Why Low Alcohol Wines still have a Long Way to go : A Brainstorming with Wine Industry Professionals

(More wine news on www.vitabella.fr) I was recently reading an interesting article in The Drinks Business that said : "The poor quality of the majority of low-alcohol wines in the UK is preventing consumers from making repeat purchases or trying other brands, according to Banrock Station." In fact, making wine has never been a simple thing. Get wine industry professionals around a table and start a brainstorming session to find a way to generate further revenues in new profitable niches.

"What about the low alcohol wine niche? "

"Great idea ! I read some articles about it and people are fed up with too powerful wines with strong alcohol content. It's a great idea!" said Eddy, the Chief Marketing Officer. "John, on the production side, how can we achieve this?"

John : "I have to ask my guys to make some tries but we already have contacts with technology companies that can help on that. It's not a problem. How many bottles to you want to sell?"

Eddy: "We have to make some plans, I have to report to our MDs on different markets where there may show an interest. I have to come back to you on that. I will write a docucument for each country to let them understand that we are able to make and see their interest. I will ask them what colour they would prefer: white, rosé or red? I will then define a pricing strategy for each country."

"OK guys, well done, great idea, I think we go into a new market that many consider as a niche but that could be a terrific market for us. Let's do it ! See you next month."

""May I just ask a question" said Martin. "What does it taste like a low alcohol wine?"

"Don't worry Martin on that point, we have many studies. We just have to make sure it tastes like our end consumers want. I am sure John with his team will do his best to achieve this."

Martin: "No I just tell you this because my wife and I are fed up with too strong and powerful wines and we are very interested in tasting a low alcohol wine because we finally can't do without the magical part that brings a bottle of wine."

John: "Martin, do you like 9.5% german rieslings?"

Martin: "Yes we love them so much, so many different tastes, the ageing potential is spectacular and the balance is always magic."

Eddy: "And apart from the too strong alcohol content, do you like the aromas of some powerful red wines?"

Martin: "Yes of course but at the same time we are keen on some red wines with strong alcohol content from Australia or South of France because, in these specific wines, we do not feel this alcohol. When the balance is great, it is only when you get to the label that you understand the wine has a strong alcohol content."

John: " So low alcohol wines are exactly that. You get the aromas you like but you do not suffer from a burning alcohol. Does that answer your question?"

Martin: "Yes, regarding the aromas but I still miss the points regarding Balance and Magic..."

(More wine news on www.vitabella.fr)

Darling…Be Natural, take your clothes off ! Show me your Terroir.

(More wine news on www.vitabella.fr) I was recently reading a comment regarding the new documentary "Wine from Here" about Natural Wine in California. The title of this article was: "Wine From Here documentary proves terroir doesn't matter" (read here). In fact, I find that all these very interesting interviews put on the website that promotes the film www.winefromhere.com are telling a completely different story. What Paul Draper (Ridge Vineyards, Santa Cruz Mountains), Ted Lemon (Littorai, Sebastobol) and many others say shows us that natural winemaking enhances taste and pleasure because it enhances the major assets of each vineyard such as soil and grape varieties' expression. As Shawn Robinson (Renaissance, Sierra Foothills) and Mike Dash (Dashe Cellars, Oakland) put it : "Natural wines give more back in terms of individuality (...) the composition of the flavours is more complex" or "Natural wines are more interesting, distinctive, more complex ".

The sense of Place is not dead, The sense of Place has a new life. And Terroir is not dead, Terroir has a new life. Are natural wines the only ones to express the Place and the Terroir at their best? Not at all but they will help the producers who used to put too much "make up" and "clothes" in their wines to understand if their own place is excellent, good or bad. At a first stage, with a new "natural" approach, winemakers will get a better sense of their place. But the second stage will be about Terroir. What is terroir in fact? It is the meeting of Soil, Climate and Weather – that will shape the vintage- and of Savoir-Faire. So, if we consider for example France, Italy or Germany - where this notion is very important - each appellation is made up of a terroir or a multitude of terroirs. It took centuries to define those terroirs in these countries and it will take time to find all the terroirs that exist in the world. For sure, California can boast about great terroirs but will certainly find many others with a more "natural" approach. Like everywhere in the world.

