Tag Archives: Millennial Math

The Sleeping Giant of Italian Wine

Amber LeBeau in Food Pairing, Millennials, Shopping for Wine, Wine grapes, Wine Knowledge

Published on June 2, 2019

A couple of days ago, Harper’s UK posted an article about the dominance of Old World wine in the Chinese on-trade sector (restaurants, bars, etc.). While New World regions like Australia are making an active play, France still rules the roost with a 36.7% market share.

Mauro Sebaste Roero Arneis

But the French have been focusing on China for a few decades now–starting not long after France and China formally established diplomatic relations in 1974. Interest was strongly led by Bordeaux estates, which still make up a sizable chunk of the French-Chinese market today.

However, the most eye-raising stat from Harper’s report was the very solid share of Italian wines at 17.9%. Though, as the article noted, Italian wines still only account for 6.3% of total Chinese imports–which includes grocery and retail sales.

But considering that you don’t hear much about marketing Italian wines in China, there is plenty of room for optimism if I’m an Italian wine producer.

And it’s not just China that is seeing growth in Italian wine sales.

Italian wine sales in the US have been steadily growing as well–and, no, it’s not your grandma’s straw basket Chianti or cheap Pinot grigio that’s fueling that growth.

Luigi Pira’s Dolcetto d’Alba is a screaming good deal in the $12-16 range retail and is rarely seen above $35-40 at restaurants.

Instead, backed by a huge marketing push, Americans are discovering the vast diversity of Italian wines. With its bounty of unique and exciting grape varieties, as well as thousands of small producers, Italian wines are particularly enticing to Millennials who desperately seek something different from the same ole, same ole.

Even better, because Italian wines are still lingering in the straw basket shadow of fiascos past, many of these wines are crazily underpriced. Especially in the $10-20 range, you can often find bottles that way overdeliver on the price. Simply put, Italian wines are nailing the Millennial Math.

In the race to capture the hearts of the elusive Millennial market, Italian wine producers have a great head start. Wineries across the globe are well advised to pay attention to a sleeping giant that is poised to take more of their market share.

But you don’t have to take my word for it. Go check out your local wine shop and meander over to the Italian section. Look for examples of these grapes below and see for yourself what the hype is all about.

Seven exciting Italian wine grapes to try.

Below are varieties that most good wine shops should carry at least one, if not multiple, examples of. All of the pictured and referenced wines are ones that I’ve personally found in the United States, though a few of them I did first try on producer visits to Italy. But, while they were all excellent, you don’t need to look for these particular producers. It’s more about just trying the grape.

BTW, if you want to geek out more about Italian grapes, I very highly recommend getting Ian d’Agata’s Native Wine Grapes of Italy as well as Joseph Bastianich and David Lynch’s Vino Italiano: The Regional Wines of Italy. That last recommendation currently has many used paperback options available on Amazon for less than $10 bucks. Great buy for wine students.

Aleatico

This Aleatico with dark chocolate covered raspberries was a heavenly pairing.

One of the oldest grapes in Italy, Aleatico can be found as far north as Elba and Tuscany and as far south as Sicily and Puglia. DNA evidence has shown that it has some parent-offspring relationship with Moscato bianco, but it is not yet known which grape is the parent and which is the child. Still, a good comparison of Aleatico is to think of a black Muscat with more racy acidity and spicy aromas of cinnamon.

Made in the passito style (with dried grape), this Fattoria di Fubbiano Aleatico reminded me of a richer and spicer ruby port. This wine was beautifully balanced with sweetness and deep dark fruit but still lively and fresh tasting. For around $25-30 for a 500ml bottle, it’s an excellent choice for that bedeviling pairing of red wine and chocolate.

A great choice for: Wine drinkers who want balance and complexity in their sweet dessert wines.

One of the biggest things that separate wine geeks from wine snobs is that geeks can appreciate good sweet wines. After dinner, many sweet wines are perfect as dessert themselves or as pairing partners. If you have a snob friend who always turns their nose up at sweet wine or who thinks Port is too alcoholic, challenge them with a great bottle of Aleatico.

Arneis

The same fog conditions that are so valuable for maintaining freshness in Nebbiolo can help Arneis retain its acidity in the right locations.

In the 1980s, Arneis was one of Italy’s most popular white wines, but this Piemontese grape eventually took a back seat to the global thirst for Italian Pinot grigio (and later Moscato). Still, quality minded producers like Mauro Sebaste never lost faith in this fresh and aromatically floral grape.

In the Piemontese dialect, the name “Arneis” is derived from the word for “rascally individuals,” and the grape can be a bit of a rascal in the vineyard. Producers have to pay attention to the vine throughout the growing season and make sure that it is planted in the right locations to thrive. The sandy, chalky soils of the Roero on the left bank of the Tanaro has shown itself to be particularly well-suited for Arneis.

Before DOC/G laws were tightened, the low acid Arneis was often blended into the higher acid Barbera and even Nebbiolo of Barolo to help soften those wines and add aromatic lift. It was a practice not that dissimilar to the co-fermenting of Viognier with Syrah in Cote Rotie. The best examples of varietal Arneis attest to the wisdom of that old practice with gorgeous white floral notes, subtle herbalness and creamy mouthfeel.

A great choice for: Fans of white Rhones like Viognier, Roussanne and Marsanne.

But also red Rhone drinkers for that matter too. The combination of lovely floral notes with a mouth-filling body makes this another great white wine option for red wine drinkers.

Barbera

Pro tip: Producers who make really good Barolo and Barbaresco (like Mauro Veglio) will usually make a very kickass Barbera.
If you’re at a restaurant and don’t want to pay a fortune, compare the Barbera and Barolo/Barbaresco sections for producers.
I can guarantee that the Barbera will be a great buy.

