New World Wines in Our New World Economy
Chris Cunningham
Posted 12/9/2008
New
world wines in our new world economy
Wine and spirits are typically sold in the same
stores, but the customers are not the same at all. The difference is brand
loyalty. Spirits consumers are extremely brand loyal, perhaps as a by-product
of where spirits are most often consumed: in bars. The whole bar atmosphere
encourages call-brands, thanks to spirits companies’ multi-million-dollar
branding campaigns. These days, most consumers order cocktails by the base
spirit: a Grey Goose martini or a Ketel One cosmo. Doing so sends a signal to
your friends—that you have class, (you didn’t name the super premium spirit),
but that you’re not cheap, (you didn’t go for bottom shelf).
In contrast, many wine drinkers love trying
different varietals from different countries. True wine lovers are always
willing to experiment. There are exceptions of course, but most people choose
variety: Pinot Noir tonight, Sauvignon Blanc tomorrow. And within their
favorite varietals, wine drinkers don’t get tied down in brand rivalries.
Nobody proclaims himself a Patz & Hall Pinot Noir drinker and says he’d
rather die than drink Williams Selyem’s Pinot Noir. That means wine lovers
often adapt to a difficult economy more easily than spirits drinkers. When
money is tight, people don’t give up drinking; they trade down. For a spirits
drinker this can feel like slumming. A wine drinker, however, will shrug and
look for great value in a different price range.
For example, consider Sauvignon Blanc, one of my
favorite varietals. Sauvignon Blanc is one of the world’s greatest food wines;
it’s crisp and refreshing, and when it’s not oaked it seems to go well with
just about anything. While people buy it by the case, making it a little more
price-sensitive, no one can stock up too much because Sauvignon Blanc is best
when fresh.
Sauvignon Blanc grows well in many places: France, New
Zealand and, of course, California. In economic boom times, people
line up at wine shops for brands like Rochioli, Duckhorn or Cloudy Bay.
These wines might cost more than $30 a bottle, but they have the pedigree to
demand it. These days, though, it’s easy to switch to a Sauvignon Blanc that’s
less famous and costs a lot less. You can look to countries like Chile:
Veramonte and Los Vascos are two good value-oriented brands. Or seek out a
relatively unknown Sauvignon Blanc from a great region, like Teira Sauvignon
Blanc from Dry Creek
Valley, a cool part of Sonoma County
that’s good for the grape. Teira is made by a small family winery, and the fact
that they don’t have to buy their grapes from elsewhere keeps the price down.
If Teira were vodka, owner Daniel Donahoe would
have a real problem selling it. Consumers would say, “What’s this Teira stuff?
Where’s the buzz? Who’s the mascot? Do any rappers or models drink it?” He
would have to spend a fortune on marketing.
Fortunately, wine lovers don’t think that way.
They’ll see a Dry Creek Sauvignon Blanc at a good price. They’ll see it’s from
a small family winery. And they’ll put it in their shopping carts. For wine
lovers, brand and image are secondary. Instead, it’s all about quality and
value. That’s what drives me to keep finding great wines that people love, even
if no rappers or models are drinking them—yet.
We have really tried to hit a
variety of regions and pricepoints, here on the Wine & Spirit club site. I
f you don’t see one of your favorites, just let me know and I will do my best
to find it for you and pass the savings along to you as a Wine & Spirit
club member. You may want to begin with the previously mentioned Teira
Sauvignon Blanc right here on our website.