So, in my view, the point of this documentary is not that terroir doesn't matter. In fact, Terroir matters and has never been so important since the "natural winemaking" approach started to develop. My point is not to say that Natural wines are the best. Why? Because, before saying that "natural" wines are the best, we should know what we are talking about...What "Natural wine" means exactly? Is "Natural" the best adjective to define these wines or should we prefer "naked", "organic" or any other name? My point is that after having put so much "make up" and "clothes" in wines, there is a time when we would like to see (and drink) them "naked" or "natural". And maybe some naked (or natural) ones will be impressive. In fact, this is already the case: Just try Littorai wines (young or some 10 years old) and you will understand that these wines are among the best in the world.

In fact, those interviews show that natural winemaking helps winemakers to get a better definition of "their OWN place in their OWN wine". As Gideon Beinstock, Winemaker at Clos Saron (Sierra Foothills) puts it: "I don't care if it's better or worse or different than Romanee Conti (...) but it does express the special life and the special meaning of this place." In fact, naturally working does not make your wine "terroir oriented", it just makes it "place oriented". If your vines are planted in a poor location, natural winemaking won't help you. Or, at least, it will help you to understand that your place is not as good as the one a few miles away. But winemakers need time to reveal the most beautiful terroirs as it also requires a savoir-faire that some "natural" winemakers are still learning. Soil, climate, weather and savoir faire make a terroir. Everywhere in the world. For too long, Make up and clothes have just hidden this to make standard wines. Darling, be Natural, take your clothes off! Show me your Terroir. (More wine news on www.vitabella.fr)

Chateau Palmer, Domaine Leroy…Farce and Deception at Fauchon Paris

When a wine expert at Fauchon recommends a 500 euros wine, should you trust him? This is the conclusion we could draw from the documentary "The trouble with experts " that will screen on CBC in Canada on Thursday 29. I only watched the 2mn presentation but I can figure out the full content for one simple reason: I was part of this group on that night at Fauchon. (click here to watch the presentation)

This documentary from Josh Freed will show that "experts" can not tell the difference between a wine at 30 euros and another at 500 euros. Being the only person in the group to have constantly repeated that the wines we were served did not correspond to the label they were showing us, I would like to clarify a few points about this tasting held at Fauchon a few months ago.

1) Fauchon invited us in Paris (place de la Madeleine) to enjoy some great wines including a first growth classified Bordeaux wine. We never saw a first growth being poured into our glasses.

2) Camera, sound ... Everything is recorded, the team makes us sign a document to get the full image rights.

3) Fewer people than expected showed up, so we had to sit closer to each other. Some people from Fauchon were called at the last moment to fill empty spaces. No renowned wine expert at sight: wine professionals (but that does not make you necessarily a wine expert), wine lovers and people who were keen on discovering this wonderful world.

4) An explanation of the tasting was given by a wine expert (Frederic Brochet) from Fauchon. Two glasses will be served: the first will be a 30 euros wine and the second will be a 500 euros wine. So a first glass of red Burgundy was proposed. This expert (in fact he was presented as an expert and might be the only wine expert from the group) introduced shortly this wine. Rapidly we were invited to taste it. Immediately, the Canadian reporter asked us : "So What do you think? ". I replied that, of course, it was good, elegant, delicate, it was the kind of red Burgundy I really appreciate. Then came the second glass and the expert from Fauchon continued: "Here is a great red Burgundy from Leroy that comes from a highly reputed area and has an exceptional ...". This speech continued for several minutes to explain the uniqueness of this wine. And then immediately at the first sip, the second glass had much less elegance, complexity and refinement than the first one. This second wine was good but did not show the same complexity. The camera focused on some of us, including me: "So which one do you prefer?". "Both are good" I replied, and indeed I explained what I considered good in each of these two wines. But I also explained to the reporter and my neighbors that I felt the two wines had been swapped. Indeed, as seen in the short presentation for the documentary, the wine expert from Fauchon had poured the Mercurey into an expensive bottle from the famous wine estate, Leroy. The reporter replied to me that what I was saying was really weird and that we should not waste too much time and should continue to taste other wines.

5) After tasting the next two wines (a chateau Palmer bottle was filled with an unknown red bordeaux wine), the deception was clear and it was easy to understand that the 2 new wines were also swapped. My neighbor, who was discovering great wines, told me she preferred again the first wine and we started a long conversation about this. We were reported to lower our voice as maybe the reporter was feeling that around us people started to have some doubts. The reporter continued: "What wine do you prefer? The first one or the second? "At this point, how can we imagine a single individual in a group of ten people that he/she does not know at all - and which fully trusts the wine expert from Fauchon - to speak in front of the camera and say: "Well the 500 euros wine is not the one you served in the second glass! "The wine lover must have a real courage to speak up and say these words in a group who has been told "This 500 euros wine is unique and exceptional for such and such reason".