One of the biggest surprises for me in visiting Piedmont was how much Barbera dominates the wine lists of local Piemontese restaurants. While Barolo and Barbaresco are the region’s pride and joy, Barbera is what they drink most regularly. And it makes sense because the grape produces immensely delicious wines that are very approachable young.

It’s also no shocker that Barbera is one of top 5 most planted grapes in Italy. What is a little more surprising is that it is one of the 15 most widely planted red grapes in the world.

Unoaked examples are going to show lively acidity and be redolent of red fruits. Meanwhile, some oak will introduce more vibrant chocolate notes. In general, the wines from Barbara d’Alba tend to be more full-bodied with more prominent tannins. While I find those from Barbara d’Asti to be more floral and velvety.

A great choice for: Folks getting knee deep and geeky into the Cru Beaujolais trend.

There are rocking bottles coming out of Beaujolais, but people are catching on and the prices are starting to rise. I actually find Barbera to be a little more consistent than Gamay. Plus, with it still being under the radar, amazing bottles can be easily found for less than $20.

Dolcetto

The “red stemmed” version of the Dolcetto has even made its way to the US. This cluster pic was taken at a vineyard in the Puget Sound AVA of Washington in mid-October just before harvest.

The “little sweet one” that is never sweet and rarely a little, light bodied wine. The name likely came from Dolcetto’s favoring as a table grape. I haven’t had the privilege of trying Dolcetto grapes off the vine. But I’ve heard from producers that they are quite a treat. Apparently, you can taste the bright red berry and plum flavors of Dolcetto as well as a subtle saline note that the best Piemontese examples exhibit.

While we don’t talk about clones as much for Dolcetto as we do for Sangiovese or Pinot noir, Dolcetto has quite a bit of clonal variation. In the vineyard, these can be readily apparent by looking at the cluster stalk. Most have a greenish stem, but one particular clone (or biotype as Ian d’Agata prefers) known as Dolcetto dal Peduncolo Rosso has a fiery red colored stem. It is a specialty of the Tassarolo area near Alessandria. However, it can be found in many vineyards in the Dolcetto d’Alba zone as well.

The Dolcetto d’Alba area tends to produce the biggest, most full-bodied Dolcettos with a mix of red and dark fruit. While not as tannic as the Nebbiolo of great Barolo and Barbaresco, these wines will have some heft. In the Dolcetto di Dogliani area, the wines tend to exhibit more floral notes. This is also the area where I pick up that saline minerality the most.

A great choice for: Wine drinkers wanting something between a Pinot noir and a Merlot.

While, undoubtedly, more tannic and bigger bodied, I get a lot of Pinot quality in some Dolcetto. Particularly with the floral and minerally nature of Dolcetto di Dogliani. However, those from the Dolcetto d’Alba area can have more opulent dark fruit. With oak influence, even some chocolate notes can come out. You wouldn’t ever confuse a Dolcetto for a plush, hedonistic Napa Merlot. However, the lively acidity and freshness can hit a lot of pleasure spots for Washington Merlot fans.

Falanghina

A great white wine option in the $14-16 range for pairing with medium to heavy body food dishes.

This is another ancient Italian wine grape with likely Roman origins. However, the association of Falanghina with the famous Roman wine Falernian is probably misplaced.

Part of this is because there are so many different types of Falanghinas out there. Ampelographers are not yet sure how many are different clones/biotypes or if they’re distinct grape varieties. For the most part, what you’ll see in the US is Falanghina from the Benevento IGP in Campania.

In the rich clay and volcanic tufa soils of Campania, Falanghina produces heady, full-bodied wines with tree fruits and floral notes. Some examples can also have a subtle leafy greenness. It’s not quite New Zealand Sauvignon blanc green but more reminiscent of an excellent white Bordeaux.

A great choice for: White Bordeaux fans!

But as with the Arneis above, I can also see Falanghina capturing the attention of white Rhone drinkers as well. It definitely has the body and structure to appeal to many wine lovers. Likewise, drinkers of unoaked or lightly oaked (but not buttery) Chards can find this wine to be a charming change of pace as well. It will pair with many of the same food dishes.

Friulano

I had to hunt for online retailers that offered this Schioppettino Friulano but, even paying a premium, this was still an absolute steal of a wine for under $25.

When I had my big cellar-clean out parties before moving to France, this Schioppettino Friulano rocked my world. I was pretty much dragging this bottle to everyone at the tasting and telling them that they had to try this wine. If you ever wanted a textbook example of minerality, this was it.

Formerly known as Tocai Friulano, legend has it that Italians shared this grapevine with the 13th century Hungarian King Bela IV where it was once used for that country’s famous Tokay wines. Ampelographers and wine historians now believe that there is little truth to those tales. But the racy acidity, green apples, nutty almonds notes and flinty minerality of Friulano is not that far off from a dry Hungarian Furmint.

A great choice for: Fans of exciting, minerally whites.

Dry Riesling, Chablis, Sancerre. You’re probably not going to confuse Friulano with any of those. However, there is a kinship in the electric way that all these wines dance on your tongue. There’s a nerviness about them that is just absolutely intoxicating once you find a great example.

Another tell-tale distinction between wine geeks and wine snobs is the cyclic journey that geeks take in appreciation of great whites. Both snobs and geeks often start out drinking white wines. Maybe sweet Rieslings before moving on to the Chardonnay, Sauvignon blanc and Pinot grigios of the world. Then comes the dabbling in red wines. Here most snobs get stuck with the occasional allowance for the “appetizer” white wines of Great Burgundies and what not. All before you get down to the seriousness of red wines, of course.

But wine geeks eventually circle back to the wonderful world of whites. They can appreciate the seriousness and winemaking skill that making great white wines entails. Without a doubt, Friulano is a wine geek’s wine.

