeing initiatives for over 20 countries.

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Charity Wine Events Help Build Awareness of Small Wineries

You don't need to be a big well-funded and profitable mega-winery in order to make a meaningful contribution to important charities in your community. I know that small wineries, in particular, feel nibbled-to-death-by-ducks, with the number of requests that they get for a case of wine here, a case of wine there. So it is with the average citizen with the requests from police leagues, museums, performing arts groups, high schools, etc. The wise contributor -- citizen and company alike -- assesses what organizations do in fact reach the most worthwhile groups in our society, and consolidates their giving.

One example of putting this thinking into action is the group of wineries that participated in a worthy annual event in the Lake Tahoe area -- and that is the Soroptimist Wine Tasting held in the Truckee-Donner area recently. I was amazed at the huge turnout and camaraderie at the annual fundraiser for Soroptimist International. This event is usually held in May or June, and if you travel to, or live in and around Lake Tahoe at this time of year, you too should attend.

“Sip, Savor, and Smile” was the theme of this 35th annual event. Wineries participating were Bantam Cellars, Benziger Wine, Fenton Herriott Vineyards, Karly Winery, Lone Buffalo Vineyards, Nevada City Winery, Renaissance Vineyard & Winery, Secret Ravine, Steele Wines, Truckee River Winery, and Vina Castellano Vineyard & Winery. You can order most of these wines directly from the wineries via their websites, and I believe that many bottles and cases were sold that way after the event. (Pictured above are the Vina Castellano folks pouring their wines).

Below are just a few of my favorites from the tasting:

Secret Ravine (Loomis, CA) poured its 2005 Rose and the 2004 Zinfandel. Located in the Sierra foothills, this winery specializes in wines made from locally grown grapes. The 2005 Rosè is a light dry wine. The bright red color and taste that includes hints of strawberry, vanilla, plum and peach make it an ideal summer wine. 15% alcohol. $12/bottle. The 2004 Zinfandel is just as full of spice and fruit as a good zin should be! 15.8% alcohol. $14/bottle. http://www.secretravine.com/

Steele Wines (Kelseyville, CA) has a red wine in their Shooting Star labeled wines named “Black Bubbles”. It is a sparkling syrah which is a sweet, great summer wine. Sparkling shiraz is a great Aussie tradition; you must try it. 13.5% alcohol. $16/bottle. http://www.steelewines.com/

Lone Buffalo Vineyards (Auburn, CA) makes food-friendly, Rhône-style estate produced wines; I particularly enjoyed their 2008 “Buffalo Rose” , made from their 2nd vintage of our estate grown Sangiovese grapes. It has a fruity strawberry character, nicely dry, and is a perfect summer picnic wine. Only 50 cases were made, so contact them now! $14/bottle. The Thunder Beast Zinfandel 2007 is a classic Foothill Zin. Beautifully balanced, with a big and bold raspberry aroma. Only 60 cases produced. 15.9% alcohol. $20/bottle. And of course there is the Where the Buffalo Roam, a blend of 73% syrah, 23% Grenache and 4% Mourvedre; this Rhône-style red blend has lively fruit, a hint of spice, and is easy to drink. $18/bottle. http://www.lonebuffalovineyards.com/.

Viña Castellano (Auburn, CA) featured its 2005 Tempranillo, which won a Gold medal at the San Francisco Chronicle compeittion. I found it really yummy, with lots of fruit, spicy, medium tannin, juicy, and nicely balanced. $26/bottle. http://www.vinacastellano.com/

Renaissance Vineyard & Winery (Oregon House, CA) is a small production winery that uses only its own estate grown, hand-harvested grapes to make distinctive terroir wines in limited quantities. Assistant winemaker Shawn poured its 1999 Cabernet Sauvignon which was a lovely fruit-forward cab, with cherry aroma and taste. This vintage has retained its fruit, and will be quite palatable for another 5 years. $30/bottle. http://www.renaissancewinery.com/

All of these great wines (and many more were poured!) were accompanied by tastes of the specialties from local restaurants including Baxters, Coffee and Cottonwood, Coyote Moon, Dragonfly, Drooling Dog BBQ, Moody’s, Ron Allen Catering, Runway Café, Squeeze In, Thai Delicacy, Truckee Sourdough, Twin Peaks Catering, Village Pizzeria and Wild cherries.

Soroptimist International began in 1921 in Oakland with 80 professional women. Today it is the world’s largest service organization for professional and executive businesswomen, with programs in the areas of economic and social development, education, environment, health, human rights & status of women, and international goodwill and understanding.

~ ~ ~ ~ ~ ~
© 2009 Barbara Keck

For more information on dining and the wide range of activities around Lake Tahoe, see the online version of The Tahoe Weekly. Much of this information above appeared in my column "It's Grape" in July 2009.

