This article was first published by brandchannel.com in 2003. How much has changed since then?

Resting on the assumption that reputation is enough, the importance of marketing has been ignored by a large part of the French wine making industry. This, precisely, is France’s weak spot.

Not following changes in consumer demand, French wine makers have missed out on a growing group of consumers who are looking for wines priced between €5 or €10 (US$6/12), which are reliable and easily recognizable. Instead the New World producers, which include Australia, the US, Chile and South Africa, are using aggressive marketing strategies to tap into this consumer niche. Their tools include strong brands, clear labeling and quality standardization. A survey commissioned last year by British drinks company Threshers Group confirms that a growing number of wine drinkers are looking for just that.

According to the study:

” — 85% of consumers are more likely to buy wine when they have been provided with clear information about it, either on the bottle or on the shelf.

— Almost one-quarter of consumers are seduced by imagery and make their purchase decision according to label design.

— 63% of consumers do not care what country the wine they choose originates from.

— Over one-third of consumers polled feel confused about which type of wine is best to buy. ” (Research conducted in UK by Taylor Nelson Sofres.)

There are several factors that can explain France’s failure to react to the changing market. First, France and the New World have different approaches to wine. “With the New World coming on the scene, there has been a shift within the industry from supply-based to demand-based marketing,” said Franck Crouzet, from French drinks company, Castel Groupe. “These [New World] producers are definitely focused on what the consumers want, and use the most developed marketing techniques to achieve their goal.”

Second, France has over 750 wine operators, many of which have limited funds, or are family run and continue to do business in the same way as they have for generations. Consequently, all too often minimum research or money is devoted to examining the changing market. In the New World, however, there are only a handful of operators — generally large companies with substantial capital — which dominate the market. In South Africa, for example, one company is responsible for distributing eighty percent of the country’s entire wine production, while in Australia four companies distribute all of the country’s wines.

Then there is France’s complicated wine classification system. The system of “appellations” for example, which includes over four hundred different categories, was created to bring out the individual characteristics of each region. But hundreds of different names for wines can become confusing to foreign consumers. “Everyone wants their village to have an ‘appellation’, and thinks that their micro climate is different from everyone else’s,” said Joëlle Brouard, head of the International Marketing for Wine and Spirits masters program at Dijon Business school in central France.

Wine drinkers may better gain their bearings with a brand name they recognize, and a type of grape they can identify, but with French wines one can choose between a Brouilly and a Saint-Amour, which are both Beaujolais wines from the same region and made from the one grape variety, Gamay. This intricate system results in incomprehensible labeling, especially for the consumer abroad.

All wines (worldwide) are required to have a certain amount of information on each bottle. Traditionally, this information was placed on the front label, and is still the case with many wines today. But it is quite an eyeful for a consumer browsing the shelf, and may not be altogether eye-catching. “The label is the first contact people have with the product on the shelf. It must therefore be simple and easy to understand but also reflect the particular personality of the brand,” says Crouzet. For this reason, many wineries, especially in the New World, have decided to put the required data on the back label of the bottle. The front can then be used to attract the consumer with colors, an identifiable logo or attractive graphics (Australia’s Jacob’s Creek for example).

Last but by no means least, comes cultural resistance. There is a tendency with many wine producers to think that France’s reputation is enough in itself, and that marketing isn’t necessary. “[In France], you have the cooperatives with the growers and their vision of the world which doesn’t include marketing. When there is extra money, they prefer to spend it on machinery which works rather than on marketing which, to them, doesn’t necessarily give obvious returns,” says Brouard. To many, the idea of joining up with other producers under a common brand name goes against a tradition of emphasizing the individual vineyard or family tradition.

But change is slowly shaking up the vineyards. Some wine producers have anticipated the evolving market place. Earlier this year, Groupe Castel created a line especially for exporting. “We created the ‘Castel’ brand to counteract the rise of New World wines: we wanted to meet consumer demand, with simple and accessible wines,” says Crouzet. The range brings together different table wines under the Castel brand name, which are divided into three separate categories according to taste: light, fruity wines, stronger, aromatic wines and richer and more complex wines; all of the bottles range in price from € 3 to 8 ($4/9).

Meanwhile, Vinival, a group of wine producers from the Loire Valley, has also created a special line called “Eat and Drink.” Targeting a young clientele, the concept is to associate wines with the appropriate food. The “fish” wine, a sauvignon, has a brightly colored fish depicted on the bottle; other whites and reds are available for poultry and lamb.

Despite these initiatives, it may take a long time for many French winegrowers to understand that (with exception to wines in the higher price range), France’s long-standing reputation is no longer enough. Patrick Hudelot, who produces organic wine in the back hills of Bourgogne, hired a marketing manager last year. He is one of very few winegrowers in his region to take such an initiative. “People think I am crazy. Can you imagine having a marketing department?” he asks. “People here have never seen this before. In France, there is a belief that you don’t need to market your wine, that France’s reputation is enough. And that way we are being left behind.”

