At the recent The Wine Gang Christmas Fair I had the chance to taste lots of wines and meet importers and wineries from around the world. One of the ones that stood out for me was a small online retailer looking to sell wines in a novel way: FindWine.co.uk

Most wines in this country, whether in the supermarkets or independent merchants, are sold mainly by country. They might then be divided by region, price or even style, but the first arrangement is almost ALWAYS by country. Most (surviving) online merchants have therefore taken this format as well, and although you can usually filter by many different criteria, country still dominates the thinking.

The other thing most retailers have in common is that they generally list a larger range of wines that may then be categorised or tagged with tasting or buying information to help consumers decide between them. The thinking is, if you give consumers a broader range of choices, they’ll find something they’ll like … and buy.

The truth is, many consumers are not looking for anything too specific, and in fact are often put off by too much choice. They want a good deal, and a recommendation of a ‘good’ wine, so may well leave without buying anything.

FindWine decided, instead, to create a list with only 54 ’slots’ that represent 6 different price categories across 9 different ’styles’, and find just 1 wine that is a good example for each. The prices vary from under £5 to £15+ and the list of categories includes “zippy” whites as well as “soft-isticated” reds, so should appeal to lots of consumers.

I think what these guys are up to is very interesting, especially as their model allows them to buy good quality wines in small parcels so they can keep things fresh and change regularly. All we need now is a bit more interaction and visibility from the faces behind the business to demonstrate their passion for the wines and give us confidence they are choosing interesting wines for these ’slots’.

On that note, watch this short interview I recorded at the show with John Critchley, one of the guys behind FindWine:

If you have used them, or tried their wines, do let me know what you think of their model and their wines. Is anyone else doing something similar?

(Update: I apologise to Mike Howes as this is in fact John Critchley, Mike’s partner at FindWine who I identified incorrectly in the video)

I’ve been meaning to write about this for some time, I even drafted a post, but recent events have prompted me to complete it.

What is a single tasting note worth?

Ryan Opaz of Catavino recently asked this question on twitter after a discussion we had, and it still has me thinking.

I suppose one could argue that tasting notes are worth exactly what you pay for them. In most cases, such as blogs, wine social networks and twitter, the answer is NOTHING. They are free! They are given away as they are shared by those tasting wines mainly for their own enjoyment.

But this is only part of the story. There are those sites that do charge to give you access to information such as tasting notes. In addition, even if consumers are not paying for tasting notes, that is not to say they are not “worth” something to someone.

Subscription Sites

There are sites where some of the key ‘value’ are the tasting notes on offer – not because they are tasting notes as such, but because they are buying advice (e.g. The Wine Gang) or “insider information” on the potential future value of premium wines (e.g. JancisRobinson.com on En Primeur)

There will always be a small number of people willing to pay for these sites to get this information rather than searching through multiple sites or waiting to personally taste wines they mean to buy – which may not even be possible. The question is whether there are enough of them to make a site profitable.

Social Networks

On the other hand, there are many social networks out there (e.g. Snooth, Adegga, etc.) where the tasting notes themselves are free content. They still represent value for people, but this is exchanged for attracting more friends & followers or becoming known as a reliable expert. The value is in social recognition, something some might call Whuffie or ‘Social Capital‘

And then there is the law …

What prompted me to write this today was the Decanter story that a journalist, Martin Isark, is suing Majestic for using his tasting note to promote a wine called “Cuvée de Richard Vin de Pays de l’Aude”. He wrote a note which apparently included the words “incredible value” in a newspaper in 2001 – and apparently Majestic have been using those words, attached to his name, ever since to promote subsequent vintages. So now, he is claiming £50,000 in damages for “‘false endorsements’ and ‘infringement of copyright’” to get them to stop according to the story (NB. I’m no lawyer, I’m only reporting information available on other sites).

Whilst I agree that the note is [arguably] false endorsement if they do not clearly show it was for a (much) older vintage, it makes you wonder how much Martin Isark thinks that endorsement is worth if the “damage” is £50,000 (as far as I know the UK law does not allow for punitive damages). I’m sure that Majestic will have sold some additional bottles of the back of the note, but that would be a LOT of bottles. And what about the benefits to Mr Isark (who, I must admit, I had not heard of before this incident)? He has had his name promoted to thousands of Majestic customers over the years – could he not have made something positive of this, offering to review (accurately and honestly) future vintages or more wines?

