February 28, 2008

Well if Paris Hilton likes it…..

posted by Annie in Wine Industry, Wine

Remember when wine came in a bottle? I totally do. Do you also remember how companies used to market their products based purely on quality and originality? I definitely do. It seems these days most companies simply need to get a pop star or professional athlete to say they dig the product and boom - sales!

Let us address both my questions.

#1. Some guys in Germany came up with the idea to start selling sparkling wine in a can. Thus - Rich Prosecco. It’s definitely going after the club scene and wine cooler consumer. Though wine has been available in box, bag, and jug form for years now, there is something more off-putting about the phrase “let’s crack open a few cans of Prosecco tonight!”

Now, I’ll be the first to admit that I rocked the Franzia in college. Everything has a purpose and a place. Its inexpensive, readily available at grocery stores, and easy to open. The purpose of Rich Prosecco is similar to said boxed-wine, thus quality is probably not super important to the consumer who will be drinking it.

#2 Rich Prosecco has also signed a sponsorship deal with Paris Hilton, who stars in their marketing campaigns. Painted in gold. Sans pants. The campaign was launched in December and now every search result for “Rich Prosecco” in Google is some commentary about her. (If they were aiming for buzz, A+!) Us poor consumers - we aren’t even given a chance to evaluate the product for what it is before being hypnotized by celebrity and sensationalism. But really, Paris Hilton? Didnt she just get a DUI?

Most likely the product will do well. (And I bet Paris will have much to do with it.) Perhaps we do need a good wine-in-a-can to create some variety in situations where a glass of pinot noir just isn’t appropriate. Or maybe this will spur interest in consumers to try out real Prosecco and learn more about the tradition and culture in general. (I know many of us would love this to happen!) After all, they do mention on their site that Prosecco is made from “the noble Prosecco grape.” Baby steps people.

Since the product is not yet available in the US, I was unable to research the product. Has any non-US Snoother out there tried it? What do you think of it?

February 14, 2008

Bye Bye Mom and Pop Wineries

posted by Annie in Wine Industry

A new study came out from a bunch of advisors and bankers saying that 51 percent of Western U.S. wineries will transition to new ownership in the next 10 years. Because of retirement, increasing competition for sales, and demand on marketing, it seems that founders are starting to turn over the reigns to larger companies that can handle the difficult business aspects of winemaking for them.

This says a lot - both about the wine industry and the state of the world. Most of the California, Oregon, and Washington wineries started after 1975 and the majority of them are still owned by the original founders. With that in mind, this transition makes sense considering their age and maturity. Older winemakers want to move away from a business owner lifestyle and pass their business on to the hands of someone with a sure-fire way of meeting the needs of the industry.

However, this also means that with the larger companies owning more and more of the smaller brands, the industry will become a lot less diverse in terms of who’s charge. Who is to say that the quality standards and traditions will stay in tact once larger management is in control? Will this trend lead to the Barnes-And-Noble-ing of the wine industry?

There are many large companies that run smaller brands now and we just don’t know it. Would the wine really taste any different if your neighbor’s grandfather’s cousin’s friend wasn’t calling the shots? Or, will this transition allow you guys in Virginia to buy wine at your local store from wineries that have never been able to ship to the east coast?

I guess for me, I don’t want to think of those small wineries I’ve visited in Mendocino, where the tasting is in the old barn and the family dog sits at your feet, being run by a company who’s got a banner up in their office that says “is This Good For The Company” (a la Office Space).