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	<title>Blind Taste / Robin Goldstein &#187; Wine</title>
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	<link>http://blindtaste.com</link>
	<description>A critical review of food, drinks, culture, and cognition</description>
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		<title>“Recent Advances in Bullshit Reduction” at the International Food Blogger Conference</title>
		<link>http://blindtaste.com/2010/08/27/speaking-on-blogger-freebie-disclosure-at-the-international-food-blogger-conference/</link>
		<comments>http://blindtaste.com/2010/08/27/speaking-on-blogger-freebie-disclosure-at-the-international-food-blogger-conference/#comments</comments>
		<pubDate>Fri, 27 Aug 2010 11:18:28 +0000</pubDate>
		<dc:creator>Robin Goldstein</dc:creator>
				<category><![CDATA[Behavioral economics]]></category>
		<category><![CDATA[Cognitive taste]]></category>
		<category><![CDATA[Fearless Critic]]></category>
		<category><![CDATA[Law]]></category>
		<category><![CDATA[Regulation]]></category>
		<category><![CDATA[Wine]]></category>

		<guid isPermaLink="false">http://blindtaste.com/?p=728</guid>
		<description><![CDATA[My talk at the International Food Blogger Conference in Seattle, “Recent Advances in Bullshit Reduction,” along with my panel session and discussion/debate with Robert Schroeder of the Federal Trade Commission and Foodista.com CEO Barnaby Dorfman about the new FTC guide to the disclosure of freebies and financial relationships in blog reviews, will be broadcast live [...]]]></description>
			<content:encoded><![CDATA[<p>My talk at the <a title="IFBC" href="http://www.foodista.com/ifbc2010/agenda/" target="_blank">International Food Blogger Conference</a> in Seattle, “Recent Advances in Bullshit Reduction,” along with my panel session and discussion/debate with <a title="Robert Schroeder" href="http://www.foodista.com/ifbc2010/robert-schroeder/" target="_blank">Robert Schroeder</a> of the Federal Trade Commission and <a title="Foodista.com" href="http://" target="_blank">Foodista.com</a> CEO Barnaby Dorfman about the new FTC guide to the disclosure of freebies and financial relationships in blog reviews, <span style="text-decoration: line-through;">will be <a title="UStream" href="http://www.ustream.tv/channel/ifbc">broadcast live on UStream at 3pm Pacific time.</a></span> was scheduled for streaming video, but the video had technical problems and dropped out in the middle of my panel session, so for those who are interested, I’ve posted the PowerPoint presentation (with images downsampled) <a href="http://blindtaste.com/wp-content/uploads/2010/08/Robin-Goldstein-Bullshit-Reduction-sm.pdf">here.</a> If you’re interested, you can also check out the <a href="http://blindtaste.com/2008/08/15/what-does-it-take-to-get-a-wine-spectator-award-of-excellence/" target="_blank">original Osteria L’Intrepido post</a>, my <a href="http://blindtaste.com/2008/08/31/the-truth-behind-wine-spectators-significant-efforts-to-verify-the-facts/" target="_blank">followup</a> to <em>Wine Spectator</em>’s response, and <a href="http://blindtaste.com/category/wine-spectator-expose/">a few other related entries on my blog</a>.</p>
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		<title>Counterfeit wine below the radar: the case of Tesco</title>
		<link>http://blindtaste.com/2010/07/07/counterfeit-wine-below-the-radar-the-case-of-tesco/</link>
		<comments>http://blindtaste.com/2010/07/07/counterfeit-wine-below-the-radar-the-case-of-tesco/#comments</comments>
		<pubDate>Wed, 07 Jul 2010 19:28:51 +0000</pubDate>
		<dc:creator>Robin Goldstein</dc:creator>
				<category><![CDATA[Behavioral economics]]></category>
		<category><![CDATA[Cognitive taste]]></category>
		<category><![CDATA[Fearless Critic]]></category>
		<category><![CDATA[Law]]></category>
		<category><![CDATA[Regulation]]></category>
		<category><![CDATA[The Wine Trials]]></category>
		<category><![CDATA[Wine]]></category>
		<category><![CDATA[counterfeit]]></category>
		<category><![CDATA[fake wine]]></category>
		<category><![CDATA[hatch mansfield]]></category>
		<category><![CDATA[law and economics]]></category>
		<category><![CDATA[libel]]></category>
		<category><![CDATA[liebfraumilch]]></category>
		<category><![CDATA[louis jadot]]></category>
		<category><![CDATA[pouilly-fuisse]]></category>
		<category><![CDATA[tesco]]></category>
		<category><![CDATA[wine law]]></category>

		<guid isPermaLink="false">http://blindtaste.com/?p=716</guid>
		<description><![CDATA[Britain’s Sun recently reported that supermarket giant Tesco sold two bottles of counterfeit Louis Jadot Pouilly-Fuissé, distributed by Hatch Mansfield, to a customer named Danny McGowan of Clacton, Essex, who described the fake bottle as having a label that “looked photocopied.” Apparently, the bottle was on sale for £5, down from a usual £14.49. (As of this writing, the Pouilly-Fuissé [...]]]></description>
			<content:encoded><![CDATA[<p><a href="http://blindtaste.com/wp-content/uploads/2010/07/Screen-shot-2010-07-07-at-10.31.42-AM.png"><img class="alignleft size-medium wp-image-717" title="Screen shot 2010-07-07 at 10.31.42 AM" src="http://blindtaste.com/wp-content/uploads/2010/07/Screen-shot-2010-07-07-at-10.31.42-AM-300x191.png" alt="" width="300" height="191" /></a>Britain’s <em>Sun</em> recently<em> </em><a title="Tesco sale" href="http://www.thesun.co.uk/sol/homepage/news/3021702/Tesco-sold-man-two-fake-bottles-of-posh-wine.html" target="_blank">reported</a> that supermarket giant <a href="http://www.tesco.com">Tesco</a> sold two bottles of counterfeit <a title="Louis Jadot" href="http://www.louisjadot.com/" target="_blank">Louis Jadot</a> Pouilly-Fuissé, distributed by <a href="http://www.hatchmansfield.com/">Hatch Mansfield</a>, to a customer named Danny McGowan of Clacton, Essex, who described the fake bottle as having a label that “looked photocopied.” Apparently, the bottle was on sale for £5, down from a usual £14.49. (As of this writing, the Pouilly-Fuissé was on the <a title="Price list" href="http://www.tesco.com/vinplus/ListePrix.pdf" target="_blank">price list</a> at the Tesco website for £12.99.)</p>
<p>The <em>Sun</em> article, which was sent my way by the illustrious wine-counterfeiting scholar/economist <a title="Gunter Schamel" href="http://www.unibz.it/en/economics/people/StaffDetails.html?personid=12015&amp;showtype=4" target="_blank">Günter Schamel</a> (whose work I’ve <a title="Gunter on ebay bottles" href="http://blindtaste.com/2009/06/25/are-empty-wine-bottles-on-ebay/" target="_blank">previously discussed</a> here), has the amusing title “You Plonkers” and an equally amusing photo of a nonplussed McGowan.</p>
<p>The most unusual thing about this story is that while has been much discussion of counterfeit wine in the high-end rare and fine wine market—<a title="Ben Wallace" href="http://www.benjaminwallace.net/" target="_blank">Jefferson bottles</a> and <a title="Steinberger on fake wine" href="http://www.slate.com/id/2173361" target="_blank">first-growth Bordeaux</a> and such—there hasn’t been nearly as much talk about counterfeiting in the low-to-midrange wine market.</p>
