Archive for the ‘Wine’ Category

When are high wine prices justified?

Saturday, February 13th, 2010

In wake of some of the latest chatter about The Wine Trials 2010 (this one from Joe Briand, wine buyer for New Orleans’ excellent Link Restaurant Group, e.g. Cochon, Herbsaint, with a response from Wine Spectator executive editor Thomas Matthews), I thought it was time for a quick clarification of first principles here.

Wine-Trials-2010-lrPeople have sometimes (often, maybe) misinterpreted The Wine Trials (and The Wine Trials 2010) as making the claim that no expensive wines are worth the money, or that cheap wine is generally “better” than expensive wine. In fact, I make neither one of those claims in the book.

Rather, my basic points are these:

(1) Evidence has shown that most everyday wine drinkers (not wine professionals) don’t prefer more expensive wines to cheaper wines in blind tastings. This is separate from the question of whether the properties of expensive wines are aesthetically superior in the minds of experts.

(2) Many (but certainly not all) expensive wines, such as the luxury brands from LVMH—which are advertised much like the group’s TAG Heuer watches, De Beers diamonds, Guerlain perfume, or Louis Vuitton handbags—are overpriced because such a large portion of their cost base is spent on marketing. This doesn’t just go for superpremium wines like LVMH’s Château d’Yquem, Krug, and Dom Pérignon; it also goes for brands like Cloudy Bay, a straightforward New Zealand Sauvignon Blanc whose price—without any apparent change in the production method—rose from about $15 per bottle to about $30 per bottle after LVMH acquired the brand in 2003 and began marketing Cloudy Bay as a luxury product.  To me, when the consumer dollar is going more toward advertising than toward materials or production, it’s a paradigm case of overpricing. It bothers me that the mainstream wine media doesn’t take brands to task for this. (more…)

“Parker’s Wine Bargains” lists same exact wine twice, with totally different reviews

Saturday, December 12th, 2009

parker wine bargainsIn the course of reading Robert M. Parker, Jr.’s new Parker’s Wine Bargains: The World’s Best Wine Values Under $25, I noticed a couple of strange things. First, I was surprised to find the same winery, Casa Lapostolle—one of Chile’s most prominent producers—listed in both the Argentina and Chile chapters of the book, which were each authored by Wine Advocate critic Jay Miller (who was recently criticized in the Wall Street Journal for accepting a lavish junket in Argentina, which was first exposed by Dr. Vino).

And in the index, there are two successive entries for the winery: “Casa Lapostolle (Argentina), 14; Casa Lapostolle (Chile), 84.”

I figured this was just an editing/database mistake. It happens.

But things got stranger when I actually compared the reviews of the exact same wines in the two chapters. Aside from the words “black currant” and “black fruits,” their descriptions turned out to be totally different from each other. Here they are:

(From Argentina chapter) “Casa Lapostolle Merlot Cuvée Alexandre Apalta Vineyard. This Merlot has an attractive nose of black currant, blueberry, vanilla, and clove. The wine has good weight on the palate with layers of black fruits and a firm structure. Drink it during its first 6 years of life.”

(From Chile chapter) “Casa Lapostolle Merlot Apalta Vineyard Cuvée Alexandre. The Merlot Apalta Vineyard Cuvée Alexandra [sic] has aromas of cedar, spice box, black cherry, and black currant followed by a smooth-textured, ripe Merlot with ample savory black fruits, good depth, and a moderately long finish.”

Blueberry, vanilla, and clove have been replaced by cedar, spice box, and black cherry. Is there a wine-adjective dartboard in the house?

Moving on to the second double…

(From Argentina chapter) “Casa Lapostolle Cabernet Sauvignon Cuvée Alexandre Apalta Vineyard. Similarly styled but with the focus on black currants. It has enough structure to evolve for 2–3 years in the bottle and will drink well during its first 8 years of life.”