So, the question remains, how much is a tasting note worth?

Like any content, tasting notes have value and with the right ‘context’ there are ways to make them generate money for someone – let’s just hope it isn’t all for the lawyers, but for wine writers and drinkers instead!

[full disclosure: I am married to a lawyer, and benefit greatly from the good work that lawyers do ]

[UPDATE 20/11/09 14:23: On closer examination, Martin Isark answers the question on his website. The answer, at least for Martin Isark is: £15,000 PLUS 2% of sales as a royalty payment. This is astronomically high, and also makes one wonder about the potential ethical issues of journalists receiving royalties on related sales. Of course, he can name whatever price he wants, but I wonder whether anyone would really accept this value as realistic? If so, I need to start writing more tasting notes ]

[UPDATE 20/11/09 14:27: inserted the word "arguably" in para 9 erroneously missed off original post!]

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The Wine Gang

[Update: it has been pointed out that my title, written in haste, is a bit unfair. I'm not going to change it, but please treat it lightly. I was intending to jokingly refer to fear of 'gangs' not to suggest one might actually fear these lovely people ]

What if you were a well respected wine industry journalist or commentator and you tasted literally hundreds of wines a month, but your main paying gig (newspaper, magazine, TV show) only gave you time and space for a handful? What would you do with all the rest of those notes, impressions, events and connections?

Well, one answer is to blog about it … but I would say that! That’s a story for another post.

Another is to put them together in handy newsletter and sell it to wine lovers around the UK and the rest of the world. The problem is that the Paid Subscription model is either dead or on critical life support.

However, The Wine Gang are attempting just that. The ‘Gang’ consists of well known names such as Tom Cannavan, Olly Smith, Anthony Rose, Joanna Simon and Tim Atkin. Each month they publish a newsletter with around 200 tasting notes for an annual subscription for consumers of £20.

What marks this out for me?

It is presented in a way that is actually useful to the average consumer.

Instead of being a collection of hundreds of tasting notes of wines by some sort of ‘theme’ like region or style, these tasting notes are arranged by retailer or importer. They are grouped so that you can reasonably put together a shopping list of wines to try and have some chance of actually getting them easily, and they also recognise this by making the report printable so you can take it to the shops with you.

Ultimately, unless you are a real wine fanatic, you want what you read about on the internet to educate and inform your own drinking, so it really ought to be focused on what you can buy – or at least let you know where you can source it.

The Wine Gang newsletter also includes a few handy summaries in their different “Bunches of 5” lists from each newsletter, which not only has the usual ‘best’ groups, it rather unusually also includes “This month’s shockers” – always a favourite read of mine.

I do have a few issues with the site;

• It brings together some of the top wine communicators in the UK and all we get is one article and the tasting notes. Where is the personality?
• There is little interaction with readers. In this era of ’social media’ it feels old-fashioned and aloof
• In a market like the UK that is very price-driven, it needs to communicate better how the “investment” in a subscription can be repaid
• It would benefit from a broader range of content such as audio, video and images to bring the content to life
• The site, and its contents, are not well publicised enough and are hidden from the main ways that consumers will find it – search engines

The question is whether consumers will be prepared to part with their cash for a newsletter when so much similar content is available free?

That remains to be seen, but I think that if the personalities behind the site could step forward a bit more, it would have a reasonable chance.

It does, once again, raise the interesting question: What is a Tasting Note worth?

I will try to address that question shortly.

Disclaimer: Several of the members of The Wine Gang are personal friends as well as colleagues. I have worked in collaboration with The Wine Gang in a professional capacity, and will be sponsoring an upcoming promotion, but these are my personal views and I have been a paid subscriber of the newsletter since the first edition.

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Unfortunately this isn’t as exciting as it might first appear, but it has potential, so let’s call it titillating.

I was sent a link to a soon to be launched wine company, excitingly called Naked wines. Unlike some other recent developments in nudity and wine (see http://www.slurpswish.com/ also known as the Naked Wine Show), the site does warn you up-front (so to speak) in their only Terms & Conditions that “Nudity is optional”.

The main thing that caught my attention was the fact that this site is recruiting 100 “tasters” to receive 3 bottles of FREE wine in order than they can taste and review them. This is, at least I believe it is, a means for the new company to select a range of wines that really appeal to their target customers. That is a great idea.