Dry Lambrusco

While it’s great with my wife’s homemade Margherita pizza, dry Lambrusco would elevate even Totino’s Party Pizza.

Yes, dry Lambrusco. We’re not talking about the Riunite or Cella Lambruscos that your Aunt has hidden under the cupboard. If you want the surest sign that you’re shopping in a good wine shop, it will most definitely be the presence of dry or Secco Lambrusco. Often with a slight effervescence, this is one of the most perfect pizza wines that you can find.

June’s #ItalianFWT Twitter chat–which I recently profiled– focused on Lambrusco with a lot of great write-ups and reviews of different wines (almost all of which can be found in the US). I highly recommend checking out the #ItalianFWT hashtag which featured links to many great blog posts. A few of my favs were:

The Wine Predator’s Bugno Martino’s Organic Lambrusco Defy Expectations.

The Asian Test Kitchen’s TOP 5 FAST FOODS PAIRINGS WITH LAMBRUSCO.

Linda Whipple’s SIPPING LAMBRUSCO IN STRAWBERRY SEASON

A great choice for: Pizza lovers.

While the blogs listed above gave other great pairing ideas, my heart still goes to pairing dry Lambrusco with pizza. The tang and sweetness of the tomato sauce pairs gorgeously with the bite and rambunctious berry fruitiness of Lambrusco. Plus the saltiness of the cheese and toppings is the perfect foil for the tannins and subtle earthiness.

This really is one of those magical pairings that everyone should try. You can see how vividly the wine and food change when you have them separate compared to having them together.

Want more? Check out these 60 Second Reviews of a few more Italian wine favorites

60 Second Wine Review — Lanzavecchia Essentia . A crazy delicious Nebbiolo, Barbera and Merlot blend that I’m still smarting over not buying more bottles of.

60 Second Wine Review — 2008 Ferrari Perlé. A $30-35 traditional method sparkler that blows most mass-produced negociant Champagnes in the $40-50 range out of the water.

60 Second Wine Review — Armani Colle Ara Pinot Grigio. Think all Italian Pinot grigios are cheap and watery? Think again.

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The Wine Industry’s Millennial Strawman

Amber LeBeau in Millennials, Napa Valley, Shopping for Wine, Wine marketing

Published on April 22, 2019

I have some bad news for wine industry folks like Bob Torkelson, president and CEO of Trinchero Family Estates. You guys are chasing a strawman trying to solve your “Millennial Problem.”

At a recent wine industry conference at Sonoma State University, Torkelson and other industry executives shared their thoughts on why Millennials weren’t buying premium wine at the rate of previous generations.

Of course, the substantial college debt and poor job prospects of Millennials made its appearance as the scapegoat du jour with Bill Swindell of The Press Democrat quoting Torkelson:

Maybe they don’t have any money. The prospect of them getting a better job is going to be difficult for a while. We face a lot of obstacles in this area. It will be interesting to see how we approach it. — Bob Torkelson, “Wine executives debate the promise and peril of millennial wine consumers” 04/18/2019

The idea of college debt keeping Millennials from embracing wine is an oft-told narrative. After the Silicon Valley Bank report came out in January, sounding the warning call about waning Millennial interest in wine, many stories ran with the idea that the more than a trillion dollars of Millennial student debt was the culprit.

College debt and poor job prospects are serious issues but let me splash some cold truth on this burning strawman.

Even if you forgave all our college debts tomorrow, Millennials are not going to be running towards wine.

Photo By Sideways11 - Own work, Public Domain,

Seriously, it’s not Rex Pickett’s fault that no one is buying Merlot. It’s because the wines usually make us want to fall asleep.

Millennials are already spending money. That’s not the issue. The issue is that most of us are not spending money on wine.

Instead, we’re spending it on things that we want to spend it on–even if they may seem frivolous to other generations. We have no problem spending around $1200 a year (£904.20) socializing with friends or almost $600 (£441) on a daily treat of coffee.

For around $1800 a year, we could buy more than a case of the 2014 Duckhorn Three Palms Merlot that was Wine Spectator’s #1 Wine of the Year back in 2017. Or more than 7 cases of Duckhorn’s Decoy Merlot at around $20 a pop.

But why would we?

I’m in the minority as a Millennial who does spend money on wine but even I wouldn’t bother with chasing the Duckhorn Three Palms Merlot. No Millennial seriously cares about Wine Spectator’s Top Wine of the Year and while the Decoy Merlot is solid at $20, I could only enjoy one bottle before becoming dreadfully bored.

Millennial Math in action. While the #1 wine of the year is usually $100+, you can buy the #1 whiskey in the world for around $30. And you don’t have to finish the bottle in one night.

Even if we had the money, even if you gave us the money (via debt forgiveness), the industry is still not bothering to answer the fundamental question of why Millennials should care about what they’re offering.

The wine industry just assumes that as soon as Millennials somehow get more money in our pockets that we’re going to eagerly start buying whatever it is they’re peddling.

I’m sorry guys, but that’s a pipe dream.

What the industry needs to realize is that for Millennials, it’s not about the money. It’s about the value (i.e. Millennial Math) and whether or not your product is actually interesting to us.

That’s true whether your wine is $10 or a $100+. It has to deliver on intrigue and value.

A bottle of Ménage à Trois or covering the $7.99 Uber Eats fee?

What I found most laughable about Torkelson’s worry about college debt impacting wine sales is that Trinchero’s most well-known brands are Sutter Home and Ménage à Trois. You don’t need to take out a payday loan or put off buying a house to drink these wines.

All you need is the money you spend on delivery fees. Yet, even with all our debts, Millennials have been enthusiastic consumers of services like Uber Eats, Deliveroo, GrubHub and the like.

Why? Because having someone bring us new and exciting food dishes from a variety of restaurants offers us far more value for an extra $8 bucks than a bottle of Ménage à Trois ever could.