(From Chile chapter) “Casa Lapostolle Cabernet Sauvignon Apalta Vineyard Cuvée Alexandre. The Cabernet Sauvignon Apalta Vineyard Cuvée Alexandre has an expressive bouquet of smoke, pencil lead, spice box, black cherry, and black currant. The wine’s black fruit flavors linger into a medium-long finish.”

At least the black currants travel well.

Mistakes like this do happen. They don’t discredit the critics behind them; we all have slightly different experiences when we taste the same wine twice. And in this case, although the tasting notes are totally different, they’re not quite mutually exclusive, nor do they render dramatically divergent judgments/opinions about the wine (Parker ratings are not included in the under-$25 book). But I see it as yet another reminder of the arbitrariness of these fruit/spice adjectives, even in the hands of the world’s highest-end wine critics—which is particularly troubling when these opinions turn out to be so powerful in the marketplace.

New study suggests that Wine Spectator advertisers get higher ratings

Thursday, December 10th, 2009

The lead paper in the new issue of the Journal of Wine Economics is a study by Jonathan Reuter arguing that Wine Spectator wine ratings for advertisers were about one point higher than ratings for non-advertisers, when controlled against ratings from Wine Advocate. This is in spite of the magazine’s stated policy of tasting wines completely blind.

This from the abstract:

“In markets for experience goods, publications exist to help consumers decide which products to purchase. However, in most cases these publications accept advertising from the very firms whose products they review, raising the possibility that they bias product reviews to favor advertisers…Although the average Wine Spectator ratings earned by advertisers and non-advertisers are similar, I find that advertisers earn just less than one point higher Wine Spectator ratings than non-advertisers when I use Wine Advocate ratings to adjust for differences in quality.”

These are wine ratings, not the restaurant Awards of Excellence, which I’ve written about in the past (more…)

Didn’t brine your Thanksgiving turkey? Don’t worry (by Justin Yu)

Wednesday, November 25th, 2009

“You have got to brine it,” said Andrea Van Der Heyden of Van Der Heyden Vineyards as she hulked over my monstrous 28¼-pound Heritage turkey (a beautiful find, as it was feasting on Zinfandel vines the day before). Clearly, Andrea, like many across America during this time of year, was going out of her way to help me overcome the pitfalls of dry turkey.

As she should.

But with “brine turkey” at #12 on Google Trends today, it’s clear that the turkey-brining craze has hit new levels this year. Is the Food Network driving this bus? Alton Brown (who comes up in the first page of hits) preaches it. Sara Moulton swears by it. Just like roasting your turkey with a wine-soaked piece of cheesecloth was last year, or basting your turkey with orange juice was a few years earlier, it seems as if every Thanksgiving seems to come out with a new line of tools, gadgets, and fool-proof plans for housewives all across America to jump all over like the fall fashion line so they don’t serve the notorious dry piece of poultry to their in-laws. This year, there was an entire section of my local grocery store dedicated to brining needles, brining bags, and other brining accessories.

Don’t get me wrong: brining works. (On why it works, I’m sure the Food Network is running Good Eats Turkey episodes left and right, but Serious Eats really nails it here.) But brining can’t save an overcooked bird. It also takes a lot of time, it takes a lot of space, and there are more important things to be worrying about before Thanksgiving Day (like making sure your fantasy football team is set for the shortened week).

In my case, brining the 28¼-pound turkey that I acquired from Andrea would have required, at the least: (1) a bathtub; (2) a time machine (more…)

Do taste and smell adjectives signal value, or do they create it?

Thursday, July 2nd, 2009

We may disagree about our favorite artists and musicians, but it’s relatively easy to agree that a particular color is blue, or that a particular note is C-sharp. They’re described by wavelengths and frequencies along a clearly defined spectrum. That’s why the technologies of visual and auditory reproduction—photo, video, audio—work so well, relatively speaking.

Worth a thousand words?

Worth a thousand words?