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Why Costco Rules the Wine Retailing World: One reason is Brian Ellis

In his first three months at the Costco in Castleton, Indiana, Brian Ellis increased wine sales 80%. He did it by simply hanging out in the wine section of this store in the Northeast suburbs of Indianapolis, extending a handshake to anyone who got close to a bottle of wine, having a ready smile, and asking customers his well-honed key question: “What’s the last wine that you drank that you really liked?”

These are great tips for successful wine salesmanship – but there may be only one Brian Ellis. If there are more, Costco is hiring.

Blessed with a remarkable sense of smell and a memory for the essence of every wine he’s ever tasted, Brian is a cornerstone of this store. When he joined Costco a few years ago, he managed to imbue all the other Castleton managers and staffers in the store with his enthusiasm about wine.

I feel privileged to have spent 90 minutes with him today. And Costco is probably glad too. I came in determined to buy only two more bottles for my Indianapolis-brother’s wine rack. Six bottles later, I am really happy.

This adventure with Brian at Costco started out when I went to update my membership card and figured out it was easier to do that while visiting Indianapolis than to wait in a line of 80 in San Francisco. Mark, the membership services guy at the counter, showed the usual Midwestern openness and asked what brought me to Indy. I told him briefly about the videotaping I’d done for the Hoosierwinecellar blog and the plan to go to the Indy International Wine Competition event. Mark brightened, and said, “Oh, too bad Brian is not here today. You really ought to meet him.” Mark explained that Brian was a wine steward at the store. Wine steward –AT COSCTO? Business card at the ready, I asked Mark to please have Brian call me.

We met at that fine dining establishment, the white formica tables in front of the “Polish Sausage and Soft Drink, $1.50” sign. Trained as an electrician, Brian said he switched careers after an accident on the job many years ago. Deciding what to do was easy, since he discovered fine wine in the late 1970’s. He’s been drinking and learning about wine, and collecting it too, for almost 25 years now. Brian’s first wine industry job was as a wine salesman for Midwest Wines, a promoter. He did an event at the Castleton Costco, and sold so much wine during the event that the store manager asked him to consult with them. After doing that for a few years, he signed on full time in 2008.

Brian has two secret weapons: his outgoing personality, and his wine memory. “All I have to do is taste a wine once, and I can remember it,” he says. His eyes got that distant sensory-experience look, as he recalled the 76’ legendary German Rieslings of his early wine loving years.

In his spare time, Brian does educational tastings for civic and professional groups. He has a few first-principles he imparts to beginners: “You need to know European wines before you know any others. Start with French wines, then learn Italian wines, then Spanish.” “Pinot is such a difficult grape to grow; of course it is expensive. But when it is good, it is the best. When it is bad, it is the worst.”

He does some home winemaking in order to keep learning about the process. Along the way, he found this out: “Most winemakers decide in advance what the wine will be like. Then they just help nature along.” Brian tries to make truly classic vinifera style wines using what Indiana has most of: fruit. His best so far is a cherry/plum blend where he said the fruit simply transcended itself. He thinks that adding sugar to a wine after the fermentation is done is cheating, and he won’t do it at home and he won’t recommend a commercial wine where that’s been done.

Recommending wines to customers at Costco has its limitations. Those limitations have to do with the constraint on numbers of wines that the regional buyers supply to the stores. But after a few years of steadily nudging the office in Chicago to stop tilting toward California wines so much, Brian has been able to secure a good selection of European, South American and Australia/New Zealand wines, even the occasional South African wine. No customer of Brian’s ever walks away disappointed!

Brian sees his main job at Costco as that of educating customers. “Trust is the currency I have with my loyal customers,” he says. Those customers have his personal e-mail and cellphone number, and ask him for advice frequently – most often around the holidays, he notes. “True wine people are always looking for something different. I try to move the customer who is used to buying by brand name to a more experimental outlook.”

It’s easy to experiment with wines from Costco. I’d bought a Cline 2007 Ancient Vines Zinfandel there for $11.99. Just for curiosity’s sake, I’d done an internet search on this wine on http://www.wine-searcher.com/, and the best price I saw was $12.80. The median price was around $14.00. “Costco negotiates prices,” explained Brian. “That, of course, plays a huge role in what’s distributed to the stores. But the good news is that it is corporate policy to sell wine at only a few margin points of profit. Customers benefit tremendously.”

What’s the worst thing about working at Costco, I asked.

“Walking through the detergent section,” Brian replied.

He then tapped his nose...

HE MADE ME BUY THEM, HONESTLY HE DID….!

I have these wine conversations with my brother the doctor every evening when I visit him. I cook; it’s my way of repaying his hospitality since his busy physician’s schedule in Indianapolis doesn’t give him much time to visit me in California. I’m not a great chef, but he’s grateful for a hot meal at the end of his 11 hour days.