France has a long history of excellent wine production but that is not enough to quench thirst overseas. Like their New World counterparts, Patrick Hudelot, Vinival and Groupe Castel are starting to apply the strong brand and marketing strategy that are essential to keeping their country’s wine exports flowing.     

[13-Oct-2003]

Emilie Boyer King is a freelance journalist specializing in French topics for major dailies and magazines around the world. She lives in Paris where she previously worked for BusinessWeek, Bloomberg News and the International Herald Tribune.

We probably didn’t need more proof that wine drinkers’ evaluation of wines is subjective and readily influenced by factors other than the actual characteristics of what comes out of the bottle. Now, though, we find that not only is the perception of the wine itself changed by what they think is the wine’s origin, but even that of the entire meal and the restaurant where it was served. A study by Cornell University demonstrated the power of a wine label:

Forty-one diners at the Spice Box restaurant in Urbana, Illinois were given a free glass of Cabernet Sauvignon to accompany a $24 prix-fixe French meal. Half the bottles claimed to be from Noah’s Winery in California. The labels on the other half claimed to be from Noah’s Winery in North Dakota. In both cases, the wine was an inexpensive Charles Shaw wine.

Those drinking what they thought was California wine, rated the wine and food as tasting better, and ate 11% more of their food. They were also more likely to make return reservations.

It comes down to expectations. If you think a wine will taste good, it will taste better than if you think it will taste bad. People didn’t believe North Dakota wine would taste good, so it had a double curse – it hurt both the wine and the entire meal. “Wine labels can throw both a halo or a shadow over the entire dining experience,” according to Cornell Professor Brian Wansink (Ph.D.), author of the book Mindless Eating: Why We Eat More Than We Think. [From Fine as North Dakota wine.]

Another study tested 49 MBA students at a wine and cheese reception. The subjects given wine labeled from California rated the wine 85% higher and the cheese 50% higher.

It’s amusing that they chose Charles Shaw wines (aka Two Buck Chuck) for the test, as it is perhaps the cheapest wine in the U.S. On the other hand, perhaps that makes it perfect for a blind test. Does anyone think that Charles Shaw Chardonnay would have won the top prize at the California State Fair wine competition if the labels had been shown to the judges?

This simple study has a lot of implications. It shows the uphill battle that winemakers face if their label or origin isn’t perceived as prestigious or as connoting high quality. This is a particular impediment for boxed wines seeking to promote themselves as high quality products that are equivalent, if not better, than their bottled peers. The Cornell researchers didn’t test this, but we have little doubt that had some diners seen the wine poured from a bottle and others from a box, the split would have been at least as dramatic as the California/North Dakota divide.

This research also shows the importance of wines to a restaurant. Those restaurants that stick a small selection of mass-market wines on their menu as a seeming afterthought may be missing out – the study shows that the perception of the wine carries over to the entire meal and even impacts the probability of a diner returning to the restaurant.

Source: www.boxwines.org

Wine aficionados devote their time to studying the colors, the smells, and the years of wine to distinguish quality from … not. With all of the books out there, all of the tips from experts, enjoying a glass becomes heinously complicated. Thankfully, color makes it all a little easier to understand.

While judging a wine for taste, ’smelling bouquets’ and spitting wine out can seem a little bit backwards (because, after all, isn’t wine for drinking?), it’s really about appreciating different aromas and tastes without being totally smashed. color can tell us a great deal about a wine before we raise our glasses. Tilt them instead. Pouring a small amount of wine and tilting the glass at (approx.) 45º will spread the wine enough for us to observe a span of its color… and to determine the quality of a wine in the white, blush, or red families… where trees have rings, wines have color.

The Colors of White Wines

White wine isn’t truly white. In fact, it’s a bit yellow. It can be made from any type of grape as long as the skin of the grape is removed before the fermenting process

A brownish white wine can denote fermantation from partially dried grapes. Turning brown, however means the wine is oxidised and unhealthy.

Typical of OLD dessert or wines made from partially dried grapes. Also the unhealthy shade of oxidized wine.

It is true that aging a white wine takes on more brown, but it is also true that the wine can take on barrel color.

A pale gold color is characteristic of great wines in their mature state.

Straw yellow is a common shade of wines with moderate age.

Observing a pale straw color with a bit of green, suggests a very young wine.

The Colors of Blush Wines

Rosé wines are often called ‘blushes.’ Sort of an in-between wine, soft pinks find their home here in the early stages of aging rosé wine. As it ages further, these wines can take on a bit of an orange or even brown color, though, again, brown represents oxidisation.

A typical shade for young, often immature wines.

This is the classic shade for blush wines made with short skin contact in the fermentation process.