With taste and smell—the so-called “chemical” senses, which are more complex (humans have about 400 different types of olfactory receptors) and less well understood than the others, we don’t have the luxury of those points of reference. That’s why we so often resort to loose analogies—“tastes like chicken”—and it’s also why reproducing tastes and smells is so difficult (grape soda doesn’t taste much like grapes, and nobody’s yet synthesized a bottle of 1945 Pétrus—an activity that would surely yield tremendous profit).

To challenge this barrier, we resort to analogy. Coffee tastes like nuts and chocolate; Sauvignon Blanc smells like grapefruit and cat pee. In a Sauternes, you might sense the brine of the first green olive you tasted in Italy; in a Pedro Ximénez sherry, the viscous maple syrup that your grandmother once drizzled on your pancakes.

But how carefully are we really choosing these adjectives and analogies? (more…)

Are empty wine bottles on eBay being used for counterfeiting?

Thursday, June 25th, 2009

One of the most thought-provoking papers at this year’s meeting of the American Association of Wine Economics was presented by Günter Schamel, a professor at the Free University of Bolzano.

picture-6

Not empty for long?

Schamel’s study, which is still in progress, has thus far looked at a data set of 260 eBay auctions of empty wine bottles. In his model, the most powerful predictive variable—explaining both the incidence of sale and the final auction price of an empty bottle—is “the price a full and presumably authentic bottle could potentially fetch in the marketplace.”

Schamel argues that this is “powerful evidence that the empty bottles might go on to be refilled. Why otherwise would someone want to pay more than 100 euros for an empty bottle of 1982 Chateau Lafite-Rothschild rated with 100 Parker points? Presumably, because it is worth a lot more once it is filled up again.”

Certainly, notwithstanding a recent incident in which a customer at a London restaurant sent back a £18,000 magnum (more…)

In Sweden, all wine stores are organized by price

Wednesday, June 17th, 2009

Sweden has one of the world’s most controlled alcohol regimes, with steep taxation, a state-controlled retail monopoly, and a 20-year-old minimum age to buy alcohol at a store (and they really card, too). The only store at which a consumer can buy wine, beer, or liquor in Sweden is Systembolaget, the state-controlled retail monopoly.

Is this a good thing or a bad thing? My intuition (and that of the economists I’ve been speaking with here in Stockholm) is the latter—first and foremost, as in Quebec, it’s a major headache for wine producers, whose distribution chances hang on the (often arbitrary) whims of just one decisionmaker. Opening hours of stores are criminally short. Pricing is screwy, in part because per-unit (rather than per-krona) taxation results in cheap wine being overpriced and expensive wine underpriced. As ever, monopolies throw everybody’s incentives out of whack.

sweden-wine-1sweden-wine-21

sweden-wine-3

But here’s one definite consumer-oriented boon that results: in an of-the-people move, Systembolaget wine stores—that is, all wine stores in Sweden—are organized first by color, second by price. There’s the 69-kronor-(US$8.71)-and-under red wine section; there’s the 70-kronor-(US$8.84)-to-99-kronor (US$12.50) red wine section; and then there’s the 100-kronor (US$12.63)-and-up red wine section.

Although I’ve seen US wine stores with special $10-and-under sections and such, I’ve never seen an entire store organized this way. Intuitively, at least, it seems to be more aligned with consumers’ game plans as organization by region, grape, and so forth.

Why don’t non-monopoly stores organize this way?

My guess would be that profit-minded stores, for understandable reasons, don’t want to lose the chance to upsell—they want people to walk away with a wine more expensive than the one they came looking for.

What the F.A.A. and Robert Parker’s Wine Advocate have in common

Saturday, June 6th, 2009

Ethics scandals are politico porn. They’re also fertile ground for undeserved scapegoating. But there’s one category in which, across the board, there’s not nearly enough public stoning going on: the world of information intermediaries. On the government side, that means regulatory agencies; in the private sector, it’s the critics, the expert witnesses in capitalism’s de facto justice system.