He’s been pleased to see a glass of wine at his place on the dinner table, and he usually says the same thing as he sits down: “I hope you didn’t pay more than $7 a bottle for this, it all tastes the same to me.” This week, thanks to Brian’s help, he’s learned differently. I think. As my sibling, he’d never confess it, if so.

Brian’s choices under $30 (available at Costco in Castleton IN, mid-June 2009)

Chateau Olivier 2005 Grand Cru Classe de Graves, Pessac-Leognan, France $26.99

Pio Cesare 2006 Barbera d’Alba, Italy $15.79

Santa Rita 2006 Cabernet Sauvignon, Special Reserve, Medalla Real, single estate D.O. Maipo Valley-Chile $14.99

Luigi Bosca 2006 Malbec, Reserva – Lujan de Cuyo, Mendoza- Argentina $12.99

Etim Seleccion 2006 Montsant, Spain $9.99

Bodega Tamari 2008 Torrontes, Reserva, Mendoza-Argentina $9.99



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Wineries Need to Get Creative to Attract Readers to Their Newsletters

Every day, we all get requests to join a winery newsletter list. Sometimes this happens at the tasting room, sometimes at regional or varietal wine tasting events, and sometimes friends send a “you must join this list!” e-mail. But there’s got to be a reason beyond good will for a consumer to agree to have yet another message delivered to the in-box. Here’s one creative idea that worked, from Charles Creek Winery, Graton, CA.

Their Tecolote Times newsletter often has recipes, suggestions for wine pairings, notes about upcoming seminars and other things that go beyond merely trying to sell more wine. Those are reasons enough to like a newsletter, but then they added a compelling item: a cartoon caption contest. Who isn’t addicted to cartoons?

Readers are urged to “put on your (funny) thinking caps for this months’ Cartoon Caption (or word balloon). Send your witty verbiage to info@charlescreek.com with “CCV CCC” in the subject line. Remember, the winner will receive a pair of seriously tasty Charles Creek wines as their reward. With that in mind, don’t forget to vote for the winning entry from last months ‘toon-test...”

So I did put on my funny thinking cap, and Guess What! I had two seriously tasty Charles Creek wines delivered to my door.



WINNING CAPTION:

Nice glass for a nose bath, but where do I put the wine?







The red wine was an En Casa Merlot, Carneros, Sonoma County, 2004. I found the aroma and taste of plum, a very juicy wine, with soft tannins and light pepper on the back palate. It paired wonderfully with the New York strip steak that my married son Matthew grilled up for Sunday dinner with his family. Yet to be opened is the Las Patolitas Chardonnay, Sonoma County 2006.

If you’d like to participate in the contest – it is fun! –you’ll have to sign up for email communications at their site at http://www.charlescreek.com/mailing_list.php. And the newsletters are archived (click here) so when you win, you can just forward the fun on to your friends. What a good idea!

Have You Got Them on Your (Wine) List? These Ideas Should Not Be Missed!

With restaurant visits down, it makes sense to raise the tab by selling more wine to each and every patron. I’m sure there is consumer behavioral science involved in creating the optimal wine list, and certainly knowledge of wine, but my sense is that most restaurateurs and wine bar owners simply do it their own way. So here are a few thoughts on making a wine list more attractive and consumer friendly.

• First Principle: Readability PLEASE! No patron should need to pull out reading glasses to see what’s on the list… kind of destroys the romance, I think. So if you can print your wine list in 11-pt type or above, you’ll be ‘way ahead of the competition. There really should be no compromise on this principle. Use more pages. Or feature fewer wines.
  
  
• Intrigue the customer. I really enjoyed the list at Six Peaks Grille, the fine dining restaurant at the Resort at Squaw Valley. Rose Chehade is in charge of the wine selection there. She divided the list by the usual categories – white wines, red wines, and then added a separate category for small formats and large formats of each. Who could resist looking at Ms Chehade’s selections called Particularly Diverse Whites, and Diverse and Extraordinary Reds? Ka-ching!
  
  
• Educate the customer. It’s nice to help your patrons understand the AVA or region that the wine is from, but that information can take up a lot of space on a wine list, threatening readability. One clever way around this conflict is the solution used by Bistro Ralph in Healdsburg, CA. They’ve abbreviated those terroir designators and put the index to abbreviations at the end of their list with only the abbreviations next to the winery-vineyard-varietal-year information. For example, AV – Alexander Valley, CH – Chalk Hill, DCV – Dry Creek Valley, and so on.
  
  
• Offer a good selection of 375 ml bottles. This probably goes without saying, but it’s one way to offer fine wines at an affordable price point.
  
  
• Make your list a souvenir. Giving a copy of your wine list to your customers just makes good sense … it’s more powerful as a marketing tool and more compelling for repeat or word-of-mouth business than that dinky business card. And why not offer your customers a pencil to make notes directly on that give-away list, nothing what they liked about the wine they chose?
  