Plus, we can always get an interesting craft beer, cider or even hard seltzer water to drink with our takeout that is certainly less boring than another same ole Cab, Chard or Red Blend.

The Avocado Toast Test

Millennials really don’t eat avocado toast all the time. It’s more of a meme than anything. But still, as an occasional treat, spending around $10-20 for some avocado toast is well-established as not being a big deal for us.

That $10-20 range is a sweet spot for a lot of wineries targetting Millennials. So that leads to an essential question that every winery should ask themselves.

Is my wine more interesting than avocado toast?

Does a bottle porn pic on Instagram make me want to drink your wine more than this picture makes me want to eat this dish? Probably not.

Why do people like avocado toast?

It’s different and definitely not something that our parents ate.

We can customize it and have it in a variety of ways (sliced, smashed, brioche, bagels, flatbread, baguette, tortillas) and with numerous toppings (bacon, cherry tomatoes, sesame seeds, balsamic, fried egg, grilled shrimp, toasted almonds, pomegranate, etc). Even loaded with all those goodies it still feels relatively healthy and a treat.

Does your wine offer any of that?

Does it offer us something interesting or unique? Or is it just the same old boring stuff that our parents drank?

Does it seem relatively healthy? Or is it sourced from conventionally farmed vineyards and highly manipulated in the winery with oak chips, mega-purple additives, and residual sugars?

Hey, look! Another sub-$20 oaky, buttery Chardonnay. Lovely…..

Regardless of the price, does drinking your wine actually feel like a treat? Does buying your wine feel like a good value worth spending money on?

Yeah, Millennials do have a lot of college debt and shitty job prospects.

But wineries that are using this as a scapegoat to explain why we’re not buying their wines are fools.

Millennials do spend money on things beyond the bare essentials of food & rent. Like every generation that has come before us, we want to live and enjoy life even when so much around us royally sucks.

If your wine offers us that little bit of joy that our daily latte, going out with friends, a new outfit, getting take-out from a favorite restaurant or avocado toast does–then we’re going to buy it.

But if you’re peddling the same ole wines that we see everywhere, then no, you’ve lost us.

You could snap your fingers like Thanos and make all our college debt disappear, but that’s not going to change the fact that your wine is more boring than avocado toast.

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Box Wine Envy

Amber LeBeau in Millennials, Wine marketing

Published on April 2, 2019

Right now, I am sipping on a glass of French Muscadet that I paid the equivalent of $3.86 a bottle for. With its medium intensity nose of citrus and green apple, crisp acidity and moderate finish, I would peg this wine in a blind tasting as something in the $8-10 range.

Muscadet box wine

It’s simple, refreshing and eminently drinkable. But instead of paying $8-10 for a bottle that I won’t finish by myself, I’m savoring this glass over lunch with many more opportunities over the next 3-5 weeks to repeat the experience. All for a grand total of 13.79 euros ($15.44 USD).

Such is the beauty and potential of boxed wines.

Unfortunately, this is an experience that is difficult to repeat in the US. Back home, while the selection is improving, the usual options for many wine drinkers are the mass-produced (and often highly manipulated) supermarket brands of Black Box, Bota Box, House Wine, Bandit or (shudder) Peter Vella, Almaden, Carlo Rossi and Franzia.

While Australia and parts of Europe have enthusiastically embraced the benefits of box wines, there is a chicken and egg conundrum in the US about them. Box wines have a poor reputation among US consumers. Therefore, quality minded producers don’t want to bother with them.

But why do US consumers associate box wines with poor quality?

Perhaps, because the quality of box wines that we’ve been exposed to has been shit?

The French Paradox

Admittedly, not all of them are winners.
I’m sure 6 to 8 months ago this Corsican rosé was lovely. But now it is definitely on its wane and is just ho-hum.

How can a country with a reputation for snobbery be so ahead of the US in embracing box wines?

They’re everywhere and account for more than a third of retail wine sales in France. At the cafés, American tourists pair their Parisian memories with glasses of vin rouge and vin blanc. Many go home none the wiser that their 25 and 50 cl carafes were filled via a plastic spigot.

Walk into a French grocer and at least half an aisle is dedicated not to the Franzia and Black Boxes of the world, but rather to things like Macon-Village, Beaujolais, Cotes du Rhone, Provençal rosé, Anjou blanc and Côtes de Bordeaux–in the box! Ranging in price from 12 to 20 euros ($13 to $22), these aren’t Franzia-level cheap but on-par with the pricing of “premium” Black and Bota Box offerings.

I have yet to visit a BiBoViNo, a French wine bar that specializes in box wines, but there I will have the option of trying old vine Cinsault, Cru Beaujolais and even Condrieu (!) sold by the box.

That would be akin to having an old vine Dry Creek Zinfandel, a Dundee Hills Pinot noir or a high-end Walla Walla White Rhone available to consumers in a box.

Can you imagine how wonderful that would be?

Why US Producers Should Give Box Wines Another Look

No one is arguing that we need to completely disregard bottles. Nor do we need to turn everything into bag-in-box. There is always going to be a place for fine wine and cellar-worthy treasures.

But the vast, vast majority of wine consumed is not cellar-worthy wine. Most wines that are consumed at lunch, dinner or relaxing on the couch with a book are young wines that do not benefit from the gradual aging of cork in a bottle.

Why have so many other parts of the world caught on to this before the US?

Box and 1.5L bags are excellent for cooking–such as when you need just a splash to deglaze a pan or add flavor to steamed veggies.
However, you never want to cook with something you wouldn’t drink. Hence, the importance of needing a good quality box options.

With the changing market dynamics of Millennials and the upcoming Generation Z, the last thing that US producers want to do is rest on their laurels. What worked for selling wine to the Baby Boomers and Generation X is not guaranteed to work on these consumers.