Information intermediaries, we’re to understand, are society’s check against puffery. They make careers of trustworthiness and accountability. In society’s service, they apply rigor to the claims of corporations and analyze their standards. For this hard work, they’re rewarded by the marketplace and by the United States—sometimes handsomely, sometimes not.

Two bits of recent news bring about two otherwise disparate intermediaries, both preeminent in their niches—Robert Parker’s Wine Advocate, the publication whose critical appraisals are one of the central determinants of a wine’s success or failure on the marketplace, and the Federal Aviation Administration, the agency whose critical appraisals are the primary safety check against America’s airlines—systematically abusing that authority.

jmill

Jay Miller: Disfrutando?

Parker’s is one of the few wine publications that don’t accept advertising, for which he deserves praise. And it’s certainly acceptable to take free samples of wine from producers—that’s often the only way to taste new releases before they’ve gone to market. But the recent transgressions of Jay Miller, Robert Parker’s right-hand man, are spectacular indeed. In another classic case of the traditional print media jumping on the bandwagon of a topic that had been exposed quite a bit earlier by an incisive blogger—in this case, Tyler Colman, who goes by “Dr. Vino”—Miller’s series of all-expenses-paid vacation/junkets, financed by wine producers, have finally been reported by the mainstream media in a recent Wall Street Journal article.

Some of rumors about Miller’s behavior in Argentina go quite a bit further in scandalousness (more…)

How long does leftover wine keep in the bottle? Wine-preservation myths and a simple solution

Monday, May 25th, 2009

 

Fresher wine, or just a pretty face?

Fresher wine, or just a pretty face?

I’m not sure which of the following two myths is more ridiculous: the myth that you can re-cork a half-drunk bottle of wine and keep it around for a week and have it “still be good,” or the mutually exclusive, but equally misguided, myth that you can keep wine from going bad with commercial “wine preserver” devices. The media is largely responsible for both of these myths—the first because of ignorance, and the second, perhaps, because of advertorial content and the power of suggestion.

What’s amazing is that almost nowhere in the media do I see discussed the magic solution to keeping leftover wine fresh—the solution that winemakers already know about—which I’ll discuss below. First, though, about the media myths:

Myth 1. You can re-cork wine and keep it around. I’m usually a fan of Consumer Reports, but their wine coverage has long been weak, and they got it embarrassingly wrong (and did the wine world a disservice) when they suggested that (more…)

Why inexpensive American wine is so bad

Thursday, May 21st, 2009

The New Yorker’s recent profile of Fred Franzia has sparked a debate amongst the wine pundits on the question of why it’s so hard to find good American wines under $10, under $12, or even $20. I had an interesting conversation on this topic with Tyler Colman the other day. There’s a debate on the topic on Tyler’s blog, Dr. Vino, where he asks his readers to weigh in on these potential theories:

“Short-ish history of American wine with relatively few small growers, recent industry consolidation, the soil and/or climate, high land prices, producer greed/pride, the three tier distribution system, or the consumer as chump.”

napawelcome

Beautiful place, for a placebo

Eric Asimov at the New York Times has also recently commented on the difficulty in finding good, cheap American wines on his blog and in print. In the print article, he seems to gravitate toward the “shortish history” explanation, together with a discussion of a dominant social/consumer norm in the US wine market that leads producers to gravitate toward a single, uninteresting style (a style that I think has been promoted by many wine magazines). Asimov writes:

“In modern American wine history — post-1960 — the selection of grapes is monochromatic…In effect, then, California produces a small amount of top-flight wine along with an ocean of generic wine that seeks to imitate the top echelon, often through artifice like oak substitutes and additives. All too often, the choices are expensive cabernet or chardonnay, and imitation expensive cabernet or chardonnay.”

A similar perspective on Asimov’s blog:

“Very little wine is flawed in this day and age, now that we understand the science of winemaking and the importance of hygiene and temperature control in the mass-production of wines. But it is insipid… (more…)