Till the end of the evening, I told the reporter that the wines had been swapped. I got no answer and, for me, it was a real deception. But I realized with the short video of the documentary that there are two deceptions actually. The first one is that it was organized at Fauchon, a renowned place for gastronomy and wines. The second is about the title "The trouble with experts" because real wine experts were absent on that night...

After having contacted the head of communication at Fauchon, it appears that they are the first victim of this farce. The wine expert, Frederic Brochet, who conducted this farce is not working at Fauchon anymore. But the image of Fauchon may be tarnished by this documentary which shows bottles that are being swapped and also shows regular Fauchon customers being trapped in this ridiculous farce.

Bordeaux-based négociants start delivering their 2009 Bordeaux. And also Hommage à Jacques Perrin 2009 from Chateau de Beaucastel.

On James Molesworth's blog, the Bordeaux and Rhone Valley wine specialist from the U.S. magazine Wine Spectator, we recently discovered a big news: "Château de Beaucastel's Hommage à Jacques Perrin Grande Cuvée Cracks the Place de Bordeaux: The Rhône wine becomes the first non-Bordeaux French wine to be offered by Bordeaux-based négociants."

This is a very important news in a market place that was generally closed to only wines from Bordeaux. In fact, if it is the first time for a French but non Bordeaux wine, this is not the case for some other great international wines in recent years : Chile's Viña Almaviva and Opus One from California, both joint ventures of Château Mouton-Rothschild or both super Tuscans Masseto and Solaia are already offered by the same pool of negociants.

In fact, if Hommage à Jacques Perrin can not, in any way, deny its noble and great origins from Chateauneuf du Pape, it is true that the famous Chateau de Beaucastel has much in common with Bordeaux greatest Chateaus. Its history dating back to 1697, the uniqueness of its terroir located at the northern limit of the appellation, the quality and fabulous ageing potential of its wines... all these remind us of the essential qualities of Bordeaux greatest wines. We should also note that Robert Parker has been covering Beaucastel for many years and gives the best scores as he does for Bordeaux most coveted wines.

As James Molesworth puts it, "The system typically favors the biggest names with the longest histories and tends to insulate the top châteaus from the rigors of working the marketplace themselves." It is in fact part of the answers given by the Perrin Family: "The main reason we decided to put some Hommage on the place is because we are always saying 'no' to people who are asking to buy Hommage, as demand for the wine is always much more than we have," said Marc Perrin. "The place de Bordeaux's job is to allocate wines, so it frees us from that. Instead of spending time on the phone saying 'no' to people, we can concentrate on the vineyards and wines."

With 6000 bottles produced - only in great vintages - Hommage à Jacques Perrin is a much coveted wine. As a conclusion, James Molesworth mentions the words of Perrin on the secondary market: "Also, on Hommage there has historically been a secondary market as some people don't drink the wine, but sell it again. This is very unorganized and provenance becomes an issue, which can be damaging for the reputation of the wine and for customers. The place has a way of cleaning that up."

England, don’t be shy, be proud of your bubblies, go your own way ! (Why « Britagne » may not be the right generic name for an english " champagne ")

(More wine news on www.vitabella.fr) Finding a name is not that evident. Take the example of a group. A bunch of people are brainstorming for names. The band members are already so deaf they keep saying, "The who?". Finally, someone suggests the Who as their name. And the legend of the Who band was born. When it comes to choosing a generic name, you may think twice before promoting it. The recent release of a sparkling wine from the British producer Coates and Seely as ‘Britagne’ has already started a debate in England to find a generic name for the British bubblies. The clever marketing approach of Christian Seely, Managing director of the wine division of AXA Millesimes and also the co-founder of Coates and Seely, was to bring out the ‘Britagne’ name and to see how the english community would react. In fact, this debate is necessary if english sparkling producers want to be recognized for producing high quality bubblies. But the road is still long if you consider generic names such as Cava or Spumante that already have some history but still suffer the comparison with Champagne even if, in terms of quality, tremendous progress has been made over the last 20 years.