There is a rather questionable mission statement of sorts on the site that says:

… to cut to the chase, we believe that UK wine drinkers are being ripped off.
How? There are far too many over-priced, over-rated wines wrapped up in ‘The Emperors Clothes’ i.e. mediocre wines tarted up in fancy packaging.

Of course I would agree that there are many wines that do fall into this category, but “fancy packaging”  is not the main fault, in my view over-reliance on price promotions is, and there are no guarantees about pricing here. They seem to be creating an online retailer, and therefore a form of mail-order business, and fancy packaging doesn’t play nearly as big a role here as it does on supermarket shelves. At least the wines are being selected at least in part by consumers, so hopefully the wines themselves will be worthwhile drinking.

So, these 100 people have a great deal of responsibility to carry. Who are they looking for, and what are they going to do … and for whom?

No idea!

I thought I would try to find out a little more about this company and what they will actually be doing. Unfortunately, there is no information on this available anywhere on the site.

Being a curious type, I decided to sign up to their site. I was asked a few very basic, and slightly leading, questions about my age, wine buying habits and interests, and told that my application would be reviewed and then told if I am selected (I did get a £40 voucher for my trouble). I’m not sure how what they asked for would really differentiate one applicant from another. In fact, I eventually found out that they had already filled all their places because of an “overwhelming response” which to me implies that since they have not taken the form offline, what they are doing now is simply building their database!

What concerned me is that they are asking for quite a lot of information about the consumers, whilst providing absolutely nothing at all about themselves. Would you be happy to hand over your details to this stranger? There certainly isn’t a privacy policy statement that I could find.

Naked wines might have an exciting new model to offer, it shouldn’t be too much to ask that a company setting out to use the internet to build this might just provide some details about themselves, should it?

Anyway, watch this space, and we can hope that recent economic problems do not stop this business from doing something new.

===

Since I first started writing about this, I have read on Alastair Bathgate’s excellent wine blog “Confessions of a Wino” that one of the people behind Naked wines is Rowan Gormley who used to run Virgin Wines (who seem to be doing quite well right now) and you do get a certain echo of their style on this site. It also refers, interestingly, to this being the Last.fm of wine. Hmmm.

Does anyone else know anything about this project? What do you think?

Oddbins put up the “SOLD” sign yesterday (see here, and here). Really, for those who have been following this (including me), it was not a surprise. What might be a surprise was who bought it. Ex Cellar.

Who?

Well, I can’t claim to be clued up about all the businesses out there, but this one is pretty small, with only 2 outlets BUT … it has a particularly powerful motivator, the kind of thing that might be needed to turn around the performance of a business like Oddbins. The family name.

Ex cellar is run by the son of the founder of Oddbins, Simon Baille.

I come across a phenomenon regularly both in my professional life and my personal experiences. The businesses that impress me most are those where everyone I come into contact with are motivated to make the ‘relationship’ with me (the customer, or supplier) a success because it is good for the business, and for them personally.

I’m sure that seems like common sense, but how many times are you served in a restaurant by someone who obviously is there only for the money and really is only doing the bare minimum? Instead, think how you feel when you walk into a small business and are served by the owner who does everything to please you and make you feel important – because you are.

The best larger businesses manage to engender that feeling even when you are being served by an employee, not the owner, but that employee is fully committed to the business and to the relationship.

Oddbins USED to have this. There was a camaraderie, a pioneering spirit and a sense of fun that was shared amongst all stores. Even though they were not running a small, independent local store, you still felt like it was, but still got the benefit of great buyers sourcing interesting stuff from all around the world.

When it lost that sense of fun, that commitment, it lost its USP and it became just another retailer. Even the mightiest can fall at this hurdle (Starbucks is on the retreat, and McDonalds has been for some years too).

I hope that the new owners can use the family link to recreate that personal commitment from the staff to the business that will make Oddbins a great source of wine again. It is not going to be easy, but all of a sudden, there is at least the potential for this to happen.

If I could make a suggestion though, I would suggest that the developers of the ex cellar website do not get the job of redesigning the Oddbins site! If you need contacts, let me know!

I just have to point you to the kind of post you never expect to see, but exemplifies the future of retailing, one built on relationships and service and not on the “fast-buck” concept.