<p>In that market, the trick might be a lot easier to get away with, for at least three reasons: first of all, <span id="more-716"></span>evidence from psychology and neuroscience indicates that the end consumers of inexpensive or midpriced wines aren’t probably paying as much attention to the wine’s sensory qualities as they would if it were expensive. Second of all, consumers’ quality expectations are clearly lower when they pay less, so they’re less likely to complain even if the wine doesn’t meet those expectations. Third, and perhaps most importantly, there’s little incentive for any individual to sue for fraud. Unlike, say, wine collector Bill Koch, who <a title="Bill Koch - New Yorker" href="http://www.newyorker.com/reporting/2007/09/03/070903fa_fact_keefe" target="_blank">alleges</a> millions of dollars in counterfeit damages related to his collection alone—and thus has incentive to sue on his own behalf—even the theoretical smattering of consumers that are more or less certain the wine is counterfeit probably can’t be bothered to raise a big stink over a potential refund (barring punitive damages) of £5 per bottle.</p>
<p>This last phenomenon is the same sort of collective action dilemma that mobile phone companies, credit-card companies, and the like have been trading on for years: they upcharge customers a few cents here and there—rounding the length of a dropped call up to the nearest minute, for instance, or playing with the spread on exchange rates on foreign transactions—but it’s below the radar screen of anyone but the most obsessively litigious or penny-pinching customer. It adds up to a lot of money for the company, but not enough is taken from any individual to incite a lawsuit. It’s thus a highly effective form of fraud.</p>
<p>When there are enough instances of such a scam, plaintiff firms sometimes come after the perpetrators with class-action suits, because contingency fees allow the firms to collect a percentage of the entire settlement even when the payout to any individual member of the class is small. The amalgamated damages then function as incentives for the plaintiff firms that look more like Koch’s and less like McGowan’s, even as many of the plaintiffs themselves probably don’t even go to the trouble to deposit their miniscule winnings (have you ever received one of those 40-cent settlement checks in the mail?).</p>
<p>It might seem, then, that the optimal opportunity for fraud is where (1) the damages to each individual are relatively low; (2) the number of instances is fewer than would make the case worth a plaintiff firm’s time; and yet (3) the business is large enough to make good money for the counterfeiter.</p>
<p>If low-end wine counterfeiting fits into this magical middle ground, then it’s here, perhaps, that sensationalist tabloids like the <em>Sun </em>can serve serve a critical role in the information marketplace and substitute for the plaintiff firm in solving this collective action problem. The tabloid punishes the supermarket chain with a public shaming while also rewarding the whistleblower with fifteen minutes of fame, which may not be worth millions, but whose cocktail-party value, plus perhaps a few pounds for the story, creates enough incentive for a consumer somewhere to tell all. If the story catches on, the extra ad impressions justify the tabloid’s effort. And all of this happens at little cost compared with that of preparing a fraud suit.</p>
<p>Unless, that is, you figure in the <em>Sun</em>’s<em> </em>liability risk if the facts turn out not to be true. This can be a serious matter in Britain, whose libel laws are so friendly to plaintiffs that the jurisdiction is said to attract so-called <a title="Britain libel risk - NY Times" href="http://www.nytimes.com/2009/05/25/business/media/25libel.html" target="_blank">“libel tourists”</a> from other countries. At least in Britain, then, this sort of middle-ground fraud might have to be particularly brazen and verifiable to be reported in a tabloid. (This one was probably reviewed by the <em>Sun</em>’s legal staff before publication and certified as such, in keeping with the age-old adage that the lawyers get paid no matter what.)</p>
<p>On its face, the Jadot fraud does look unusually brazen, from the apparently not-very-believable label to the fact that, according to McGowan, the wine tasted like Liebfraumilch—an off-dry German wine—when it was supposed to be white Burgundy. Even wine novices are pretty good at differentiating sugar levels, and passing off a sweet wine as dry—if that is indeed what happened here—would be an unusually challenging feat to attempt. But in the world of wine counterfeiting these days, maybe brazenness is no drawback, and the challenge is the game.</p>
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		<title>When are high wine prices justified?</title>
		<link>http://blindtaste.com/2010/02/13/when-are-high-wine-prices-justified/</link>
		<comments>http://blindtaste.com/2010/02/13/when-are-high-wine-prices-justified/#comments</comments>
		<pubDate>Sat, 13 Feb 2010 19:25:25 +0000</pubDate>
		<dc:creator>Robin Goldstein</dc:creator>
				<category><![CDATA[Behavioral economics]]></category>
		<category><![CDATA[Cognitive taste]]></category>
		<category><![CDATA[Fearless Critic]]></category>
		<category><![CDATA[The Wine Trials]]></category>
		<category><![CDATA[Wine]]></category>
		<category><![CDATA[Wine Spectator exposé]]></category>
		<category><![CDATA[burgundy]]></category>
		<category><![CDATA[dom perignon]]></category>
		<category><![CDATA[krug]]></category>
		<category><![CDATA[LVMH]]></category>
		<category><![CDATA[opus one]]></category>
		<category><![CDATA[petrus]]></category>
		<category><![CDATA[trockenbeerenauslese]]></category>
		<category><![CDATA[wine pricing]]></category>
		<category><![CDATA[wine spectator]]></category>
		<category><![CDATA[Wine Trials]]></category>

		<guid isPermaLink="false">http://blindtaste.com/?p=628</guid>
		<description><![CDATA[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. People have [...]]]></description>
			<content:encoded><![CDATA[<p>In wake of some of the latest chatter about <em><a title="The Wine Trials 2010" href="http://www.amazon.com/dp/1608160076?tag=fearlcriti-20&amp;camp=14573&amp;creative=327641&amp;linkCode=as1&amp;creativeASIN=1608160076&amp;adid=1JKS22JP6XERENE31N7K&amp;">The Wine Trials 2010</a> </em>(<a title="Joe Briand on The Wine Trials" href="http://www.neworleans.com/food/the-back-label-with-joe-briand/328750-back-label-book-review-the-wine-trials-2010.html">this one</a> from Joe Briand, wine buyer for New Orleans’ excellent Link Restaurant Group, e.g. Cochon, Herbsaint, with a response from <em>Wine Spectator </em>executive editor Thomas Matthews), I thought it was time for a quick clarification of first principles here.</p>
<p><img class="alignleft size-medium wp-image-629" title="Wine-Trials-2010-lr" src="http://blindtaste.com/wp-content/uploads/2010/02/Wine-Trials-2010-lr-187x300.jpg" alt="Wine-Trials-2010-lr" width="187" height="300" />People have sometimes (often, maybe) misinterpreted <em>The Wine Trials</em> (and <em>The Wine Trials 2010</em>) 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.</p>
