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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.

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