Price check: 2005 Caronne-Ste-Gemme Haut Medoc

Can you recall seeing anything like this before? I have had such conversations, but only face to face in the old fashioned local stores that know I’ll be back again and again. These are a dying breed in the ‘real’ world.

The difference here is that this post is up for ALL to see, not just for ‘best’ customers. It shows how committed Jill at domaine547 really is to her customers, current and potential.

Thank you Jill, and I hope you get the success you deserve.

Can you point me to anyone else who has done this?

Imagine the scene:

Tesco. Saturday morning. Shopping trolley already half-full. Bored kids. Lots more things to get done today but … you want to get a bottle of wine as a treat for yourself at dinner.

You turn into the wine aisle having resisted the siren call of the latest 2-for-1 deals everywhere else in the store – and all you can see is a wall of 600+ different wines never mind spirits, fortified wines, beers and ciders.

“Hell! OK, 2-for-1 it is. Maybe next time I’ll get something nice.”

Well, at last I have found someone working on a solution! I’ve always thought that something like this ought to have been done before now, but I had not yet found it.

Supermarket Wine is a site dedicated to bringing together EXPERT reviews of wines that can be found in the UK supermarkets so that you can improve your shopping there.

Strangely (for me) this site seems to have been around since 2006, but I must admit I had not heard about it. However, I saw it on a list of must-see wine sites (on a US blog) and thought I’d give it a go.

As I have mentioned before on this site, there are others looking at this area; including Love That Wine and Quaffers Offers (amongst others). The issue was that one had the consumer input, the other the expert view. The ideal, of course, was to combine them. This is what the new site strives to do.

The key has always been finding how to communicate the value of a wine relative to its price. A low priced wine might be great value if the wine is good enough, but how much better is a more expensive bottle? The risk of getting it wrong increases greatly as the cost of the bottle goes up, so consumers are naturally wary.

The solution for supermarketwine.com is to republish the ‘expert’ reviews of the wine columnists of the various British newspapers, already trusted sources of reviews, and link them to the wines with each retailer. Easy!

If you see a review you like, go to this site and link through to any of the retailers who stock it. In addition, once on the site you can read, and contribute, to the ratings from other consumers. You can filter reviews by retailer, price, grape variety, taste characteristic and even reviewer. How many more options would you like?

In practice, the site seems rather short of consumer input (I have yet to find one to be honest) but in true Wine 2.0 fashion the option is there.

Maybe if we give it a go we could build up the kind of traffic that would make this site a worthy reference site for consumers, the developer has certainly put lots of time and effort into building it.

And there is one last thing. I don’t like sites that give me no information on who is behind the business. This site is totally anonymous. No contact details, no name, nothing personal at all. I’m sure the person, or persons, will have the best of reasons for this, but one of the best ways sites can generate customer loyalty is to create a relationship with consumers. Anonymous sites do not do this.

So, Mr/Ms SupermarketWine.com, who are you? Fancy a relationship?

I feel I really ought to clarify the term ‘cool’ used in my previous post in the context of the Wine Conversation.

What I had in mind was the kind of place that a person would not only want to go to, but be seen to go to, and even then talk to others about having been there. In Hugh MacLeod’s terms, a wine retailing Social Marker. By the shared experience of having been to the shop, individuals would be willing and able to start their own wine conversation.

I believe that the retail experience is key because it is common to each wine consumer no matter what they choose to buy. It is also important to keep in mind that this is about the kind of wine consumer who rarely spends over £5 a bottle.

Hugh himself demonstrated the effectiveness of this by engineering the interest in one retailer, Threshers, around Christmas 2006. He used a viral email campaign to get people to talk about that retailer, who then encouraged others to go there to shop and get their discount. It certainly got a lot of people talking and shopping. Where it failed (for Threshers) was that the discussion was not about them at all, but about the discount, and once that was gone, so were the vast majority of the customers.

I’ve been reading a fair bit recently about the change in the fortunes and the reputation of Oddbins. It made me think about where I got started with wine.

An important question came to my mind, which I believe is very important to The Wine Conversation.

“Where is it cool to buy wine?”

Plenty of places will sell you wine, but where do people WANT to go and buy it? Once upon a time, and one of the main reasons the wine culture in the UK became ‘cool’, that place was Oddbins. They may not have been everywhere yet, but anyone interested in wine, particularly if you were younger and wanting to know more about the wine world, would know the name ODDBINS.

