Tag Archives: Wine laws

Education is Not Going to Save the Wine Industry

There’s a public Facebook group that I belong to called Friends Who Like Wine In The Glass. Ran by Steve and Vashti Roebuck of Wine In The Glass, it has nearly 10,000 members who span everything from regular wine lovers to industry folks and even Masters of Wine.

It’s always a good place to pop in for interesting wine conversations such as this recent thread by Larry Baker, aka Larry the Wine Guy. The thread started with Baker posting his latest video about the confusing 75% loophole for labeling American wines by grape varieties and the challenges of trying to educate consumers that their favorite Cab, Merlot or Pinot noir might actually be a red blend.

I know where Larry and other wine stewards/somms are coming from.

As someone who spent many years in the retail trenches, I can sympathize with Larry’s frustrations. The loophole is confusing. It’s also really tough dealing with people so hung up on a grape variety that they’re closed off to trying any other wine which doesn’t have that magical name on the label.

Yet, many American varietal wines in the sub $20 category can be very “red blend-y”–either because of style or a winemaker using the full stretch of that 75% loophole. I understand the desire to want to educate consumers on this loophole and use that enlightenment as a segue to get them to break out of their mono-varietal rut. However, watching Larry’s video and picturing these types of conversations happening on the sales floor made me cringe.

I know Baker is a good guy and has the best of intentions. I’m sure he’s had many great customer interactions and successes. But I’m also absolutely certain that his sincere, but exacting approach to educating consumers has turned off more than a handful as well.

(Update: Since this blog has been published, Baker has shared some more of his thoughts on sales in the comments of his original post that are worth reading for his perspective.)

I’m not writing this to pick on Larry.

He’s definitely not an isolated case.

Every single person reading this blog can think of sommeliers, wine stewards or tasting rooms associates that they’ve encountered who’ve leaned a bit too hard on the wine education front. While some of it can be driven by arrogance and snobbery, for most folks (like Larry), it’s more of an over-extension of passion. When you love wine and what you do, it’s hard not to want to share that and use your knowledge to encourage folks to try new things.

Aviation mechanic using a greasing gun image by Mass Communication Specialist Seaman Apprentice Kyle Steckler. Uploaded to Wikimedia commons under PD US Navy

You only need to apply a little grease to ease the friction.


That passion isn’t bad. Wine education isn’t bad. But it’s imperative for anyone dealing with consumers to understand that education is not the engine that drives sales. It’s service, of which education is merely the grease that helps smooth things along.

But you know what happens when you over-grease the gears? Things run hot and break down. Customer service breaks down and the whole engine that we need to sustain the wine industry starts grinding to a halt.

Slathering on even more grease is not going to fix that.

As the US deals with declining wine sales, getting that engine back up and running is at the top of many concerns. However, anytime the industry deals with disappointing sales, there’s always a knee-jerk reaction that more education must be the answer.

Why is no one buying Sherry? It’s too confusing!

Why are Rieslings such a tough sell? People don’t understand them!

You could play this script out for most any wine topic.  It’s like there is a paradox that the answer is to both dumb things down while using education as a hammer to break through consumer ignorance. But what we should be doing is putting away both the crayons and hammers. We don’t have an education problem in the industry.

We have an empathy problem.

Frequent readers of the blog know that this is a tune that I’ve sung many times before. From my posts One Night Stands and Surprises about wineries, Wine Shops’ Biggest Mistake to my recent ponderings of When Did We Stop Treating People Like People?, I’m going to keep banging this drum.

In my career, there’s been no lesson more valuable to learn than that consumers want more listening and less lecturing. They want to be heard, seen and served–not sold to. Any winery, restaurant or wine shop that teaches “selling skills” should throw out those training manuals and start over. It won’t be selling skills that get you sales; it will be your service skills.

campfire photo by Dirk Beyer. Uploaded to Wikimedia Commons GFDL and cc-by-sa-2.5

While the logs are undoubtedly vital, no air=no fire.

Those are the skills that will teach you to meet the customer where they are–at their level of knowledge and comfort. While service skills value the use of education to help smooth things along, they know that its use must be measured and not overdone.