Just as the wine industry has done for millennia, US producers are going to need to adapt or perish.

Not every solution is right for every producer, but it’s always wise for a winery to look at how their current production is fulfilling consumers’ needs.

1.) Moderation

While I’m skeptical of the scare-mongering reports that Gen Z is going to be the abstinence or teetotaling generation, I do think that moderation is firmly en vogue. Anyone that plans on selling wine over the next 40 years should probably take note.

Millennials and Gen Zers have seen too many of their peers lose jobs and college prospects over unflattering photos, tweets and videos that stem from over-indulgence. While Boomers and Gen Xers had the privilege of their college keggers and booze cruises going undocumented, we now live in an era of social shaming. Undoubtedly, that kind of negative reinforcement is going to influence behaviors.

But instead of the wine industry throwing this consumer base into the arms of “mocktails” and alcohol-removed Franken wines, they should be trumpeting the same mantra that has been preached since the days of the ancient Greeks–moderation.

It is best to rise from life as from a banquet, neither thirsty nor drunken. — Aristotle

Throw moderation to the winds, and the greatest pleasures bring the greatest pains. — Democritus

Think Outside the (750ml) Bottle.

The lunchtime quandary — get snockered on a bottle of wine in one sitting or try to save it to finish at dinner (assuming you even want to drink the same thing).
Or…..you can have a beer.

What’s one big advantage that beer, cider and hard seltzers have over wine right now? Their go-to packaging is usually single-served options like 12 to 16 oz cans and bottles.

With spirits, they have the benefit of longevity after opening which still allows convenient single-served shots or cocktails without excess waste.

Now, yes, the wine world is playing catch-up with single-serving cans and tetra paks. Also, thankfully, more producers are giving half-bottle (375ml) another go.

But, usually, when you bring up the problem of opening up a full bottle for just a glass or two, you’re met with either condescending mocking of “Leftover wine? What’s that?” or calls to shell out $200+ for an expensive Coravin preservation system.

Of course, someone may suggest coughing up $10 for a vacuum pump system but, seriously, don’t waste your money.

For the $30+ wine, the Coravin is probably the best advice. But the vast majority of wine drinkers aren’t regularly consuming $30+ wine. For these consumers, who just want a nice glass after work or something to have with dinner, one of the best solutions for moderation without waste is a 1.5 or 3-liter box wine that can last 3 to 5 weeks.

But the quality (and value) has to be there.

2.) Value

As I’ve touted many times before, the wine industry can not let the Millennial Math get away from them. The industry has to deal with the lethargy of value options they’re peddling because other categories are far out-performing them.

However, box wines can be a great equalizer here.

The “filling” of bag-in-box packaging does require changes from the traditional bottling line. But there can be substantial savings in production costs. This is especially true when you consider freight and shipping costs of glass bottles. The typical 3 L box uses 91% less packaging material than the equivalent four (750ml) bottles of wine and weighs 41% less.

Those savings add up. Hopefully, they’re passed on to the consumer.

The Guardian Newsprint Red Blend is a tasty bottle for $18.
But it would be insanely good as a $40 three liter box wine.

It would be a Millennial Math game-changer if instead of being relegated to the Barefoots, Yellow Tails, Apothics and Clos du Bois’ of the sub $10 world, a consumer could get a Washington red blend in a $40 three-liter box. Or Paso Robles rosé in a 1.5L bag for $20.

Even better, take a page out of the French playbook and give American consumers the chance to enjoy a 6 oz glass of Muscadet for the equivalent of 97 cents a glass. That’s cheaper than soda at McDonald’s.

That’s how you start winning the Millennial Math.

3.) Sustainability

There is no doubt that the upcoming generations of wine consumers has the environment on their minds. Many wineries are responding by becoming more “green friendly” with better farming practices in the vineyard, controlling water waste and building LEED Platinum certified wineries.

Plus, there is only so much that a poor recycling bin can take.

All of those are successes that should be touted and emulated. But none of those things are physical, tangible items that a consumer can hold in their hands and feel good about putting in their cart.

It’s hard to get much feel-good mojo picking up a weighty glass bottle of wine that has the same carbon footprint as driving 3 miles in a gas-powered car–regardless of how many “green friendly” achievements are touted on the back label.

In contrast, a 3L box wine drastically cuts that footprint. In a New York Times opinion piece, Tyler Coleman (Dr. Vino) notes that “switching to wine in a box for the 97 percent of wines that are made to be consumed within a year would reduce greenhouse gas emissions by about two million tons, or the equivalent of retiring 400,000 cars.”

That’s a lot of feel-good mojo.

The Chicken Needs to Act

Back to our chicken and egg scenario.

Quality-minded wineries are hesitant to invest in producing good quality box wines because of the lowly reputation they have among consumers. Consumers are reluctant to try box wines because of their lowly status and bad past experiences.

Psst….hey you. You wanna try some kombucha?

Something’s got to give. That something is US wineries taking the lead by putting better quality box wines out on the market. Leading instead of reacting.

The wine industry doesn’t have the luxury of sitting around waiting for consumers to “demand” better box wines. Other chickens are already busy courting them.

If wineries aren’t going to give consumers the eggs they want to make better omelets (moderation, value, sustainability), then craft beer, cannabis, cider, hard seltzers and spirit producers will be all too willing to step into that void.

So it’s time for the wine industry to stop running scared and embrace the box.

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Wine Above Replacement (WAR) — Hard Seltzer

Amber LeBeau in Millennials, Wine marketing

Published on March 28, 2019

It’s Opening Day for Major League Baseball. Unfortunately, I had to deal with my St. Louis Cardinals sleepwalking through their opener with the Milwaukee Brewers, so I’m looking for a good distraction. Thankfully, that mental break came from revisiting a Facebook thread about my Winery Moneyball article.