It was a place to hang out and find all sorts of weird and wonderful, and just affordable, wine discoveries. Australia. Chile. South Africa. California. Exotic names and brands.

Not only were the wines available, but you could be certain that the person behind the counter, and very often not behind the counter but on the shop floor ready to talk to you, would know a great deal. They would have just tasted some “amazing new listing” that they could recommend.

My wife (girlfriend at the time of course) would know that if I went in “just to browse” I would certainly come out with a bottle of something.

Where are they, and their successors today?

Majestic is certainly one of the most successful. Their ‘by the case’ formula is very good for the bottom line, and profitability and confidence help to keep that success going. But 12 bottles is too much for a student or young person just starting out with wine. I was worried about spending £7, never mind £50.

I believe that when he moved to take charge of wine (amongst other things) at Tesco, Dan Jago said that his aim, and I paraphrase slightly, was to make it the kind of place even those in the wine trade would be happy to buy their wine. He has certainly overseen an interesting expansion of their range, I can’t fault that. Unfortunately, I personally can’t see Tesco or any supermarket being a ‘cool’ place to buy your wine, however good the range (he may well disagree).

Independent Merchants, small shops run by enthusiastic individuals, are certainly out there, but the market is very fragmented and their power to reach out to new consumers is limited. Many also find them quite daunting – an unknown quantity where one’s own lack of knowledge might be sneered at.

Can anyone step in? Threshers seem more intent on becoming convenience stores. Nicolas’ exclusive focus on French wines is insanity in the current climate.

One final alternative are the mail order and internet merchants – and here I’m mainly thinking of Direct Wines / Sunday Times Wine Club / Laithwaites / Virgin. This is a growing area for selling wine, but no-one has yet become THE place to go and buy wine. However, this is something to explore further. Many are vying to be the Amazon of wine retailing.

Maybe Oddbins will finally turn it around, who knows, but it will take a great effort, but who else is there?

So, where do you buy your wine?

I have been visiting Nova Scotia in Canada for a number of years (it is absolutely beautiful by the way) and usually I am critical of the concept of the Canadian state (well, the Provincial governments) having a monopoly on the sale of alcohol. You can check out the range here.

For those of us living in the UK or most of Europe, the idea that the state should control what wines or spirits should be available, where, and for how much is extraordinary (if you live or visit Sweden this is probably not such a shock for you).

[Some might argue of course that this is exactly where we are heading in the UK because of the retail strength of the supermarkets like Tesco - but even here we at least have a number of alternative ranges to choose from]

My reaction is usually – “How could one organisation tell us what wines we can drink?”, especially when the result, at least in Canada, is a pretty limited range of branded wines?

The reason for this structure is most likely still a hang-over (!) from Prohibition (yes, they had it here too), and there is a sort of puritanical streak to the management of this ‘vice’ which I personally disagree with. It also means that there is a form of “lowest common denominator” effect at work which determines that all wine have to be available in minimum quantities to supply all stores, have to be consistent and also be able to comply with the kinds of red-tape only government departments are able to create. This often results in a pretty bland range.

However, there is one small silver lining to this was pointed out to me which I had not considered. In the UK we have such a high density of population that we can pretty well guarantee access to supermarkets or shops wherever we are, with a few exceptions of course. This means that the market can operate quite freely and there will be someone who can sell you what you are looking for within a reasonable distance.

When you take a country like Canada, this is definitely not the case outside of most large cities. So much of the infrastructure here depends on government support to reach tiny communities in distant areas, that if the government did not step in, certain items (especially luxury items such as wine) would either be impossible to get, or prohibitively expensive.

OK, so wine is probably not the main justification for this type of system, and I’m sure they make a pretty penny or two in tax from selling and taxing all that alcohol, but at least they can get it. Hopefully in time, and with a little popular pressure, the range will improve further.

I’m sure the local “liquor commission” would tell you that a monopoly also means that there are clear & limited channels for reaching consumers, giving the opportunity for ‘managing’ consumer alcohol consumption. I still think that in the longer term education works better than restricting access. However, thinking positively, it does mean there are obvious places to start reaching consumers with information on wine to educate and inform them and improve their experience.

Still, I’ll take Tesco’s range over the NSLC one any day!