Feedback, anyone? Comments welcome on your favs and gripes about wine lists!

Retainers Stink: It’s Time for the Wine Industry to Change the Old Ad Agency Paradigm

In the middle of a recession, buyers with cash have enormous power. It’s no wonder that vendors of advertising and marketing services target their pitches toward wineries, wine bars and wine shops that have either backers or profits, or both. Those in the wine industry rightfully seek to protect their resources - in this case, their marketing budgets. That’s frustrating to providers of advertising and other marketing promotion services. But it is long past time for a significant shift in the ad agency paradigm.

It’s not only wineries who are rethinking how to squeeze the most out of their marketing budgets. I talked to the Director of Group Sales for Kimpton Hotels on a flight to Chicago recently. He is fed up with his agency and their insistence on hefty monthly retainers, billed automatically without a report on progress toward marketing goals.

He’s not the only one who is annoyed with the old ad/promotion agency paradigm of retainers.

When I was starting my marketing career, I worked in PR for a big ad agency in Boston. At the end of every month, usually around the 24th, our group director would cast his eyes over the billables to date. If they were too low to justify the retainer, the command went out to, well, um, churn the account… not in so many words, of course, but the end result was slap-dash quick-and-dirty projects that filled the timesheet.

I learned from this. I learned it stank. It sure wasn’t consonant with my Midwestern farm girl ethics. And this is the great danger of one of the elements of that old ad/promo agency paradigm, the retainer.

So here is what I think is right for today’s recession-benighted budgets. Ask your agency to move toward more transparency in their advertising and marketing proposals. Have them put together project-based programs that work toward your goals. Each project has a budget, and it is billed 1/3, 1/3, 1/3 at beginning-middle-end. Insist on monthly progress reports for each project, even if the report is just a “we are working on the press list, we have contacted major bloggers, we have a few initial design concepts.” And be prepared to give your agency at least 30 minutes a month to discuss the report.

Is there a downside in this approach? You bet. Some agencies, used to the easy buck, will refuse to play. ( Why should they? They’re playing with your money.) Some marketing departments won’t like the peaks-and-valley billings that this project-oriented approach sometimes creates.

There are other stinky parts of the way advertising and marketing services work, too. Recently I’ve heard rumors of a marketing group who charged a $5000 monthly retainer to a wine industry supplier company, more as a guarantee that no other clients in that segment would be served by that marketing group, than for the creation and execution of a legitimate marketing programs.

Shameful.

Over the next few weeks, I’ll share some other ideas and war stories from the marketing battlefields with you. In the meantime, post comments with your own pet peeves, ad/promo horror stories, or just the inevitable don’t-rock-the-boat. And post comments on the warm fuzzy stuff too. Hopefully we will all learn from one another on how to get more bang for our marketing buck. A bottoming-out economy can bring some important changes. Let’s hear more about what some of those changes should be.

Wine Snobs Don’t Necessarily Keep a Wine Bar in Business

I pitied the wine bar proprietor when my Haahvaaard friend took him to task for his wine list, after the jazz band finished. “Look,” she said, “I’m a wine snob, and if you really want to appeal to the NPR market, you’ve got to do better than this.” Sadly, she missed the point – the wine bar owner had upscaled the EXPERIENCE, and that’s good business anytime.

Like many wine bars in recession-challenged cities like San Francisco, Café Royale (Leavenworth @ Post) has reformatted and reformatted again. Owner Les Cowan has put together an incredible list of events: live music many nights, always Jazz (no cover charge) from 6-8 p.m. Sundays, comedy acts, artists’ receptions. Something for everyone!

Last Sunday, the Gregory James Quartet was playing mellow jazz. My friend knew the girlfriend of the lead guitarist – that‘s why she was there. Join us, was the text message. And so, I did. It was great until those well-toned taste buds spoke up. Not mine – hers.

I’m not a wine snob. I’m a wine fan. I’m also a proponent of this great American (and worldwide) business of wine, and my taste buds are obviously not up to Harvard snuff (although my student loans were…). But I liked Les’ list. Good tasty wines at wine-by-the-glass prices that keeps the place open, and accessible to a local clientele. And those regular locals are the folks who keep a wine bar in business.

Café Royale’s list features a respectable 20-or-so wines. It is varied and affordable. In the reds, a Torres Tempranillo 2004 is $9/glass, $34/bottle. Monte Vina Zinfandel 2003 at 8/30. In whites, a Benvolio Pinot Grigio 2006, 8/26. Norton Torrontes 2005, 8/30. Jekkel Gewurtz 2005, 8/30. And to tickle the sweet tooth, Warre’s Optima tawny port 10 year, $10 a glass.

