Posts Tagged ‘retail’

Virgin to tempt US consumers?

Friday, June 25th, 2010
Virgin Wines
Image via Wikipedia

It’s a bit if speculation, but I’m guessing that Virgin Wines is about to start targeting US consumers having been built up in the UK.

Since they started they’ve always been at www.virginwines.com which, when they started (as one if the longest lasting players in this space), was sensible as country specific domains such as .co.uk were still misunderstood and mistrusted.

It seems that they are transferring their existing site to the www.virginwines.co.uk URL and asking bloggers who had included links to their old site to change all their links (a PITA for no specific reward other than doing a favour for our readers and their Google visibility).

Why would they do that? Presumably because they have separate plans for the .com URL

I have not seen any announcement about a US consumer launch, but it makes sense to expect one. It will be interesting to see how the model works in the complex US market, and what that means, also, for the UK business.

If they have a much bigger market they could end up simply sourcing more volume lines, or they could increase their buying power for more, small parcels of greater interest, we shall see.

Anyone know any more about this? Presumably someone at Virgin Wines is watching ;)

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Find Wine with Style

Thursday, December 3rd, 2009

findwineAt 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)

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The value of a tasting note

Friday, November 20th, 2009
Copyright symbol
Image via Wikipedia

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 – friend or foe?

Tuesday, August 4th, 2009
The Wine Gang

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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Would you give your details to a “Naked” stranger?

Tuesday, November 25th, 2008

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?

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