Spiked Seltzer

In a tongue-in-cheek comment, the Sierra Wine Guy wondered When will wineries start using WAR [Wins Above Replacement]?

That got me thinking, what would be a good wine industry equivalent to WAR?

What is WAR?

I’m not going to get into the nitty-gritty sabermetrics here. But WAR is essentially the calculation of a player’s value to the team above that of the typical bench player or minor-leaguer. Instead of focusing on just one aspect of a player’s game (like offensive stats), WAR aims to calculate their total value including defensive runs saved, baserunning and pitching.

Taking all these metrics together, WAR presumes that having a player like Mookie Betts on your team (10.9 WAR in 2018) is worth almost 11 more wins than signing Joe Schmoe off the waiver wire. In contrast, it may have been better for the Orioles in 2018 to sit Chris Davis and eat his $161 million contract instead of trotting him out on the field to deliver a -3.1 WAR. Ouch!

Though far from perfect, WAR stats have dramatically changed the evaluation of players in baseball (for better or worse). The reason is that, at its core, WAR doesn’t look at each player as a monolith. It tries to look at the bigger picture by recognizing that the needs of baseball teams are multi-faceted (hitting, pitching, base running, defense). It then tries to see how well each player fits into that jigsaw puzzle.

How does this apply to wine?

And the under $9 category is starting to look really Chris Davis-y.

Like a baseball team, wine consumers are multi-faceted. They have a multitude of needs beyond just being thirsty that wine aims to fill. But wine is also similar to a ballplayer in that it’s not monolithic either. It is more than just a mixture of alcohol and water.

Which makes it kind of ironic that wine is losing “throat share” (particularly with Millennials) to things like hard (spiked) seltzer–which is literally just alcohol and water.

While wine sales in the US are expecting to level out, or even decline, in 2019, producers of hard seltzer like White Claw and Truly are looking forward to a gangbuster year. And why shouldn’t they? They had already seen growth from $85 million in sales between 2016-2017 to more than $250 million in 2018.

In the metric of Wine Above Replacement, the WAR of hard seltzer is rising while that of wine is most definitely falling.

Why?

Photo By Mwinog2777 - Own work, Uploaded to Wikimedia Commons under CC BY-SA 3.0,

Maybe I would have enough to buy a new Goldschmidt Cardinals jersey.

It all goes back to consumer needs and if they’re being met. Admittedly, dissecting the needs of the typical wine consumer is not cut and dry.

It’s certainly not as easy as looking at the St. Louis Cardinals leading the league in errors last year (133), and thinking that maybe they need some defensive help–like, perhaps, a Gold Glover at first base?

Decades of marketing ink has been spilled studying wine consumers and breaking them down into various segmentations based on needs. If I had all the answers, I’d be a wealthy woman. Well, actually no, I wouldn’t be wealthy because no one really pays for wine content anymore.

But, as W. Blake Gray has noted, Millennials are talking about what they want. Maybe the hard seltzer industry is simply doing a better job of listening?

A few of the things that Gray highlights in his piece are Millennials’ interest in healthier products, transparency, our aversion to boredom as well as our cravings for personal experiences. One other item that I would add is the sense of value and getting a good bang for the buck that is important to many Millennials.

Let’s see how hard seltzer is tackling these needs.

1.) Healthy

Believe it or not, a fair amount of consumers actually believe that hard seltzer is healthier than wine. Part of this is slick marketing from the big players in the seltzer industry (including the non-alcoholic leader La Croix). But this is also a failing of the wine industry in not counter punching the recent spate of negative press about wine and health issues.

Rob McMillan makes this latter point extremely well in a recent blog post.

We as an industry have lost our way in our daily quest to sell our production. We stopped talking to the consumer and stopped defending [against] the junk science out there. We stopped supporting the decades of science that proves there are health benefits of consuming wine. Our consumer is reading the press and without a rebuttal, they no longer believe moderate consumption [is] part of a healthy diet. — Rob McMillan, I Can’t Take the Lunacy!, 3/28/2019

Meanwhile, Truly and White Claw are peddling the “Vodka Paradox” that just because something is clear and low in calories, then it must be good for you.

2.) Transparency

Though if more wineries adopted Ridge’s approach to transparency and labeling, that would be a positive step.

Gray does an excellent job of illustrating the dichotomy of back labels between hard seltzer packaging and most wine bottles.

I’m not entirely sold on the idea of extensive ingredient lists and nutritional labeling on wine. Ultimately, I think it will bury small family wineries in bureaucracy more than it will expose mass-produced and additive laden commodity wines. But, I will concede that the labeling (or lack thereof) does provide a stark contrast.

However, the perception of the wine industry as opaque and obtuse is also not helped by our myriad of grape varieties, wine regions and laws that require an insider’s knowledge to untangle. This is another stark contrast with hard seltzer.

Even with the sleight of hand “healthy” marketing, any consumer buying hard seltzer knows what they are getting. Water and alcohol. They don’t need to attend classes, buy books, read blogs, subscribe to magazines or attend special tastings to understand what they’re drinking. That transparency of “getting it” is something that wine is never going to match.

But this doesn’t have to be negative. Keep reading.

3.) Interesting

As soon as hard bacon seltzer hits the market, the shark-jumping will commence.

Right now, hard seltzer has the “cool factor.” It’s not boring and it is certainly not what your parents are drinking. It’s the Instagram to wine’s Facebook.

But that shine will eventually wear off, leaving exposed how transparently simple hard seltzer really is. Yeah, it’s water and alcohol with some flavoring added. It’s flavored vodka for newbies. Been there. Done that.

Eventually, Millennials are going to get bored as there are only so many flavors and fancy packaging that the industry can come up with to keep entertaining them. When the market moves on to find something new, wine’s “weakness” of its complexity and diversity can be a strength.