<p>Rather, my basic points are these:</p>
<p>(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.</p>
<p>(2) <em>Many</em> (but certainly not <em>all</em>) 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 <a href="http://www.guardian.co.uk/lifeandstyle/2010/feb/13/cloudy-bay-wine-review">marketing Cloudy Bay as a luxury product</a>.  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.<span id="more-628"></span></p>
<p>(3) There are also wines that are overpriced for reasons other than marketing—reasons like an irrational premium Bordeaux bubble that’s being inflated by indiscriminate demand from rich, unsophisticated consumers in emerging markets like China and Russia. Even if Pétrus spends no money on marketing, $5,000 is an irrational price for a bottle, and this is a demand-side phenomenon.</p>
<p>(4) Then there are the producers who model themselves after Pétrus in an effort to capitalize on that same demand-side phenomenon. These producers make “high-end” wine (with the characteristics typically associated with the 95-and-higher-point wines in wine magazines, e.g. aging in new French oak, high alcohol, extreme concentration) and price it as such. Here, there aren’t necessarily the extreme marketing expenditures of LVMH; rather, there’s simply a price-signalling play: the hope that positioning the product at the top end of the market will speak for itself, and that consumers in search of a luxury good will buy into that notion. In this case, the consumer dollar isn’t paying for lots of advertising and marketing—it’s just sustaining unconscionably high profit margins for the producer.</p>
<p>What situations (2), (3), and (4) have in common is that the cost of production of each of these premium wines is virtually unrelated to the street price.</p>
<p>One might divide wine pricing theory into two rough schools of thought. There is the camp that believes wine should be priced from a supply-side/cost-plus perspective&#8211;you take the cost of production of the wine, you add reasonable costs and a modest profit for the producer, you factor in markups for distribution and retail, and you arrive at more or less what the wine should cost. The other camp believes that wine should be priced from a demand-side perspective&#8211;that a wine is worth whatever the market is willing to pay for it.</p>
<p>The reason I’m in the first camp, and not the second, is that I don’t subscribe to the neoclassical model of consumer rationality upon which the demand-side pricing theory is built, a counterfactual universe of stingily hypersensitive, quality-sniffing consumers. My sense is that, especially when it comes to hazy markets like wine, real human beings—within certain constraints—generally anchor themselves to market prices that are imposed upon them, and generally pay for things what they’re told those things are worth.</p>
<p>One attempt to justify superpremium wines with modest costs of production is an opportunity-cost-of-land argument—that wine in the Champagne appellation is so expensive that the opportunity cost of that land can justify higher prices. I’m unsympathetic to that argument, because real estate prices track market wine prices, so the price of land is not an independent factor.</p>
<p>So when <em>are </em>premium prices justified in my camp?</p>
<p>When the cost of production is high. The fact that Matthews and Briand <a title="Joe Briand" href="http://www.neworleans.com/food/the-back-label-with-joe-briand/328750-back-label-book-review-the-wine-trials-2010.html">mention</a> 1er Cru Burgundy and German whites as examples of expensive wines worth the money suggests that they might be in my camp too, because these are particular examples of wine regions in which grapes are often harvested from small plots with very low yields. In the case of German TBA, for instance, the harvesting is often done on steeply terraced slopes that are extremely difficult to work. Ice wines and botrytized wines—the priciest of German whites—are indisputably more difficult and expensive to produce than almost any other type of wine.</p>
<p>In short, while spending $50 or $75 or even $100 on a good Sauternes, TBA, or top red Burgundy might not always make economic sense for the buyer—particularly if it’s a buyer without much experience in wine—it’s at least justifiable from a supply-side pricing perspective. The $150 you’ll pay for a bottle of Opus One or Krug, meanwhile—never mind the $5,000 you’ll pay for a bottle of 2005 Pétrus—has little to do with the cost of production.</p>
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		<title>“Parker’s Wine Bargains” lists same exact wine twice, with totally different reviews</title>
		<link>http://blindtaste.com/2009/12/12/parkers-wine-bargains-lists-same-exact-wine-twice-with-totally-different-reviews/</link>
		<comments>http://blindtaste.com/2009/12/12/parkers-wine-bargains-lists-same-exact-wine-twice-with-totally-different-reviews/#comments</comments>
		<pubDate>Sat, 12 Dec 2009 08:20:00 +0000</pubDate>
		<dc:creator>Robin Goldstein</dc:creator>
				<category><![CDATA[Cognitive taste]]></category>
		<category><![CDATA[Wine]]></category>
		<category><![CDATA[casa lapostolle]]></category>
		<category><![CDATA[jay miller]]></category>
		<category><![CDATA[parker's wine bargains]]></category>
		<category><![CDATA[robert parker]]></category>
		<category><![CDATA[wine reviews]]></category>

		<guid isPermaLink="false">http://blindtaste.com/?p=602</guid>
		<description><![CDATA[In 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 [...]]]></description>
			<content:encoded><![CDATA[<p><img class="alignleft size-medium wp-image-603" title="parker wine bargains" src="http://blindtaste.com/wp-content/uploads/2009/12/parker-wine-bargains-152x300.jpg" alt="parker wine bargains" width="110" height="216" />In the course of reading Robert M. Parker, Jr.’s new <em>Parker’s Wine Bargains: The World’s Best Wine Values Under $25</em>, 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 <em>Wine Advocate </em>critic Jay Miller (who was recently <a href="http://online.wsj.com/article/SB124330183074253149.html#articleTabs%3Darticle">criticized</a> in the <em>Wall Street Journal</em> for <a href="http://blindtaste.com/2009/06/06/what-the-faa-and-robert-parker%E2%80%99s-wine-advocate-have-in-common/">accepting a lavish junket</a> in Argentina, which was first <a href="http://www.drvino.com/2009/04/16/changes-at-the-wine-advocate-correspondence-with-parker-and-miller/">exposed</a> by Dr. Vino).</p>
<p>And in the index, there are two successive entries for the winery: “Casa Lapostolle (Argentina), 14; Casa Lapostolle (Chile), 84.”</p>
<p>I figured this was just an editing/database mistake. It happens.</p>
<p>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:</p>
<p>(From Argentina chapter) “<strong>Casa Lapostolle Merlot Cuvée Alexandre Apalta Vineyard.</strong> 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.”</p>