Check it out. Oh, and check the wine-snobbism at the door when you enter. Put on your party hat and tip it a bit for the wine bar owners who make it possible for us commoners to enjoy art, performance and music with a nice glass of wine in our hands.

Why is California Neglected by Wines of South Africa?

It's a long story, but it has to do with spending several weeks in and around Stellenbosch, talking to food scientists and others involved in the wine industry at Stellenbosch Universitat, going to tasting rooms in and around Stellenbosch, Paarl, Hermanus ... and finally ending in an office at WOSA (Wines of South Africa) to chat about promoting these wonderful wines in the USA.

It's been over a year of frustration now, scouring the racks at Jug Shop, BevMo, Wine Merchant, K&L, Safeway,SaveMart, Whole Foods, World Market etc etc and wondering... where the heck are they? Why is it that we have such anemic selections of South African wines here in California?

I even went so far as to organize a tasting of South African wines at a garden party on Russian Hill in South Africa.... just to see what 80 neighbors could find. The results were pretty darn sad.

Now, if you are any kind of well-rounded wine drinker, you know that these "new world wines made in an old world way" are superb. It might take a while to develop a palate for "Steen" (their word for Chenin Blanc), but there are some darn good Steens available in South Africa.

So how about it? How about putting some promotional oomph into the West Coast? Maybe the recent initiatives by the newly-formed group USAPA will finally get the fires lit here. In a way, it's sad that a second group is emerging to do the job in marketing ZA wines more aggressively to the USA, but, well, finally.... ! !

Marketing, and Leading, Through the Fear Cycle

"How Frank or Deceptive Should Leaders Be?"

What a great come-on! Who wouldn't read an article with a title like that? Particularly when it comes from that font of managerial wisdom, the Harvard Business School "Working Knowledge" newsletters that are designed to keep the grey cells moving. In addition to transparency, the need for high ethics, and the importance of smiling through the Fear Cycle, B-school experts continue to beat the drum of marketing experience and have this to say about Leading in a Crisis: Be aggressive in the marketplace!

Jim Heskett, Baker Foundation Professor emeritus at HBS, set this up as a discussion forum. You'll want to see the whole string -- with remarks from Directors and department heads of major companies like Saint-Gobain Weber and Intuit and Motorola, to officers in the Ministry of Commerce in Pakistan, to the all-important "anonymous" responders. Click here to read it all

The comment No. 4 by Ryan Schon caught my eye. He wrote, in part, "I don't think there's anything wrong with leaders acknowledging that we are in a fear cycle right now but that capitalism and entrepreneurship will prevail."

Yes, we are in a fear cycle. As of March 3, 2009, consumer confidence and business sentiment are at historic lows, according to a chart developed by UBS based on data from FactSet.

But here is the what you should really pay attention to, and it is lucky number point 7 in the article authored by Bill George in the online Wall Street Journal on March 5, titled "Seven Lessons for Leading in Crisis".

"Be aggressive in the marketplace."

Just how do you do this? Actually, I am not going to tell you anything you don't already know.

First, DO NOT CUT your marketing budget. However, you might want to bring it closer into line with the consumer groups who are still spending (read: Millennials). And there are cost-effective distribution strategies you can pump up right now, such as doing ride-alongs with your distributors and meeting those wine selling foot-solders known as store and restaurant owners. A little creativity goes a long way in advertising and PR (um, how long since you've tuned up your graphics and messages?). Coordinate the elements of your program closely; it's no time to waste your dollars by letting your attention slip.

And, smile. Smile a lot. If the stress has been great, practice smiling in the bathroom mirror until the face muscles go there automatically and the laugh lines reappear.

Just one last thought on transparency by management -- whether you are a winery owner or marketing manager, or a CEO or sales director for a supplier company -- pay attention! Because down there at No. 32 on the discussion is my favorite, from Scott W. Ventrella, Managing Director of the Center for Corporate Ethics. "Under no circumstances should a leader attempt to deceive or mislead members of their organization. That said, it is incumbent upon leadership to present the facts but not dwell on the negative (or draw premature conclusions no matter how dire the situation). Fueled by vision, hope and optimism, great leaders over time have energized and inspired people to see beyond "hopeless" situations -- without compromising their own
integrity.”

Mumbles of Protectionism

"It's just not a level playing field," commented one winery owner during a coffee-break chat at the Ahead of the Curve seminar in early March hosted by Napa Valley Grapegrowers. When the panelists took a look at the success of low-priced wines coming into the US market from such countries as Chile, Argentina, Australia ... the hackles went up.

Just to stir the pot a little, yours truly asked the moderator a question about the desirability of trade barriers in light of the erosion of market share in the value-priced segment prompted by these international players vis-a-vis US producers. WOW. What a hot potato! The question was rapidly deferred, termed "political" (it's not -- it's an economics question too, by the way), and no further public discussion took place. But plenty of coffee-break discussion resulted!