Is "Britagne" the right generic name for english bubblies? The answers to a few questions could help drawing a first quick conclusion:

1) Is this name easy-to-understand ?

2) Is it hard to pronounce ?

3) Is it meaningful?

4) Is it similar to competitor’s names?

5) Is it emotional ?

6) Is it visually evocative, does it create a mental picture?

7) Does it carry the product qualities and values?

8) Does it empower, engage or enlighten?

A great name is a strong asset for a powerful organization. When you select an uncommon name, it’s unlikely that consumers will confuse your product with something similar. In the industry, most companies don’t focus enough attention on choosing a memorable name. Typically in the industry, people closest to the product development effort are the ones proposing the candidate names. This usually leads to overly "technical" names focused on what a product does. In our example, the estate came up with the "Britagne" name because, in their mind, the wine could be compared to Champagne even if it is "Brit". Great product name in fact for this estate that gained and will certainly continue to gain much PR from this name. But a great product name does not mean a great generic name. "Britagne" will make the Coates and Seely's production recognizable among the rest of the competition but "Britagne" may not be the right generic name that english bubblies need. "Britagne" will always be seen as a play on a French word giving the image of English imitating the French. Unlike the drug industry, where finding a generic name means finding a name for a low cost version of the more expensive brand name product, english bubbly producers must find a generic name that should help them to reinforce the image of a high quality and a unique production. Distinctive from the Champagne name, this generic name needs to create its own environment. English bubbly should not be a "me too" wine, it must be a singular wine with a specific origin and taste. The generic name "Britagne" may fail in that attempt.

(More wine news on www.vitabella.fr)

Andreas Larsson, Best Sommelier of the World: « First Growth Bordeaux Wines are just a Memory »

(More wine news on www.vitabella.fr) The international Wine Fair Vinexpo 2011 came to an end and First Growth Bordeaux wines have not yet disclosed their En Primeur 2010 prices. This interview with Andreas Larsson, Best Sommelier of the World, gives a unique opportunity to get his opinion on this En Primeur Campaign as well as his view on the future of Bordeaux wines.

What do you think of the prices for En Primeur 2010 Bordeaux wines ?

Andreas Larsson: " Bordeaux delivers some of the best value in the world, such a treasure of great wines at moderate price levels. Unfortunately first growths are just a memory. The last vintage I bought was 2004. Today nor I or my restaurant or my clients can afford these wines. I am sure those chateaux would love to see their wines being drunk in restaurants. However there are only two kinds of clients who can buy these wines: the Very Rich and the Ultra Rich people. "

What do you think of the 2010 Vintage ?

AL: "It is too early to me. I do not consider myself capable of judging unfinished wines, six months after the harvest. I prefer to taste the wines when they are finished and available on the market. But I am sure it will be a very good vintage overall. The importance of the vintage is less evident than 20 years ago as good chateaux can produce excellent wines every year. And my job is to find the best wines from the best producers regardless of the vintage. I am not a wine critic, I am a wine lover.".

What is your view on the future of Bordeaux wines ?

AL: "It is a wonderful region with an unlimited potential. So many talented people and such an unlimited potential! It is one of the few regions in the world where you can make modern and concentrated wines and yet retain a good deal of freshness, a moderate level of alcohol with a unique quality of tannins. I simply love Bordeaux and apart from its historical reputation, I regard it as young, dynamic with so much to discover."

(More wine news on www.vitabella.fr)

Monsieur Robert Parker, Welcome on board of this EP2010 Bordeaux First Class flight! Please Fasten your Seatbelts, Turbulence ahead…

(More wine news on www.vitabella.fr) (This is an executive summary from an exclusive VitaBella Luxury Wine report - From Guillaume Jourdan)

Version française: Cliquez ici.

Raising the price of a wine is not enough to make it a "luxury wine". Chateaux should also add a strong support to reach their ambitions. To my knowledge, I do not know any area in the luxury industry, except wine (excluding champagne), which strongly raises its prices but does not add any significant support to its brand. If the bottles of those famous chateaux are sold en Primeur at record prices, they will then have to go through the whole process (including all the considerations about margins) to reach the tables of wine lovers who will finally say to the sommelier: I want that bottle. With prices as high as those announced in recent days, this process is likely to become longer and longer. And some bottles may never find consumers... An exclusive VitaBella Luxury Wine Report analyzes three possible types of crisis and some measures chateaux should consider now.