Young wines from dark grapes vinified with little skin contact can also show hints of orange, coral or salmon.

A pale shade of red obtained by slightly longer skin contact in the fermentation process.

Young wines from dark grapes vinified with little skin contact can also show hints of orange, coral or salmon

Some blush wines takes on tawny shades with age, though usually signs of browning mean the wine is oxidizing.

The Colors of Red Wines

Finally, red wines are deep red in color. Observing a purple-red suggests a young, but more often immature wine. Ruby is still young, but aged a bit from purple-red. Using the word ‘garnet’ is classic for wines in their prime. Brick red, however, is a little fickle. Paler shades are old, but still healthy, while seeing a bit of yellow or brown suggests a wine past its time. While seeing that bit of yellow or brown at the edge of the tilted wine, it does not necessarily mean the wine is undrinkable.

Purple-red is a common shade for young, often immature wines.

Ruby wines are a more evolved but still youthful shade.

Garnet is the color word for classic wines at the peak of their maturity.

These shades are associated with older but still healthy wines.

Wines with a warm orange color at the rim of the glass during their prime maturation period.

Dark brown colors indicate that the wine is past its prime, though some old red wines are still quite drinkable.

With wine, it seems as though what you see is what you get, leaving the aromas and added flavors to be joyfully discovered. Enjoy your pursuit of finding the perfect glass.

Full Disclosure:
We are not wine experts. We are color lovers. The colors above are exaggerated to help illustrate the color changes in wines. If you are drinking a wine that is actually as bright as some of the white & blush colors above, you’re probably drinking a wine cooler… Not quite “wine.” No wine was harmed in the creation of this post, but a lot was consumed. If you’re a wine expert and we got something wrong, let us know and we’ll update it.

Source: www.colourlovers.com

Does this story sound familiar?

I am a husband, father and fifth-generation California farmer. I’m also a proud California winegrape grower producing quality grapes for quality California wines. But these days it is more challenging being a California winegrape grower than a husband and a father.

California is the fourth largest producer of wine in the world, accounting for 90 percent of all U.S. wine. Wine is California’s No. 1 finished agricultural product. There are 4,600 growers and 2,200 wineries in the state, contributing $51.8 billion to California’s economy.

With these impressive facts and figures growers should be doing well, but as I talk to grape growers in our state, many are not making a profit.

What is the problem?

Like other farmers in California, grape growers are being challenged with new laws and regulations at both the state and federal level: air, water, labor, pesticides, just to name a few … oh wait, a new one, agricultural hauling trucking regulations. These legislative issues inhibit expansion of operations, cost growers a lot of money and hurt their bottom line.

We are always happy to do our part, but it seems lately that we are doing it for everybody in the state.

California winegrape growers have been long-time leaders in sustainable growing practices. These practices include the way we treat our land and how we interact with our employees and community while staying economically viable. These governmental agencies need to be proud of what we are doing, not what we are not doing.

Glassy-winged sharpshooter, vine mealy bug and light brown apple moth … what’s next? All these new invasive pests and diseases are invading growers. With the world market and the open borders we have, growers need local, state and worldwide research on how to control and eradicate these new pests and diseases. The 2007 Farm Bill needs to address this issue.

California growers are also dealing with increased production costs. Land prices are up. Trellis materials and irrigation systems have gone up dramatically. Field workers cost 10 percent more in 2007 than 2006. Fertilizer costs have gone up. Yet growers’ price per ton has remained the same or has gone down. How much longer can growers survive?

American appellation is a huge loophole. Can you believe that 25 percent of an imported wine can be blended with 75 percent American wine and be called American? Do you think Italy would let us blend 25 percent of American wine with 75 percent Italian and call it Italian? I don’t think so. As California winegrape growers, the maintenance of our integrity and quality are vital in the production of California-grown winegrapes. As growers, we own the “identity” and “place” on the bottle. In that light, we expect that labeling be truthful and accurate. It is about integrity.

It is time for the wineries to commit to their sales increases and enter dialogue with California growers to ensure an adequate supply of fruit of the quality needed for the growth of their brands. The growers have carried the load over the last several years in lower grape prices to help the wineries weather challenging market conditions. Growers simply cannot stay in business continuing this subsidy. What the industry needs is genuine collaboration in working out formulas that provide sustainable supplies of quality fruit at sustainable prices to the grower.

What can we do as growers? Become active in groups like the California Association of Winegrape Growers and Farm Bureau. With imports invading the United States, now more than ever is the time to promote ourselves and our sustainable way of doing business in California.

By Bruce Fry.

(Bruce Fry is a Lodi winegrape grower, cherry grower, second vice president of the San Joaquin County Farm Bureau and vice chairman of the California Association of Winegrape Growers–www.cawg.org. He may be contacted at brucefry@mohrfry.com.)

Source: California Farm Bureau Federation.