It is a Catch-22. The good article posted March 2 on Decanter.com: "US wine exports break $1bn" was a great summary of the situation. "Nearly 55m cases of wine -- 90% of it from California -- were shipped last year, up 8% on 2007. By value, exports rose 6% to $1.01billion according to US Department of Commerce figures, " cited the article. That certainly represents a big boost to California winemakers. On the one hand.

On the other hand, what can be done to help U.S. winemakers who should compete head-on in the value-price segment? (And they should compete, given the high growth there...)

It is a God-helps-those-who-help-themselves situation. Clearly the marketing promotion for wines from Chile, Argentina, Australia et alia is superb: Traditional advertising (wine region based) in lifestyle magazines, travel sections, big newspapers. Wine tastings here, there, everywhere. Development of wine tourism. Reviews. Tweets. Facebook plugs. Blogposts. Price Promotions. Endcap displays. Paid trips for wine buyers to those countries, vineyards, wineries. Jeez, how can a US winery compete?

Here are some ideas: Traditional advertising (wine region based) in lifestyle magazines, travel sections, big newspapers. Wine tastings here, there, everywhere. Development of wine tourism. Reviews. Tweets. Facebook plugs. Blogposts. Price Promotions. Endcap displays. Paid trips for wine buyers to those countries, vineyards, wineries. Sound familiar? The approach is called "fighting fire with fire".

That's the best way to level the playing field. Get on it and fight hard! Use the power of your industry associations and AVAs to develop programs that will help. One caveat: fight fast. You must be nimble and speedy in marketing during a recession.

Oh by the way, you might do more with your internet sales. After all, you've got the shipping advantage here...

Marketing Your Way Through a Recession

In a working paper published in March 2008, Harvard Business school professor John Quelch outlined several important steps for company success during these tough economic times. To read the whole article (it's short and succinct!), CLICK HERE. In summary, there are several important things to do:

1) Research the Consumer
Understand the impact on redefinitions of value, price elasticity
2) Focus on Family Values
Adjust your MarCom messages and new product development plans
3) Maintain Marketing Spending
Now is NOT the time to cut this item!
4) Adjust Product Portfolios
Products need to address the new consumer realities
5) Support Distributors
You need to read this paragraph in this article! CLICK HERE
6) Adjust Pricing Tactics
The role of temporary price promotions, credit policies, smaller pack sizes
7) Stress Market Share
Know your cost structure so that cuts/consolidations have minimum customer impact
8) Emphasize Core Values
Reassure good employees, maintain quality, service existing customers

In summary, Professor Quelch says, "Successful companies do not abandon their marketing strategies in a recession; they ADAPT them."

(One of the best benefits of having worked my tail off to get a Harvard MBA is the fact that the school never lets you get rusty. Their emphasis on lifelong learning means a constant stream of newsletters, working papers, seminars, etc. that is truly astounding. I'll cull the most timely of these for my blog from time to time, to share with you. )

Where's the Buzz?

Like many people (mostly men, I think), I have reading material close at hand for contemplation during my morning constitutional (oh yeah, pretend you don't!). This is our chance to ponder the fringes of the universe and the topics that populate the "c" list of our oh-so-busy lives. One such ponderable is a note I printed out on a LinkedIn app called Company Buzz.

LinkedIn introduces this feature thusly: "What are your customers saying about your company? Every second thousands of people are sending out messages about companies and industries on blogs, twitter, and across the internet. Company Buzz taps into this information for you, to find the relevant trends and comments about your company."

I will. And while I am at it, I'm going to explore the other tools that let companies follow what's being said. I'll be back with more apps and the results using them as a test case by spending a few days tracking his company for a friend at ACI Cork USA.

Yes, you can google your company's name. That's one easy way to track the Buzz. But the immediacy of follow-up should be an important marketing concern for any company where there is a deprecating remark posted or negative buzz that's starting.

Beyond the crisis management aspects of tracking the Buzz, knowing that your company is increasingly in the public eye is one sign of the success of your marketing, viral and otherwise. Oh, Hello! Social Networking is here to stay! As a marketing professional who puts a lot of time into staying on top of communications trends, my press list for my PR clients includes bloggers, e-Zines, .com's of major magazines, other www's in the wine industry. I'd be doing a disservice if I just sent business news for clients to the old standbys: magazines, newspapers, business journals, TV/Radio. It's simply not enough anymore to do that kind of traditional marketing communications.

But the next step is the metrics. It's great that Constant Contact tells me how many "opens" my e-mail blitzes get. That's a good first start. (I could brag here, but I won't...) But beyond the bare splathering of news into the ether, I want to know who is saying what about my client companies. And my own.

So stay tuned.
And if you have hearsay or experience with any tracking services, please post a comment.