"Bordeaux guru" Robert Parker recently said "it would be a mistake" to increase prices again. "If they come higher than 2009, we're going to have a big, big crisis" he said. He recommended to sell the 2010 vintage 10 to 20 percent lower than the 2009 vintage. He also said he was sad to see in his country, with a "weak dollar", the loss of market share for Bordeaux wines on restaurant menus and in wine shops as the prices seem too high."Bordeaux is the epicenter of the best wines in the world and I hate to see the image damaged by the fact people tend to think it's too expensive"."Bordeaux is focused too much on the wealthy Asian market" Parker said. "Despite the fact that China has so many wealthy people, it's a very dangerous game if they raise prices, because the world economy is very, very fragile."

How could we analyze this situation?

1) "The emergence of a bubble" : Will an increase in the price of 2010s lead to the emergence of a bubble or are we already "in the bubble"? In fact, in my own experience, when I start reading articles from experts who explain the emergence of a bubble, this usually means that the existing bubble will burst very soon... My personal view is that we are already in the bubble Robert Parker is talking about. This bubble developped over the last few years with the strong price increases and with the speculation on some big names (Lafite Rothschild...). In fact, I believe the emergence of the bubble is not in front of us, but behind us.

2) "If they come higher than 2009, we're going to have a big, big crisis." Crisis, but what crisis ? Three types of crisis could be defined:

- The crisis of the "mid-range price" wines: Unfortunately as we can see in many industries, the mid-range market is suffering terribly. Many Chateaux, which are part of this mid-range market, have increased their prices dramatically. The crisis described by Robert Parker will have a direct impact on those wines. Regarding the few top wines, adding 100 euros to the final price won't make any difference.

- The "transition" crisis : The world of wine is changing with an increasing volatility and uncertainty on this market. Chateaux must adapt. There will be turbulence as in any industry that is experiencing significant changes in its own environment. If, on one hand, there has never been so much uncertainty, on the other hand there has never been so many opportunities. New markets open and they are buoyant. Faced by this apparent paradox, top chateaux must now consider that uncertainty is a constant and will have to change how they plan for the future. Change is a continuous challenge in the corporate world. Top Bordeaux wines are now experiencing the same and should prepare for turbulences. Financial markets have seen a tremendous increase in volatility over the last 20 years. It will now happen for top Bordeaux wines. What did financial markets do? They adapted to volatility. Top Bordeaux wines will have to do the same and adapt to this new environment.

- The "counterfeit wine" crisis: With soaring prices, counterfeit art has been around for centuries. With the rising prices of wines in the 70s, counterfeiting has grown. The recent price boom may lead to an explosion of fakes. And like in art, the ones which will be mostly impacted will have all the ingredients to appeal to counterfeiters: volume, international recognition, rated among the highest. And like in art (art counterfeiting generates an illicit trade valued at about € 6 billion per year), fake wines will be increasingly difficult to detect. Think about it: over half of the art deco furniture (sold at high prices) in circulation could be false...

3) Some ideas to be successful in this new environment

- Lowering prices as would recommend Parker with a drop of 10% to 20%? It is actually too late. And if, in fact, we are facing a big, big crisis, I would have some doubts about the significant impact that a reduction from 10 to 20% on the 2010 En Primeur prices could have.

- Thinking beyond scores and supporting the brand like champagne houses have done for 30 years. At these price levels (unheard of in Bordeaux), only referring to the score of a renowned expert is not enough to explain the price of a wine. It is a fact that a great score confirms the exceptional quality of the wine according to the expert's point of view. But at the price levels achieved in recent days, the wine lover expects something else that is still rarely proposed today. Champagne houses are doing this very well and great champagne can be sold at high prices (with a high volume) through an effective marketing and communication approach.

- Acquire new competencies : The world we live in today is more volatile than ever. What the future will bring appears to be anybody's guess. In fact, the future is taking shape around us and by taking a closer look at the changes in action today, we can predict what the world of tomorrow will be like. Top chateaux must have a look at the forces that are dramatically reshaping the world of luxury wines and consider what to plan ahead to reinforce their positions globally and build stronger brands. Mastering global communication and brand marketing is part of the skills they need to gain if they want to adapt to this new volatile environment.

(More wine news on www.vitabella.fr) (This is an executive summary from an exclusive VitaBella Luxury Wine report - From Guillaume Jourdan)