<p>(From Chile chapter) “<strong>Casa Lapostolle Merlot Apalta Vineyard Cuvée Alexandre. </strong>The Merlot Apalta Vineyard Cuvée Alexandra [<em>sic</em>] 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.”</p>
<p>Blueberry, vanilla, and clove have been replaced by cedar, spice box, and black cherry. Is there a wine-adjective dartboard in the house?</p>
<p>Moving on to the second double&#8230;</p>
<p>(From Argentina chapter) “<strong>Casa Lapostolle Cabernet Sauvignon Cuvée Alexandre Apalta Vineyard. </strong>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.”</p>
<p>(From Chile chapter) “<strong>Casa Lapostolle Cabernet Sauvignon Apalta Vineyard Cuvée Alexandre. </strong>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.”</p>
<p>At least the black currants travel well.</p>
<p>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.</p>
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		<slash:comments>6</slash:comments>
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		<title>New study suggests that Wine Spectator advertisers get higher ratings</title>
		<link>http://blindtaste.com/2009/12/10/new-study-suggests-that-wine-spectator-advertisers-get-higher-ratings/</link>
		<comments>http://blindtaste.com/2009/12/10/new-study-suggests-that-wine-spectator-advertisers-get-higher-ratings/#comments</comments>
		<pubDate>Thu, 10 Dec 2009 20:03:14 +0000</pubDate>
		<dc:creator>Robin Goldstein</dc:creator>
				<category><![CDATA[Behavioral economics]]></category>
		<category><![CDATA[Cognitive taste]]></category>
		<category><![CDATA[Wine]]></category>
		<category><![CDATA[Wine Spectator exposé]]></category>
		<category><![CDATA[advertising]]></category>
		<category><![CDATA[bias]]></category>
		<category><![CDATA[corruption]]></category>
		<category><![CDATA[jonathan reuter]]></category>
		<category><![CDATA[journal of wine economics]]></category>
		<category><![CDATA[wine ratings]]></category>
		<category><![CDATA[wine spectator]]></category>

		<guid isPermaLink="false">http://blindtaste.com/?p=590</guid>
		<description><![CDATA[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 [...]]]></description>
			<content:encoded><![CDATA[<p>The lead paper in the new issue of the <em>Journal of Wine Economics </em>is a <a href="http://wine-economics.org/journal/content/Volume4/number2/Full%20Texts/1_wine%20economics_vol%204_2_Reuter.pdf">study by Jonathan Reuter</a> arguing that <em>Wine Spectator</em> wine ratings for advertisers were about one point higher than ratings for non-advertisers, when controlled against ratings from <em>Wine Advocate</em>. This is in spite of the magazine’s <a href="http://www.winespectator.com/display/show/id/Ethics-statement">stated policy</a> of tasting wines completely blind.</p>
<p>This from the abstract:</p>
<p>“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&#8230;Although the average <em>Wine Spectator</em> ratings earned by advertisers and non-advertisers are similar, I find that advertisers earn just less than one point higher <em>Wine Spectator</em> ratings than non-advertisers when I use Wine Advocate ratings to adjust for differences in quality.”</p>
<p>These are wine ratings, not the restaurant Awards of Excellence, which I’ve <a href="http://blindtaste.com/2008/08/15/what-does-it-take-to-get-a-wine-spectator-award-of-excellence/">written about</a> in the past<span id="more-590"></span>; the applicants for those awards are advertisers by definition (having submitted a $250 fee to be considered).</p>
<p>Karl Storchmann has also posted an interesting <a href="http://wine-econ.org/2009/12/09/are-wine-spectator-points-biased-towards-wineries-that-advertise-with-them.aspx">blog entry</a> about Reuter’s paper on the <a href="http://wine-econ.org/">AAWE website</a>.</p>
<p>Reuter later retreats to a statement that he “finds little consistent evidence of bias&#8230;at worst, the tests for biased ratings suggest that <em>Wine Spectator</em> rates wines from advertisers almost one point higher than wines from non-advertisers. However, selective retastings can explain at most half of this bias and then only within the set of U.S. wines rated by both <em>Wine Spectator</em> and <em>Wine Advocate</em>. Given <em>Wine Spectator</em>’s claim that it rates wines blind, the remaining difference in ratings may simply reflect consistent differences in how the two publications rate quality, which leads to predictable differences in advertising. This interpretation is consistent with the fact that tests for biased awards provide no additional evidence of bias. Therefore, despite the fact that Wine Spectator is dependent on advertising revenue, the long-run value of producing credible reviews appears to minimize bias.”</p>
<p>I think this conclusion is softer than it need be. Even if selective retastings explain only half of the one-point bias, that’s still pretty damning; it means that if you advertise in <em>Wine Spectator</em>, you might well get the benefit of a selective retasting that gets you, on average, an additional half-point. Translation: advertising influences ratings.</p>
<p>With respect to the other half-point, if there are indeed “consistent differences in how the two publications rate quality, which leads to predictable differences in advertising,” then you should try leafing through a copy of <em>Wine Spectator </em>and seeing if you’d trust critics who favor the types of wines that tend to advertise in the magazine. I think the roster of advertisers speaks for itself.</p>
<p><img class="alignleft size-thumbnail wp-image-598" title="Wine Spectator awards logo" src="http://blindtaste.com/wp-content/uploads/2009/12/Picture-391-150x150.png" alt="Wine Spectator awards logo" width="150" height="150" /></p>
<p>The more important issue, perhaps—especially if you’re a small wine producer—is how difficult it is to get magazines like <em>Wine Spectator </em>to even review your wines at all. And this is where, anecdotally, bias might play an even larger role. “Unsolicited samples,” states the <em>Wine Spectator </em>website, “may not be tasted.” Advertise in the magazine, and that problem seems to go away.</p>
<p>And then there’s the matter of the selection of a wine (Columbia Crest Cabernet Sauvignon Reserve) from a <em>Wine Spectator </em>advertiser (Chateau Ste. Michelle) as this year’s <em>Wine Spectator </em>wine of the year.</p>
<p>Although proving bias in every such case is a complicated, difficult point, the obvious conclusion of all such research is the simplest:</p>
<p>We should be skeptical of criticism whose publication is financially supported by the producers of the products being criticized.</p>
<p>Wine critics should not accept advertisements from wineries.</p>
<p>Period.</p>
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		<title>Didn’t brine your Thanksgiving turkey? Don’t worry (by Justin Yu)</title>
		<link>http://blindtaste.com/2009/11/25/didnt-brine-your-thanksgiving-turkey-dont-worry/</link>
		<comments>http://blindtaste.com/2009/11/25/didnt-brine-your-thanksgiving-turkey-dont-worry/#comments</comments>
		<pubDate>Wed, 25 Nov 2009 11:01:32 +0000</pubDate>