Holding a consumer’s interest in wine is like maintaining a fire. It starts with a spark and some kindling. As it grows, you throw on logs (new wines, new knowledge) as fuel to keep it going. But you can’t toss too many on without smothering out the whole thing. The fire needs ventilation and air to sustain itself.

Too many wine professionals smother consumers with education and expertise.

I’m not saying that the industry should turn “anti-expert.” I don’t think anyone can read this blog and come away with the idea that I’m against wine education and expanding folks’ knowledge.

Education is important. Greasing the gears and throwing logs on the fire is essential.

But it’s not the engine or air which our industry needs to survive. Service is.

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Joe Wagner vs the Oregon Volcano

Joe Wagner, with his Copper Cane Wines & Provision, has been one of the most successful wine producers of the 21st century. But that fame and success doesn’t shield him from the ire of lawmakers and Oregon wineries who feel he has been playing fast and loose with state and federal wine labeling laws.

Joe Wagner's Elouan

These producers, led by Jim Bernau of Willamette Valley Vineyards, believe that Wagner’s wine labels confuse consumers and devalue the branding of Oregon. Wagner contends that he is being truthful about where the grapes are coming from and that his wines bring Oregon to the attention of more drinkers.

While the legal aspects of labeling will be debated and hashed out by government agencies (with so far Wagner and his labels losing the battle), I wanted to investigate the idea of whether Wagner’s wines help or hurt the image of the Oregon wine industry among consumers. To test that, I held a blind tasting featuring the offending Wagner wines against more traditional Oregon Pinot noirs.

I wanted to see if Wagner’s wines stood out and if there’s smoke behind this controversy erupting in Oregon.

The Background

Joe Wagner started his winemaking career with the establishment of Belle Glos in 2001. Focusing on vineyard designated Pinot noirs, Wagner was inspired by the wines of Kosta Browne and soon built Belle Glos into a 100,000 case production. In 2006, he introduced Meiomi–a unique Pinot noir with Riesling, Gewurztraminer, Chardonnay and sometimes Grenache blended in.

By 2015, Meiomi was selling more than half a million cases a year. Wagner cashed in that success by selling the brand to Constellation Brands for $315 million. That sale allowed him to focus on his other brands–including Elouan which was founded in 2014 to highlight Oregon Pinot noir.

The Controversy and Current Rules for Oregon Wines

Elouan Reserve labeled as from the Rogue Valley.

Wagner makes all his Oregon wines (Elouan and the Willametter Journal) in California–primarily at Copper Cane’s Rutherford winery.  In interviews, Wagner has stated his reasoning for trucking the grapes down to California was to maintain quality control.

Compared to federal standards, the rules for labeling wines in Oregon are more restrictive. For instance, to have a wine varietally labeled from Oregon, it must be at least 90% of the stated variety. Federal laws only mandate 75%.

To list an AVA on an Oregon wine, it must contain at least 95% of fruit sourced from that AVA. Crucially, the wine must also be produced solely within the state of Oregon. While the federal standard for AVA designation is only 85%, like Oregon, Federal laws also dictate that a wine using an AVA needs to be “fully finished” in the state containing the AVA. However, it does allow wines to be finished in adjacent states if it labeled under a more generic state designation such as “Oregon”.

While the basic Elouan has Oregon listed as it designation, the reserve wine uses the Rogue Valley AVA. With the wine being “fully finished” in California, this does seem to be a clear violation of labeling usage. Likewise, the case packaging of Elouan makes reference to the Willamette Valley, Rogue and Umpqua Valley. For the Willametter Journal, the grape source is listed as the “Territory of Oregon” which is a fanciful term not currently recognized as an approved AVA. Additionally, Willamette is prominently highlighted in red ink on the label as if it was an AVA designation.

Mega Purple — Mega Illegal In Oregon

The Willametter Journal has the word “Willamette” highlighted on the label in bright red.