Marketing & Packaging Dynamics Today -- Zinfandel Producers Give Their Perspectives

Twenty-five winery owners and winemakers took time from pouring their wonderful Zinfandels at the recent ZAP (Zinfandel Advocates & Producers) event in San Francisco to answer some state-of-the-industry questions.

MARKETING DYNAMICS TODAY

The first question was “What, in your opinion, are the key issues and concerns that relate to marketing of your wines today?” The summary answers are 1) the economy and its impact on wine sales, particularly on high priced wines 2) the importance of social networking in getting the message out, and its particular importance for smaller wineries that do a lot of direct-to-consumer sales; 3) the recent excise taxes proposed by many states, including California); 4) the need to unify shipping regulations for ease in doing internet sales; and 5) the concerns about media overload and penetration of message to consumers, as well as the need to educate the public about wine. Regardless of the list of concerns, however, the overall feeling is upbeat. “It’s all about keeping customer’s happy. There will be ups and downs economically, but we will all be okay.”

1) The economy and its impact on wine sales, particularly on high priced wines
• “The state of the economy is a worry. Price point has really become a factor. In the $20-30/bottle range, consumers are not afraid to buy … but they are buying one bottle or two, not a case.”
• “The economy is a major marketing issue. We are a premium wine, so it is a tougher sell for us.”
• “Today’s issue: price point. But this is a cyclical kind of thing, and we as an industry should not be reactive to it; we should just keep on marketing.”
• “Everybody is kind of bogged down right now. There is a lot of wine in the pipeline and new orders from distributors and broker are not pouring in.”
• “Consumers want good quality wines for less money. It is important to have wines that give consumers great value at a reasonable price. The under-$20 price point is ideal, but even there, you must give consumer a good quality product.”
• “Price point. I suggest that it makes sense to keep wines at a certain price point right now. Under $30 for premium wines. Under $25 for mid level. Under $15 for moderate-priced and locally produced wines. Under $10 will fly off the shelf!”
• “We must be aggressive about moving inventory by cutting prices. I see a range of price cuts ahead in the 20% category.”
• “The distribution side of the business is affected a lot by the economy. There is a big backlog of inventory right now, and restaurant/on-premise sales are ‘way down. This means it is really important to keep our Direct To Consumer efforts going strong.”

2) The importance of social networking in getting the message out, and its particular importance for smaller wineries that do a lot of direct-to-consumer sales
• “We need to learn how to use bloggers to get the word out for new wineries in particular.”
• “I worry about how to get our name out when we are such a small producer. Maybe social networking is the answer.”
• “Since we just released our first wines a few months ago, we are trying to break into the market. We are taking the time to learn how to use Facebook and Twitter for marketing.”
• “We sell primarily out of our tasting room and on-line, and using social networking should help us.”
• “Internet marketing has a big role. People want instant communication. There is no other consumer item that is as competitive as wine, and we need to use the internet to our advantage.”

3) The recent excise taxes proposed by many states, including California)
• “The tax in California amounts to a 640% excise tax. That will make it really hard to market my wines. My wine is comparable in taste to an Argentinian Malbec, and even after the taxes are applied to those wines, they’ll still be around $7 a bottle. I can’t compete.”

4) The need to unify shipping regulations for ease in doing internet sales
• “It is just too complex. We need to unify and ease shipping and licensing conditions across the whole United States.”

5) The concerns about media overload and penetration of message to consumers, as well as the need to educate the public about wine.
• “I am concerned about message retention by consumers. It is hard to reach them about the uniqueness of our wines, for consumers to keep that in mind when they are so bombarded by the media.”
• “We can’t let up on our efforts to educate the public. There is still a huge population base that doesn’t understand the value of wine in their lives and on their everyday tables.”


WINE PACKAGING DYNAMICS TODAY

The second question was, “What , in your opinion, are the key issues and concerns that relate to the packaging of your wines today?” The summary answers are: 1) Cork: cleanliness, TCA, costs and availability; 2) Bottle weight; 3) Labels; 4) Other closures.

1) Cork: cleanliness, TCA, costs and availability
• Every answer in this category of concern was pretty much the same. (But your author knows for a fact that the cork industry has done a lot on the cleanliness and TCA issue; see a great review at http://www.jancisrobinson.com/articles/20080212_2.html )
• On the issue of cost and availability, four of the respondents cited these concerns.

2) Bottle weight
• “There’s been a trend in wine packaging for the past few years to use heavier bottles as evidence that a wine is a premium wine. There’s really no need to do that. In fact, what’s happening now is a REVERSE in the trend – everyone wants lighter bottles.”
• “Bottle weight and landfill issues are related.”
• “Green green green. The call for lighter weight bottles is part of that movement in our industry.”
• “We need to look hard at the economics. Maybe we should buy glass locally instead of from India or China.”