		<dc:creator>Justin Yu</dc:creator>
				<category><![CDATA[Brine]]></category>
		<category><![CDATA[Brining turkey]]></category>
		<category><![CDATA[Cognitive taste]]></category>
		<category><![CDATA[Food]]></category>
		<category><![CDATA[Thanksgiving]]></category>
		<category><![CDATA[Turkey]]></category>
		<category><![CDATA[Wine]]></category>

		<guid isPermaLink="false">http://blindtaste.com/?p=571</guid>
		<description><![CDATA[“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 [...]]]></description>
			<content:encoded><![CDATA[<p>“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.</p>
<p>As she should.</p>
<p>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) <a title="Alton Brown" href="http://blog.zap2it.com/frominsidethebox/2009/11/alton-browns-good-eats-best-ever-turkey-brine-recipe.html">preaches</a> it. Sara Moulton <a title="Sara Moulton" href="http://www.abcnews.go.com/GMA/recipe?id=9135596">swears by it</a>. 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.</p>
<p>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 <a title="Alton Brown 2" href="http://www.seriouseats.com/2009/11/the-food-lab-turkey-brining-basics.html">here</a>.) 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).</p>
<p>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<span id="more-571"></span>, to go back another day; and (3) cruelty to animals (it’s considered really bad form to brine a turkey while it’s still alive).</p>
<p>If you haven’t brined, don’t worry about it. Forget brining. Get rid of your brining guilt. Just don’t overcook the thing. The trends come and go, but in reality, your turkey is dry because it’s very lean meat, and more often than not, you, your mom, and your great aunt cook it too long, perhaps because you follow some misguided FDA directive, a recipe from cookbook from too long ago, or (wince) the directions on the turkey wrapper or supermarket pamphlet about minutes per pound.</p>
<p>So instead of buying another gadget that will inevitably sit in your kitchen drawer for the rest of eternity, I suggest buying a temperature-alarm thermometer that will let you know to pull the turkey at around 160 degrees Fahrenheit. Unlike whatever trend may hit next year, this kitchen tool will be your friend year after year. Or you could go the old-school route and separate the legs from the rest of the body and roast them separately, as the breast cooks a bit faster. Either way, you don’t need to be scouring the web for the next big answer when the answer is pretty simple—plus it makes gravy all the more viable.</p>
<p>Let’s just hope, for humor’s sake, that home sous-vide-ing is next year’s trend.</p>
<p>Housewives with immersion circulators fretting over sealing numbers?</p>
<p>Oh hell yes.</p>
<p>[Guest post by chef Justin Yu]</p>
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		<title>Do taste and smell adjectives signal value, or do they create it?</title>
		<link>http://blindtaste.com/2009/07/02/do-taste-and-smell-adjectives-signal-valu/</link>
		<comments>http://blindtaste.com/2009/07/02/do-taste-and-smell-adjectives-signal-valu/#comments</comments>
		<pubDate>Thu, 02 Jul 2009 08:57:30 +0000</pubDate>
		<dc:creator>Robin Goldstein</dc:creator>
				<category><![CDATA[Behavioral economics]]></category>
		<category><![CDATA[Cognitive taste]]></category>
		<category><![CDATA[Fearless Critic]]></category>
		<category><![CDATA[Food]]></category>
		<category><![CDATA[The Wine Trials]]></category>
		<category><![CDATA[Wine]]></category>
		<category><![CDATA[adjectives]]></category>
		<category><![CDATA[american association of wine economists]]></category>
		<category><![CDATA[bullshit]]></category>
		<category><![CDATA[carlos ramirez]]></category>
		<category><![CDATA[coco krumme]]></category>
		<category><![CDATA[pedro ximenez]]></category>
		<category><![CDATA[richard quandt]]></category>
		<category><![CDATA[smell]]></category>
		<category><![CDATA[taste]]></category>

		<guid isPermaLink="false">http://blindtaste.com/?p=438</guid>
		<description><![CDATA[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. With [...]]]></description>
			<content:encoded><![CDATA[<p>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.</p>
<div id="attachment_439" class="wp-caption alignright" style="width: 159px"><img class="size-full wp-image-439" title="petrus" src="http://blindtaste.com/wp-content/uploads/2009/07/petrus.jpg" alt="Worth a thousand words?" width="149" height="200" /><p class="wp-caption-text">Worth a thousand words?</p></div>
<p>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).</p>
<p>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.</p>
<p>But how carefully are we really choosing these adjectives and analogies?<span id="more-438"></span> How often do they correspond to real chemical commonalities? Does that matter? Do the analogies more frequently serve a more poetic (or at least suggestive) purpose, forging new neural assemblies that connect relatively arbitrary taste and smell memories with each other—connections that, reinforced over time, turn into sensory reality?</p>
<p>Two papers at last month’s meeting of the American Association of Wine Economists in Reims (this is my second of two articles about the conference) investigated this question with respect to the wine industry, which is, if not a microcosm of all consumer-products industries, at least an increasingly apt caricature of them. While creative adjectivism has long characterized in the wine world, the practice in other taste industries—chocolaty coffee, metallic fish, grassy honey, peaty whiskey—is now ascendant.</p>
<p>The canonical work in the wine-adjective field is Princeton economist Richard Quandt’s <a title="On Wine Bullshit" href="http://www.wine-economics.org/journal/content/Volume2/number2/Full%20Texts/richardquandt.pdf" target="_blank">“On Wine Bullshit”</a> (a riff on his fellow Princetonian Harry Frankfurt’s “On Bullshit”). Writes Quandt:</p>
<p style="padding-left: 30px;">Two things have to be true before wine ratings can become useful for the average wine drinker. Since there are many wine writers, and there is a substantial overlap in the wines they write about (particularly Bordeaux wines), it is important that there be substantial agreement among them. And secondly, what they write must actually convey information; that is to say, it must be free of bullshit. Regrettably, wine evaluations fail on both counts.</p>
<p>At the AAWE meeting, Coco Krumme of M.I.T., who is also a <a title="Fearless Critic" href="http://www.fearlesscritic.com" target="_blank">Fearless Critic</a> food writer, studied data from critical descriptions of more than 3,500 wines from recent vintage years, ranging from $4.99 to $137.99 in retail price, and employed a Bayesian filter to “find those words that best predict the price category of a bottle” (abstract <a title="Krumme abstract" href="http://www.wine-economics.org/meetings/Reims2009/programinfo/Abstracts/Krumme.pdf" target="_blank">here</a>). She found that “about 65% of commonly occurring words are non-overlapping.” Words like “old,” “elegant,” “intense,” “supple,” “velvety,” “smoky,” “tobacco,” and “chocolate” predict expensive wines; “pleasing,” “refreshing,” “value,” “enjoy,” “bright,” “light,” “fresh, “tropical,” “pink,” “fruity,” “good,” “clean,” “tasty,” and “juicy” predict cheap wines. As for suggested pairings, “steak” and “shellfish” predict expensive wines; “chicken” predicts cheap wines.</p>