Another unique aspect of Oregon wine law noted by Jim Bernau, is the use of additives like Mega Purple, Ultra Red, Purple 8000 and Red 8000. These are illegal in Oregon since they are based on teinturier grapes like Rubired that are not currently grown at all in the state. Essentially, the law views the use of these color and mouthfeel enhancing additives as illegally blending in grapes grown elsewhere.

Wagner and Copper Cane’s representatives have denied using these additives. However, there is wide spread belief in the industry that they are used frequently in California–particularly for inexpensive Pinot noirs.

The Big Questions

In setting up the blind tasting, I wanted to look at three focus points that I’d hope would answer the overarching question of whether Wagner’s wines help or hurt the branding of the Oregon wine industry.

1.) Does Joe Wagner’s Oregon wines stand out when compared to other, more “traditional” Oregon producers?

2.) If his wines do stand out, is this because of a signature winemaking style that overwhelms terroir? While we can’t prove if he is blending in other grape varieties (like he did with Meiomi) or using additives such as Mega Purple, a strong winemaking signature could give credence to the idea that his wines may “confuse” consumers about what Oregon Pinot noirs usually taste like.

3.) And finally, when compared side by side, what wines do people enjoy drinking?

The Tasting Format and Participants

Several of the folks who graciously offered their palates for the blind tasting.

To help with answering questions #2 and #3, I included 3 of Joe Wagner’s California wines in the lineup to go along with the 3 offending Oregon wines. While not part of the controversy, I thought the inclusion of Wagner’s popular California Pinot noirs could shed light on if he has a signature winemaking style that his Oregon wines would also demonstrate.

The Wagner Wines

2017 The Willametter Journal Oregon
2016 Elouan Oregon
2015 Elouan Reserve Rogue Valley
2014 Belle Glos Diaryman Russian River Valley
2016 BÖEN Santa Maria Valley
2016 Tuli Sonoma County

Included in the tasting were 15 Oregon wines from other producers. Additionally, there was 1 wine from British Columbia–the 2016 Quill from Blue Grouse Estate–that a guest brought. While originally I wanted to limit this to just Wagner and Oregon wines, I thought the Quill could serve as an interesting control. Would it be pegged as an “outsider” or “Wagner wine”? Or would it slipped in seamlessly with the Oregon wines. If so, that could indicate that perhaps the distinctiveness of Oregon wines are not as clear cut.

Oregon wines featured:

2016 Erath Oregon
2016 Willamette Valley Vineyards Whole Cluster
2015 Domaine Loubejac Selection de Barriques
2015 Citation, Willamette Valley
2014 Domaine Drouhin, Dundee Hills
2016 Stoller Estate Reserve
2013 Patton Valley Vineyards West Block
2014 Welsh Family Wines Bjornson Vineyards, Eola-Amity Hills
2011 Siltstone Guadalupe Vineyard, Dundee Hills
2016 Marshall Davis, Yamhill Carlton
2014 Noel Vineyard, Willamette Valley
2012 Colene Clemens Margo
2016 Ayoub Pinot Noir Memoirs Dundee Hills
2012 Cristom Pinot Noir Mt. Jefferson Cuvée Willamette Valley
2009 Coelho Winery Pinot Noir Paciência Willamette Valley

The wines were all served blind with only myself knowing the identities. Since some of the Wagner wines like the Belle Glos and Elouan Reserve had visible wax capsules, I placed those wines along with random Oregon bottles in one of 8 different decanters.

While there was a handful of industry folks from the retail side, the vast majority of the participants were regular wine consumers.

The Results

More traditional Oregon wines like the Stoller Reserve, Patton Valley West Block and Marshall Davis were the runaway favorites of the tasting.

During the tasting, many participants began noticing a trend of some wines being noticeably darker and fruitier–especially compared to other wines. A couple wines even stained glasses in ways that usually aren’t expected of Pinot noir.

The conversation emerged that in order to “Pin the tail on the Wagner”, one needed to look for the least “Pinot-like” wines of the bunch. This would turn out to be a worthwhile strategy that several tasters adopted.