That’s when the wine industry needs to be the heavily tattooed guy streaking on the field in the middle of the game. Folks might not know what the heck is going on, but they know that something is going on. And no one is taking their eyes away until the naked dude gets tackled.

4.) Personal Experience (relatability)

But what do we do when the Millennials’ eyes are finally upon us? How do we bump up our WAR to make wine more enviable over the many options clamoring to replace it?

Show them our tattoos. Tell them our stories. Give them a reason to connect with wine on a personal level.

Here is where wine can smoke its competitors.

This is where we can get WAR separation as an industry. This is where we are more Mookie and less Chris Davis.

The industry is chockful of so many compelling personal stories (check out this terrific write-up of Dirty & Rowdy’s Hardy Wallace for one example) that we don’t need to resort to gimmicks like Bon & Viv Spiked Seltzer’s “made-up” female founders.

AB InBev’s SuperBowl commercial featuring Bon & Viv’s “founders” was a big hit. But this quote from an AB InBev vice-president shows how patronizing and nauseating that ad really was.

“It has two females in a founder position and presented in a different way than we have ever seen alcohol present females characters before,” [Chelsea] Phillips says about the fictional founders depicted in the commercial. “The strength of these women is very important to me. As a female VP, I want to see more of that representation in this space, but I didn’t want it to be a trope. I just wanted it to feel natural… versus more of an overt statement.” — Greg Morabito, Eater, 2/3/2019

Instead of actually promoting a brand founded by women, you make up some female founders to show them in this powerful position? Right….

So much for transparency, eh?

5.) Value

Spiked water–not seltzer, not sparkling. Just boozy water.
Though, is this really that far off from cheap, bulk Pinot grigio?

I can not bang this drum loud enough. The wine industry sucks at Millennial Math.

Not only do we do a poor job of conveying value at all levels of the pricing scale, but we’ve also virtually abandoned the bottom shelf of budget-priced options to craft beer, cider and, now, hard seltzer.

For less than $10, a Millennial can buy a 6pk of dozens of different flavors of various hard seltzers. What kind of sub $10 options is the wine industry giving them? A plethora of mass-produced (and often highly manipulated) Cabs, Chards and Red Blends that all virtually taste the same.

Yeah, eventually all those different hard seltzers are going to start tasting the same too. But then the Millennials can move onto hundreds of craft beer options or cider or cannabis or kombucha or cocktails or who knows what comes next.

The Moral of WAR in the Wine Industry

If you’re not producing–if you’re not fulfilling multiple needs–there is always a replacement.

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Millennial Math — Where’s the value in wine?

Amber LeBeau in Beer, Millennials, Napa Valley, Shopping for Wine, Whiskey, Wine marketing

Published on February 7, 2019

A few days ago I wrote about the “Boredom Factor” that is sapping Millennials’ enthusiasm for wine. But engaging Millennials with things that are new, interesting and authentic is only part of the battle. The industry also needs to reframe the discussion about value and pricing.

Let’s face it, wine delivers horrible “bang for the buck”–especially compared to other alcoholic beverages. This is true at all price points, but particularly at the low-end (and ironically titled) “value wine” segment.

For smaller boutique wineries, worrying about “value wine” might not seem like a big deal. But the issues impacting the top shelf take root on the bottom.

If you want to know why $100+ bottles of Napa Cab are in danger, head to your local grocery store and look around.

Millennial Math in the Grocery Store

I’ll get to our boutique and more premium wine brands below. But let’s start with a cash-strapped Millennial who want to spend less than $10 for something to drink. You could go to the wine aisle and find stuff like this.

Yellow Tail and other under $10 wines

Then there are other options as well–like Barefoot, Arbor Mist, Cooks, Andre’s and more. At this one grocery store, I estimated that around 40% of their wine selection was sub $10. So, diversity, yeah?

But they all fall into the same “sameness” of sweet, simple or boring Cabs, Chards and Red Blends. Sure, you have the occasional gimmick of things like the “living labels” of Treasury Wine Estates’ 19 Crimes. However, after the novelty of a cute label wears off, it’s still the same boring juice in the bottle.

Now right next to the wine department in many stores is a beer department which has likely been greatly expanded thanks to the craft beer boom.

Let’s see what under $10 options our Millennial shopper has there.

22 oz Beer bomber singles

These are 22 oz “bomber” sizes of beer which is only a tad smaller than the standard 750ml (25.4 oz) bottle of wine. In this one Albertsons grocery store, I counted over 80 different SKUs of at least 20 different styles of beer among under $10 bombers. And this was a rather small grocery selection for the Seattle-area market.

If you think of beer styles (Belgian Tripel, New England IPA, Oatmeal Stout, etc.) like grape varieties, the beer department has the wine industry smoked when it comes to answering the “Boredom Factor.”

Even among the same style (like IPA), you are far more likely to find distinct personalities and differences (hoppiness) among various brews than you ever would dream of finding among under $10 Cabs, Chards and Red Blends.

I have a fair amount of industry folks who read this blog so I’m going to ask you to step back and take off your “wine hat” for a moment. If you were a young post-college Millennial shopper with no personal connection (like having visited a winery) or long-term relationship with drinking wine, what would you spend your $10 on?

Are we just waiting for better times?

Yeah, things suck right now for the broke 20-something Millennial. But can we really predict their future buying potential based on the habits of their 20s?

It’s true that most Millennials have not entered their peak earning ages. Likewise, most have not reached the ages when previous generations started embracing wine.

Jason Haas, of Tablas Creek, makes that later point particularly well as he points out some of the silver linings amidst the gloom and doom assessments about Millennials.