3) Labels
• “Eye appeal is vital.” “It’s important to have a label that catches the consumer’s eye on the shelf”
• “A winery should want its labels to match its personality.”
• “There is definitely a need for eye-popping labels, and this is crucial with the millennial generation of buyers”
• “Hey, we need larger fonts on wine bottles! Consumers need to be able to read the labels”
• Label information: there is a growing need to give consumers brief info about the wine in 20 words or less.”
• “Critter labels. Thank goodness they are disappearing.” “Critter labels are stupid”. (I swear I didn’t prompt these responses! But your author agrees, see my blogpost of September 20, 2008: winebiznews.blogspot.com/2008/09/critter-wines-and-critter-shorts.html )

4) Other closures
• “Closures are a way you can differentiate your product”
• “We need a lot more choices in closures than we now have. And those closures need to both deliver the aesthetics and yet protect the quality of the wine.”
• “Screw caps. There seems to be public acceptance of these closures in the under-$20 segment.”


WINE PACKAGING CHANGES ALREADY PLANNED

The last question was “What changes do you see ahead in wine packaging in the next 1 to 2 years, both for your own wine, and for the industry as a whole?” The summary answers are 1) Better label design is necessary; 2) Green packaging issues will lead to, among other things, lighter-weight bottles; 3) Use of screw cap and/or synthetic cork will rise; and 4) Other non-glass packaging formats are being considered

1) Better label design is necessary
• “We are going to improve our label design”
• “We need to update our label, make it more appealing to younger consumers.”

2) Green packaging issues will lead to, among other things, lighter-weight bottles
• “Lighter bottles will reduce the cost of shipping”
• “We are hearing a lot about the carbon footprint of heavy glass bottles, something that takes less energy to create.”
• “Does it really matter to consumers what the bottle looks like? We need to think about bottle thickness changes, tapers that lightweight, and so on.”

3) Use of screw cap and/or synthetic cork will rise
• Screw caps – we’d use them more if they could go on a variety of bottles, but we’d never use them for red wines.”
• “We are going to go to screw cap on our white wines, and will use synthetic cork on our reds.”

4) Other non-glass packaging formats are being considered
• “We need to move to “greener” packaging, where there is less waste.”
• “Paper packaging has a chance now with the carbon footprint thing; I see some bag-in-box here at ZAP and I see it in the stores.”

Thanks to the winery folks who took time to answer these questions. Those of us who attended the Unified Wine & Grape Symposium in Sacramento in late January 2009 heard about these issues from a variety of experts. But from the horses’ mouths, so to speak – these interviews provide a reality check.

Zinfandel Producers Share Their Views on Marketing and Packaging at the 2009 ZAP Festival

275 wineries! Two Pavillions at Fort Mason, San Francisco! An enormous event, and almost mind-boggling. After a week of wine tastings in Sacramento, however, I was more interested in talking to the Zinfandel producers themselves than tasting wine, and frankly that was the right attitude for an event that I arrived at close to 10:30 in the morning. Soon I'l post the compilation of what's on the mind of the 22 winery owners or winemakers I spoke to regarding marketing issues right now in the wine business, and packaging issues and changes ahead. Bear in mind that many of these Zin producers are smaller wineries, so there is some distortion in the sample (ie, not representative of the wine business as a whole) but regardless of that, the dialogue was pretty consistent with what I'd heard from some of the Biggies (Gallo, Wine Group) in Sacramento last week.
But yes, I did sample some wines, and here are a few notes. Starry Night Winery (Novato, CA, which is in the San Francisco Bay Area) had a yummy 2006 Old Vine Zinfandel made from grapes from five vineyards on Tom Feeny Ranch-Russian River Valley. Two of the vineyards were planted in the early 1900's, one in 1928, one in 1934 and the last in the mid-1940's. All vines are dry farmed and produce a limited crop, which, according to the tasting notes "results in deep and complex fruit and spice flavors". To me, the cherry aroma was a standout, and the taste of pepper really came through on the back of the palate. You can buy one of the bottles from the 1200 cases they produced, for $28 a bottle. 15.2% alcohol. (And at 10:30 in the morning, that'll set you up for the rest of the day!)
In mid-afternoon, I enjoyed the 2006 Harney Lane Old Vine Zinfandel from the Lizzie James Vineyard in the Mokelumne River area of Lodi, CA (Central California). It's softened with 3% Petite Sirah, and has terrific balance of aroma and mouthfeel, and is consistent across the palate. Berries come through nicely, although the tasting notes cite a vanilla finish that I didn't personally find there. $28 a bottle, only 221 cases made. Alcohol 15.6% This wine won a Gold medal in the 2009 San Francisco Chronicle Wine Competition.

AND POSTED ON FEBRUARY 5 2009, A SUMMARY OF "WHAT ARE THEY THINKING" about marketing, packaging, and oh did we mention The Economy? ....