<p>Perhaps most amusingly, Krumme reports that “words with the same meaning are preferentially used for expensive over cheap wines: for example, ‘vintage’ is six times more likely to describe an expensive wine; ‘harvest’ is used for cheap wines.”</p>
<p>Economist Carlos Ramirez of George Mason University, meanwhile, ran a regression (abstract <a title="Carlos Ramirez" href="http://www.wine-economics.org/meetings/Reims2009/programinfo/Abstracts/Ramirez.doc" target="_blank">here</a>) on a data set of 800 <em>Wine Spectator</em> descriptions of Napa Valley Cabernet Sauvignon wines from for wines from the 2004, 2005, and 2006 vintages, and found a length-of-review effect—that is, “longer wine descriptions are associated with higher prices—a 10 percent increase in the length of a wine description (adding about 23 characters) is associated with a statistically significant increase of 4 to 13 percent to the price of the bottle.” Like Krumme, Ramirez also found some particular wine descriptors (about 20 of the 208 he looked at) that, controlling for other variables, signal higher wine prices.</p>
<p>If you’re familiar with wine ratings and reviews, neither of these results might surprise you. But the  interesting, unanswered question is: which way does the causality go?</p>
<p>Here are three potential theories:</p>
<p>(1) Expensive wines are generally fairly similar to each other, and their particular properties lead critics to refer more frequently to certain flavors (e.g. chocolate) and to write longer reviews of these wines. That is, there’s just a specific expensiveness to expensive wines that explains these differences. (Quandt would likely doubt this, and the <a title="Do More Expensive Wines Taste Better?" href="http://blindtaste.com/2008/06/01/do-more-expensive-wines-taste-bette/" target="_blank">empirical evidence</a>, as described in <a title="The Wine Trials" href="http://www.thewinetrials.com" target="_blank"><em>The Wine Trials</em></a>, would be against it, too.)</p>
<p>(2) Tasting is not done blind, and thus critics are influenced to write more and refer to certain flavors when they taste expensive wines.</p>
<p>(3) Tasting is done blind, but the sensory reviews of expensive wines are edited after the fact by editors who know what the wines are.</p>
<p>Regardless of which of these theories is correct, what’s highly likely is that the descriptors are self-fulfilling—reading an expensive wine description primes the drinker to have a more typically expensive wine experience. That is, the adjectives and analogies we read in wine reviews fuse with our experience of drinking the wine in such a complete way that the liquid’s intrinsic and extrinsic properties become inseperable.</p>
<p>Is this why it’s so difficult to undermine the conventional wisdom that very expensive wine is worth the money?</p>
<p>Maybe we just synthesize whatever we seek, creating value as we go: search for chocolate, and it will magically appear.</p>
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		<title>Are empty wine bottles on eBay being used for counterfeiting?</title>
		<link>http://blindtaste.com/2009/06/25/are-empty-wine-bottles-on-ebay/</link>
		<comments>http://blindtaste.com/2009/06/25/are-empty-wine-bottles-on-ebay/#comments</comments>
		<pubDate>Thu, 25 Jun 2009 15:52:54 +0000</pubDate>
		<dc:creator>Robin Goldstein</dc:creator>
				<category><![CDATA[Behavioral economics]]></category>
		<category><![CDATA[Cognitive taste]]></category>
		<category><![CDATA[Fearless Critic]]></category>
		<category><![CDATA[The Wine Trials]]></category>
		<category><![CDATA[Wine]]></category>
		<category><![CDATA[counterfeit wine]]></category>
		<category><![CDATA[ebay]]></category>
		<category><![CDATA[gunter schamel]]></category>

		<guid isPermaLink="false">http://blindtaste.com/?p=432</guid>
		<description><![CDATA[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. 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 [...]]]></description>
			<content:encoded><![CDATA[<p><a title="Forensic Economics: Some Evidence for New Wine to be sold in Old Bottles" href="http://www.wine-economics.org/meetings/Reims2009/programinfo/Abstracts/Schamel.pdf" target="_blank">One of the most thought-provoking papers</a> at this year’s meeting of the American Association of Wine Economics was presented by <a title="Günter Schamel" href="http://www.unibz.it/en/economics/people/StaffDetails.html?personid=12015&amp;showtype=4" target="_blank">Günter Schamel</a>, a professor at the <a title="Free University of Bolzano" href="http://unibz.it" target="_blank">Free University of Bolzano</a>.</p>
<div id="attachment_433" class="wp-caption alignright" style="width: 310px"><img class="size-medium wp-image-433" title="picture-6" src="http://blindtaste.com/wp-content/uploads/2009/06/picture-6-300x238.png" alt="picture-6" width="300" height="238" /><p class="wp-caption-text">Not empty for long?</p></div>
<p>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.”</p>
<p>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.”</p>
<p>Certainly, notwithstanding a recent <a title="Petrus is a fake - Telegraph" href="http://www.telegraph.co.uk/news/uknews/1578111/18000-Petrus-is-a-fake-says-customer.html" target="_blank">incident</a> in which a customer at a London restaurant sent back a £18,000 magnum<span id="more-432"></span> of 1961 Château Pétrus claiming that it was counterfeit, <a title="Do More Expensive Wines Taste Better?" href="http://blindtaste.com/2008/06/01/do-more-expensive-wines-taste-bette/" target="_blank">our wine experiments</a> and <a title="Brochet Chemical Object Representation" href="http://www.enophilia.net/writable/uploadfile/chimica%20della%20degustazione.pdf" target="_blank">others’</a> predict that few consumers—even wine experts—would be able to identify a plausible fake of ’82 Lafite.</p>
<p>In my mind, the strongest piece of evidence in favor of Schamel’s theory is that his model shows no price effect for the most intuitively collectible of all wine bottles—<a title="USA Today on Mouton-Rothschild artist labels" href="http://www.usatoday.com/travel/destinations/2009-02-23-rothschild-wine-art_N.htm" target="_blank">Château Mouton-Rothschild bottles with artist labels</a>. These are designed by a different prominent artist for each vintage. One might assume that these bottles, when empty—since they’re limited-edition works of art—would have higher value than others if they were being collected for legitimate purposes.</p>