The median age of a Millennial is 30, but the Millennials at the peak of the demographic bubble are just 24. Were many Baby Boomers drinking wine at age 30, let alone 24? No. How about GenX? Not much. Millennials are drinking more wine than preceding generations were at the same age, which should be a positive enough trend. — Jason Haas, Are the gloomy messages about the state of the wine industry warranted? I say not for wineries like us. 2/4/2019

I concede Haas’ point and appreciate his optimism. I’ve certainly not hidden my affection or admiration for Tablas Creek’s business acumen. Though Haas is a “proud Gen Xer,” he pretty much runs Tablas Creek like a Millennial with a brand that embraces transparency, authenticity and sustainability along with pushing the envelope for new and exciting wines.

Without a doubt, if more wineries followed Tablas Creek’s example, the Boredom Factor would almost be a non-issue.

But what I fret that Haas’ optimism overlooks is the habits and perceptions that are being ingrained into Millennial consumers right now. Haas’ generation (and the Boomers) had the benefit of a promising economic outlook before them–where there was the potential for growth in earnings and career development.

That is a luxury that many Millennials don’t have and this is something that we are all too aware of. Even if things get a little bit better into our late 30s and 40s, it’s going to be very difficult to shake the mindset and spending habits of our formative 20s and early 30s.

Valuing “Value”

While things are not as bad as they were during the Great Depression, social scientists and economists are already drawing parallels to the spending habits and mindset of Millennials with those of the Silent Generation born between 1925-1945.

Even though the Silent Generation benefited from the post-war boom, many kept the spending habits imprinted on them during the hardship of the Great Depression. Prominent among those retained habits was the idea of stretching your dollar–even when you had more dollars to stretch.

Millennials certainly like to be entertained. We want experiences and to feel connected. And we avoid boredom like the plague.

But we deeply value “value.”

The $15-25 Sweet Spot

Let’s go back to the grocery store and look at the more premium $15-25 “sweet spot” range of wine pricing–with emphasis on the sweet.

Usually, Meiomi is not over $25 so, for the sake of argument, I’m including it here.

When you get up to the higher price points, wine’s competition is not just beer (with many interesting six and twelve packs available in this price range) but also spirits as well. But spirits adds another dimension because they’re far less perishable and the servings are much smaller.

With wine and beer, you ideally want to enjoy it the same day that it was opened. But a comparably priced spirit can last weeks or even months.

Now I can hear wine folks scoffing at the idea of Captain Morgan or Deep Eddy taking away throat share from anyone older than 23. Yeah, I get it. The “Fireball crowd” eventually grows up. But for those folks who lose the sweet tooth and want something with more complexity, the spirits department still offers numerous options–especially among whiskeys.

Plus, because of how long a bottle of whiskey last, a Millennial could even stretch their $25 drinking budget to $40 and still get some very compelling value.

Personally not a fan of the Redneck Riviera but I’d take it over Meiomi any day of the week.

Granted, you have to sometimes deal with the inconvenience of getting the product out of lockup. Also, in some states (like Washington) there are crazy high liquor taxes to account for too.

However, this is all part of the sum-value Millennial Math that we deal with on every trip to the store. What the wine industry needs to concern itself with is how all these figures are adding up.

Banking on Premium Spenders

I want to embrace the optimism that as Millennials feel financially secure, they will turn to wine and start spending in the premium category. That means not only a strong wine industry but also a strong economy overall.

But I can’t shake the feeling that even if Millennials have more money to spend, that they’re not going to be impressed with the value they see in high-end wines. This is something that I’ve personally experienced myself. I’m very fortunate in my financial situation to where I can occasionally splurge on bottles like Opus One, Silver Oak, Cristal and Petrus.

You know what? I’d rather drink Pappy.

I feel this way even though I’m a highly-engaged wine drinker with a personal connection to wine. I’ve been bitten hard by the bug and have a healthy cellar to show for it.

But if you ask me for my brutally honest choice of whether to spend another $2600-4000 on a bottle of Petrus or something like the 1981 Glenmorangie Pride, I would choose the Glenmorangie every time.

And this is coming from someone that keeps a picture of Petrus as their background banner on Facebook!

However, when I step back and let my Millennial nature take over–when I think about the sum-value of what I’m getting compared to what I’m paying–whiskey beats out wine.

If that’s the case with someone like me, then how do you think the math is playing out with my cohorts?

The Petruses of the World are not the ones that need to worry.

Petrus is not going to have problems selling their wine. Even if Millennials aren’t spending at levels of past generations, wineries like Petrus make so little at such high prices that they only need a few folks to bite the bullet each vintage. There is always going to be enough people like me who shell out thousands to attend our Super Bowl–even if it ends up being a 13-3 snorefest.

The real hurt is going to be felt by all the wineries making NFL regular-season and playoff-type wines. They’re the ones that are going to have to convince Millennials that their wines are worth the price of the ticket.

Let’s go back and look at our supermarket shelf at some of the $50-100 options.

That is an excellent price on the Grgich. The only thing that kept me from pulling the trigger was wondering how long it had been standing upright under the supermarket’s harsh lights.

Again, why spend $50-100 for something that needs to be enjoyed mostly in one night (unless you spend another $200+ for a preservation system like the Coravin) over something you could stretch for months?

Wine’s saving grace has been that only a small segment of drinkers have developed a taste for brown spirits like whiskey, tequila and rum. But those categories are growing–especially among Millennials and women.

If the boredom factor doesn’t kill off the $100+ Napa Cab, brown spirits certainly will.

But it all starts back in the beginning, with the spending habits and perception of value that Millennials are developing now with their under $10 and $15-25 options. Here is where wineries are losing the battle before the war even begins.

Yeah, Millennials wanderlust is great and can definitely help wineries that are offering different and exciting wines. But that same wanderlust also fuels our openness in trying other beverages like craft beer and brown liquors. The more we try them, the more those other options become players in the “sum-value” game of Millennial Math.

And, right now, that math is seriously working against the wine industry.