After the tasting I asked the participants to first pick out their favorite bottles. The results were overwhelming for Oregon with the 2016 Stoller Estate Reserve, 2016 Marshall Davis and 2013 Patton Valley West Block getting multiple votes. The BC wine, the Quill, also got some votes as a favorite with many tasters thinking it was an Oregon wine from areas like McMinnville.

But the surprise of the favorite reveal was the inclusion of one of the controversial Oregon Wagner wines–the 2017 Willametter Journal. While the wine was more lush than the others, tasters compared it favorably to warm vintage Oregon Pinot noirs from AVAs like Ribbon Ridge and Eola-Amity Hills.

Pin the Tail on the Wagners

With the Willametter Journal already revealed, the quest then moved to see if the tasters could identify the 5 remaining Wagner wines. It should be noted that several participants had the Willametter Journal pegged as a Wagner.

Voting on what was a Wagner wine.

In the end, the tasters identified all but one Wagner wine blind. The 2015 Elouan Reserve Rogue Valley was the most obvious Wagner. It was near unanimously picked as being the least “Pinot noir-like” wine in the entire tasting. Several tasting notes alluded to a “root beer soda-like” quality and compared it to other grapes like Syrah and Zinfandel.

The only Wagner wine to escape detection was the 2016 BÖEN Santa Maria Valley. This one reminded a few tasters of Oregon wines from areas like Dundee and the Eola-Amity Hills.

Most surprising of all were two Oregon wines that were pegged by multiple tasters as Wagner wines–the 2016 Willamette Valley Vineyards Whole Cluster made by Jim Bernau and the 2015 Citation made by Howard Rossbach who founded Firesteed Cellars. The 2016 Erath Oregon also got some votes for being a “Wagner wine” as well.

Takeaways

Both the Citation and Willamette Valley Vineyards Whole Cluster were popular picks as Wagner wines.

For the most part, Joe Wagner’s Oregon wines stood out and tasted noticeably different compared to other Oregon Pinot noirs.

However, it is extremely interesting that the best selling Oregon wines (at least from a volume perspective)–the Willamette Valley Vineyards Whole Cluster and Erath–struck so many tasters as potentially being Wagners. While we didn’t have a bottle of Firesteed Cellars (recently sold to Vintage Wine Estates in 2017) in the tasting, the identification of Rossbach’s Citation as a potential Wagner goes along with that trend.

Together, those three wines (WVV, Erath and Firesteed) dominate restaurant wine lists and supermarket retail for Oregon wines. They’re popular wines that appeal to many consumers’ palates.

Likewise, Joe Wagner has built his success on producing wines that strike a cord with consumers–especially at restaurants and supermarket retail. While his style is distinctive, it is a style that sells. It’s also very telling that the Willametter Journal, one of the wines at the heart of the controversy, was selected as a favorite even as it was noted for being very different from the other Oregon wines.

However, overall, the Willametter Journal was an outlier. While wines like Stoller, Patton Valley and Marshall Davis might not sell at the volume of Wagner’s wines (or WVV, Erath and Firesteed for that matter), when tasted side by side–the vast majority of tasters went towards these more traditional-style Oregon Pinots.

Help or Hurt?

The Erath Oregon Pinot noir, now own by Ste Michelle Wine Estates, is made in a style that reminded quite a few tasters of Joe Wagner’s wines.

Now to the question of whether Joe Wagner’s Oregon wines help or hurt the image of Oregon wines among consumers.

The results are a mix-bag.

Does his wines represent Oregon? Definitely not at the top tier.

But at the entry-level? That’s a hazier question.

It’s hard to make the argument that Wagner’s “hurting” Oregon when many of the most popular Oregon wines seem to appeal to the same palate his wines do. These wineries (like Willamette Valley Vineyards, Erath and Citation/Firesteed) may not be using the same techniques as Wagner but, whatever they are doing, they’re making easy-drinking and crowd pleasing wines that hit the same notes as Joe Wagner’s wines.

While I’m sure there are a few Oregon wine producers who would like to throw Joe Wagner into a volcano, I don’t think we can dismiss the likelihood that his wines (or similarly styled Pinots) will be the tipple of choice at the luau.

Regardless of how they’re labelled.

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