<p>On the other hand, if collecting empty wine bottles is less like art collecting and more like straightforward conspicuous-consumption plumage—that is, if, say, a collector’s display of a row of empty bottles in his or her dining room or wine cellar is functioning as a mere social display of the total value of all the expensive wines that he or she has consumed—then he or she would have an interest in buying the most expensive possible bottles, which would explain the model’s results without the need for counterfeiting. It would be interesting to survey empty-bottle collectors to see, at least anecdotally, what qualities they claim to value most.</p>
<p>It was also brought up in the Q&amp;A session that, to complete his or her work, a counterfeiter would also need an appropriate cork. As few corks are available on eBay, Schamel has not yet investigated a potential cork effect. However—and this is speculation—I would imagine there to still be a robust market amongst counterfeiters for empty bottles without corks, primarily because I’d assume that there is also a separate black market for counterfeit corks (or real corks without bottles) that could complete the sets, so to speak.</p>
<p>I’d also assume that one of the main categories of counterfeit-wine buyers would be conniving restaurateurs in regions where there’s a lot of demand for prestige bottles but relatively little wine tradition or wine education—China and Russia come to mind. I’ve seen a table full of businessmen in Hong Kong order a bottle of 1970 Haut-Brion and mix it with Coca-Cola. Restaurant customers in such situations would be easily duped—and they also might be less vigilant about looking at the cork. Such restaurateurs might take steps, for instance, to avoid presentation of the cork when the bottle is opened.</p>
<p>I’ll leave it at this: if I were going to go into the wine counterfeiting business, eBay would certainly be one place I’d start…</p>
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		<title>In Sweden, all wine stores are organized by price</title>
		<link>http://blindtaste.com/2009/06/17/in-sweden-all-wine-stores-are-organized-by-price/</link>
		<comments>http://blindtaste.com/2009/06/17/in-sweden-all-wine-stores-are-organized-by-price/#comments</comments>
		<pubDate>Wed, 17 Jun 2009 18:03:44 +0000</pubDate>
		<dc:creator>Robin Goldstein</dc:creator>
				<category><![CDATA[Behavioral economics]]></category>
		<category><![CDATA[Cognitive taste]]></category>
		<category><![CDATA[Fearless Critic]]></category>
		<category><![CDATA[Regulation]]></category>
		<category><![CDATA[Wine]]></category>
		<category><![CDATA[monopoly]]></category>
		<category><![CDATA[pricing]]></category>
		<category><![CDATA[Sweden]]></category>
		<category><![CDATA[Systembolaget]]></category>

		<guid isPermaLink="false">http://blindtaste.com/?p=420</guid>
		<description><![CDATA[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 [...]]]></description>
			<content:encoded><![CDATA[<p>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 <a title="System Bolaget" href="http://www.systembolaget.se/Applikationer/Knappar/InEnglish/" target="_blank">Systembolaget</a>, the state-controlled retail monopoly.</p>
<p>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.</p>
<p><img class="alignleft size-thumbnail wp-image-422" title="sweden-wine-1" src="http://blindtaste.com/wp-content/uploads/2009/06/sweden-wine-1-150x150.jpg" alt="sweden-wine-1" width="150" height="150" /><img class="size-thumbnail wp-image-423 alignleft" title="sweden-wine-21" src="http://blindtaste.com/wp-content/uploads/2009/06/sweden-wine-21-150x150.jpg" alt="sweden-wine-21" width="150" height="150" /></p>
<p><img class="alignleft size-thumbnail wp-image-424" title="sweden-wine-3" src="http://blindtaste.com/wp-content/uploads/2009/06/sweden-wine-3-150x150.jpg" alt="sweden-wine-3" width="150" height="150" /></p>
<p>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.</p>
<p>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.</p>
<p>Why don’t non-monopoly stores organize this way?</p>
<p>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.</p>
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		<title>What the F.A.A. and Robert Parker’s Wine Advocate have in common</title>
		<link>http://blindtaste.com/2009/06/06/what-the-faa-and-robert-parker%e2%80%99s-wine-advocate-have-in-common/</link>
		<comments>http://blindtaste.com/2009/06/06/what-the-faa-and-robert-parker%e2%80%99s-wine-advocate-have-in-common/#comments</comments>
		<pubDate>Sat, 06 Jun 2009 14:30:26 +0000</pubDate>
		<dc:creator>Robin Goldstein</dc:creator>
				<category><![CDATA[Aviation]]></category>
		<category><![CDATA[Behavioral economics]]></category>
		<category><![CDATA[Fearless Critic]]></category>
		<category><![CDATA[Law]]></category>
		<category><![CDATA[Politics]]></category>
		<category><![CDATA[Regulation]]></category>
		<category><![CDATA[The Wine Trials]]></category>
		<category><![CDATA[Wine]]></category>
		<category><![CDATA[Wine Spectator exposé]]></category>
		<category><![CDATA[buffalo crash]]></category>
		<category><![CDATA[colgan air]]></category>
		<category><![CDATA[corruption]]></category>
		<category><![CDATA[critics]]></category>
		<category><![CDATA[ethics]]></category>
		<category><![CDATA[faa]]></category>
		<category><![CDATA[federal aviation administration]]></category>
		<category><![CDATA[information intermediaries]]></category>
		<category><![CDATA[jay miller]]></category>
		<category><![CDATA[robert parker]]></category>
		<category><![CDATA[wine advocate]]></category>
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		<description><![CDATA[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 [...]]]></description>
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<p class="MsoNormal">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 <em>de facto</em> justice system.</p>
<p class="MsoNormal">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.</p>
<p class="MsoNormal">Two bits of recent news bring about two otherwise disparate intermediaries, both preeminent in their niches—Robert Parker’s <em><a title="Wine Advocate" href="http://www.erobertparker.com" target="_blank">Wine Advocate</a></em>, the publication whose critical appraisals are one of the central determinants of a wine’s success or failure on the marketplace, and the <a title="FAA" href="http://www.faa.gov" target="_blank">Federal Aviation Administration</a>, the agency whose critical appraisals are the primary safety check against America’s airlines—systematically abusing that authority.</p>
<div id="attachment_415" class="wp-caption alignleft" style="width: 212px"><img class="size-full wp-image-415   " title="jmill" src="http://blindtaste.com/wp-content/uploads/2009/06/jmill.jpg" alt="jmill" width="202" height="182" /><p class="wp-caption-text">Jay Miller: Disfrutando?</p></div>
<p class="MsoNormal">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, <a title="Dr. Vino" href="http://www.drvino.com" target="_blank">Tyler Colman, who goes by “Dr. Vino”</a>—Miller’s series of all-expenses-paid vacation/junkets, financed by wine producers, have finally been reported by the mainstream media in a recent <em><a title="WSJ on Jay Miller" href="http://www.drvino.com/2009/05/26/robert-parker-wine-advocate-ethics-wall-street-journal/" target="_blank">Wall Street Journa</a></em><a title="WSJ on Jay Miller" href="http://www.drvino.com/2009/05/26/robert-parker-wine-advocate-ethics-wall-street-journal/" target="_blank"><em>l</em> article</a>.</p>
