Happy New Year everyone! Let’s hope this one doesn’t have as many surprises with the weather or the economy. Hell, I feel great just still being here. A couple of real highlights from last year are that both Napa Valley College and Santa Rosa Junior College applied for—and received—their licenses for making and selling wine. Congratulations to both great programs. Now you, dear reader, can go out and support them by buying their products. Neither will be making giant amounts, so I don’t think Gallo and Constellation are really worried about the competition. The SRJC wine will, in fact, be made at the Gallo-donated educational winery in the Dutton Pavilion at the Shone Farm.
I’ll continue to hope that just because it’s made in small amounts, they won’t think it’s worth $40+ per bottle like a lot of small-production wineries. Remember that price is more frequently a reflection on availability and not quality. Ever notice how in the weekly Press Democrat, the most expensive wines are generally not the “pick of the week?” Or is that just a coincidence?
To clarify a point that’s been made to me by several emails regarding appellations and their use on labels, let me explain. Some people have interpreted that I meant using only Sonoma County on the label. I have been ranting and raving for a couple of years about the lack of “Sonoma County” on our wine labels and the use of only the secondary appellation (Dry Creek, Alexander Valley, Russian River). This battle is only being waged in Sonoma County, because both Napa and Mendocino, as well as Paso Robles, always use their primary appellation on their labels. (OK, so it’s mandated by law, but at least they were smart enough to get it legislated.) And, maybe they’re proud of their primary appellation, not letting their egos control their common sense, and not ashamed to put it on the wine label. Is there any other logical explanation?
According to a late October article in the Oregon Wine Press, it appears I’m not the only voice in the tunnel yelling about the use of primary appellation. One step, even above us, is the majority of the Oregon wineries that don’t put Oregon on their label. I can’t resist quoting. According to Bill Hatcher, an Oregon winery owner, “Rather, we have self-importantly parsed appellations to everyone’s backyard, while the stubborn fact remains that most consumers beyond the narrow ambit of the Pacific Northwest are largely unaware of Oregon wine.” I couldn’t have said it better myself.
In an FGI Research project regarding the notoriety of Pinot Noir, there were 972 responses to the question about where the best American Pinot Noir is produced: 31 percent said Sonoma County (catch that—Sonoma County, not a bunch of smaller appellations), 9 percent said Santa Barbara, 5 percent said Mendocino and 45 percent were undecided. Only 10 percent said Oregon. It also states that the Oregon Pinot Noir boom has really been one of overzealous investment without the sufficient market to underwrite it. Are we not far beyond? Or will this year’s short crop only postpone the inevitable?
I wonder what the inventory of Pinot Noir from the Russian River Valley really is at this point in the marketing year. I guess the moral of the story is to at least put a recognizable appellation on your label. Growing grapes and making wine are the easy parts of this industry. And just like most other industries, marketing is the key—and also very expensive. I continue to ask how many people can name more than two or three subappellations in Sonoma County. Today’s young generation has proven that geography, worldwide and locally, isn’t their strong suit.
This lack of knowledge is one of the many reasons I so strongly supported the formation of a wine grape commission in Sonoma County. It’s a legislated method to extract money from the industry to support such important functions as marketing. If left to their own initiative, little would get done in the line of marketing. I guess I can say the same about research.
Last, Mr. Hatcher wonders out loud when the Pinot Noir bubble will burst. Here in Sonoma County, we have an additional 1,600+ (16 percent of an existing 10,198 acres) acres not yet in production, and God only knows how many new acres will be added to that total in 2008 and 2009. It’s the standard farmer rule of thumb that, if somebody is making money with a certain crop, everyone will follow to create an instant surplus. How many crops would you like me to name?
In conversation with several wine marketing people at a party not long ago, they were reasonably optimistic about the current market. They felt wine was selling well but the price point was definitely moving downward. The strong market seemed to be less than $15 and most definitely in the $10 per bottle range. Consumers seem to be discovering lower-priced wines that are true values. Just because it only costs $10 does not mean it isn’t a good wine.
I recently wrote about a study done at Cal Tech that found if you think the wine is expensive, you’ll like it, and if you think it’s a low-cost wine, you won’t like it. If you’re buying those bargain wines and not enjoying them as much as your Rolls Royce palate would dictate, simply put the bottle in a bag and pretend you wasted $50 on it so you can enjoy it more. It’s called mind over matter.
Also, in regard to sales, the marketers all agreed that one of the softest markets is the high-end restaurant, a major outlet for wineries that have strived to give themselves a golden image. Restaurants consider wine as their golden egg—remember, sometimes 400+ percent markups. Maybe now is the time for Fast Freddy Franzia and his Bronco Wine Co. to fulfill Fred’s dream of having wine in restaurants that the average person can afford and, in Fred’s words, that’s $10 or less. My God, what a concept—actually having wine available in a restaurant for $10 or less that most of us can afford. (By the way that is by the bottle, not the glass!)
How about you email me with some of your favorite wines that are less than $10, and also about restaurants with whatever you consider fair? There are a couple restaurants I’m aware of that offer free corkage for Sonoma County wines. Gee, I wonder if that means actually saying Sonoma County on the label? I think I might go and push the idea of the need for Sonoma County to actually be on the front label to get free corkage.
I received a wonderful email from former Santa Rosa City Councilperson, Donna Borne, saying she actually sends postcards to wineries that don’t use Sonoma County on their label. God bless you! How about everyone else following suit, or at minimum, send an email—and please copy me.
OK it’s time for me to do my homework, so you better get busy too!