<p class="MsoNormal">Some of rumors about Miller’s behavior in Argentina go quite a bit further in scandalousness<span id="more-413"></span> than the mere acceptance of free hotels, food, and drinks. But what’s crystal clear, as reported in the <em>Journal </em>and, previously, by Colman—and admitted by Parker—is that the writers of Parker’s <em>Wine Advocate </em>accept lavish free meals from, and are flown around on weeks-long junkets by, the same wine producers whose wines they’re supposed to be critically reviewing—in Argentina and elsewhere.</p>
<p class="MsoNormal"><span>Parker doesn’t just present himself as a wine writer, and he doesn’t just present <em>Wine Advocate</em> as a wine magazine. No, these are</span> “consumer advocates”: in Parker’s new <a title="Parker's Statement of Ethical Standards" href="http://www.erobertparker.com/info/wstandards.asp" target="_blank">statement of ethical standards</a>, which was published on eRobertParker.com after the scandal broke, he writes: “<span>I…remain today…significantly influenced by the independent philosophy of consumer advocate Ralph Nader.” Mr. Miller’s </span><em>only job</em> is to independently criticize wines and assign numerical ratings to those wines in service to, and he is engaged in the systematic, ongoing practice of being taken on vacation by those wines’ producers.</p>
<p class="MsoNormal"><a title="Jay Miller's apology" href="http://dat.erobertparker.com/bboard/showthread.php?t=203403&amp;highlight=wall+street+journal" target="_blank">Miller has apologized</a>, and Parker <a title="Robert Parker's WSJ response" href="http://dat.erobertparker.com/bboard/showthread.php?t=203068&amp;highlight=wsj" target="_blank">has tried to explain himself</a>, but Parker’s actions (or lack thereof) speak more loudly than his <a title="Parker's rambling statement" href="http://dat.erobertparker.com/bboard/showthread.php?t=200002&amp;page=1&amp;pp=40" target="_blank">rambling statements on bulletin boards</a>. If it’s even true that Parker didn’t know about Miller’s junkets beforehand (which is extremely unlikely), the fact that Parker didn’t fire Miller when he found out is a loud, clear statement that what he did really wasn’t that bad. In fact, it’s endorsed even in the new <span>code of ethical standards. Incredibly, rather than rejecting Miller’s trips, that statement specifically <a title="Statement of ethics" href="http://www.erobertparker.com/info/wstandards.asp" target="_blank">renders them acceptable</a>:</span></p>
<p class="MsoNormal" style="padding-left: 30px;"><span>I…expect [the <em>Wine Advocate </em>critics], as I have done for 30+ years, not to solicit or accept free hotel accommodations or hospitality not directly related to their professional endeavors.</span></p>
<p class="MsoNormal"><span>Not directly related to their professional endeavors? <em>Of course </em>a free tasting junket would be related to their professional endeavors. That’s exactly the problem!</span></p>
<p class="MsoNormal"><span>Parker finishes his exhausting essay with a poetic flourish: “Wine is, in the final analysis, a beverage of pleasure, and intelligent wine criticism should be a blend of both hedonistic and analytical schools of thought—to the exclusion of neither.” At least the record shows that he’s got the hedonistic part down, anyway.</span></p>
<p class="MsoNormal"><img class="alignright size-full wp-image-416" title="faa" src="http://blindtaste.com/wp-content/uploads/2009/06/faa.jpg" alt="faa" width="130" height="130" />Meanwhile, the <a title="NY Times on Buffalo crash" href="http://www.nytimes.com/2009/06/04/nyregion/04colgan.html" target="_blank">New York Times reports</a> that over at the F.A.A., the airlines being rigorously scrutinized for adherence to strict safety standards—again, the organization’s primary responsibility—are referred to within the agency as “customers”:<span> </span></p>
<p class="MsoNormal" style="padding-left: 30px;"><span>In 2008, two F.A.A. inspectors assigned to Southwest Airlines testified before Congress that their managers had let Southwest fly its Boeing 737s without inspections for cracks that the safety agency required. Office managers referred to the airline as the regulatory agency’s “customer.” Top F.A.A. officials eventually conceded that the inspectors were right and the middle managers were wrong.</span></p>
<p class="MsoNormal">The Times’ investigative report tells the chilling story of an inspector named <span>Christopher Monteleon, who voiced serious concerns about the incompetence and low safety standards of the pilots of <a title="Colgan Air" href="http://www.colganair.com" target="_blank">Colgan Air</a> a year before one of the airline’s <a href="http://www.bombardier.com">Bombardier</a> Dash 8-400 turboprop planes</span> <a title="Pilots chatting" href="http://www.nytimes.com/2009/05/13/nyregion/13crash.html" target="_blank">crashed in Buffalo, apparently due to pilot error</a>. Apparently, Monteleon’s warnings were not just ignored but actually <em>punished</em><span> by his superiors:</span></p>
<p class="MsoNormal" style="padding-left: 30px;"><span>Three times, he said, the pilots flew the airplane faster than the manufacturer’s specifications allowed, but they initially refused to report this and have the plane inspected for damage…[T]hey tried three approaches to the airport in Charleston, W. Va., and “botched” all of them, failing to get the plane at an appropriate altitude, on the right path and at the right speed for landing. “They got confused,” Mr. Monteleon said…But when he reported problems to his </span><a href="http://topics.nytimes.com/top/reference/timestopics/organizations/f/federal_aviation_administration/index.html?inline=nyt-org"><span>F.A.A.</span></a><span> superiors, he was suspended from important portions of his job overseeing Colgan’s acquisition of the Dash 8 and given a desk job, he said…Colgan crews were flying fatigued, Mr. Monteleon said, and were not fully focused on the tasks in front of them, two factors apparently in play in the Buffalo crash. All 49 people on board the flight, which took off from Newark, were killed, along with one man on the ground. Mr. Monteleon said his supervisors were too “cozy” with Colgan, and eager to help it keep its schedule&#8230;In one memo retained by Mr. Monteleon, his manager indicates that he was reassigned because of his “conduct during a work-related duty” and because “the matter also required management to immediately respond to the operator’s scheduling needs.” The operator was Colgan.</span></p>
<p class="MsoNormal"><span>In aviation, as in wine, our intermediaries have failed in their duty to their <em>real </em>customers: the readers, the consumers, the citizens. And unlike what happens when ethics scandals directly involve politicians, neither Robert Parker nor the F.A.A. is likely to be voted out of power anytime soon.</span></p>
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