Monday, January 23. 2012Wine & India – A Growing Market For South African Wine Producers WineWine – The boom in the Indian economy hasn’t bypassed the sale of liquor, especially wine. What is more pleasing though, for a wine producing country like South Africa, is that Indians are changing their traditional drinking patterns. Young adults use to migrate from consuming hard liquor to wine in their thirties, but are now doing so from a much earlier age. As a result, the sale of wine has nearly doubled in most regions in 2010. Even more pleasing to wine producers is the fact that it has become popular culture to attend wine tastings and to drink wine in restaurants. This will usually have a long term benefit. Wine distributors have been quick to catch on. They are now importing wines from South Africa, Chile, Russia and Italy. They sponsor activities around wine such as wines samplers, menus paired with wines and even piccolos (small pints or half bottles). Restaurants are finding that an increasing number of their clients order expensive foreign wines. Demand covers the full spectrum of wines, from sparkling wines to desert wines. Corporates and hotels host regular wine tastings to get their clients and employees to taste good wines. They sponsor employees to attend wine courses to learn how to appreciate wine when interacting with business clients. A few wine facts about India • It has become the 10th largest growth country for wine (Vinexpo study, 2010) • Wine consumption has grown from 4m litres in 2008 to 14m litres in 2010. South African wine producers can take note of the growth of wine consumption in India and cultivate a new market for the very good wines they are known to produce. (Article in Hindustan Times, Edited by LiquorWise) Saturday, January 14. 2012Wine - What Does The Future Hold For The Worldwide Wine Industry?Wine - The global wine industry has changed dramatically over the last 3 to 4 decades. Initially being dominated by European countries(old world), the rest of the world(new world) have gradually increased their presence and competitiveness. All indications are that this trend will continue in the next decade as globalisation continues to make our world smaller.
Consolidation The advantages of consolidating buying power and marketing clout have and will lead to more mergers. The largest wine business in the world, Constellation, sells approximately 102 million cases per year, representing more of less 90 brands. Other well-known companies such as E& J Gallo and St Michelle exhibit similar patterns. However, it is clear that consolidation is happening across traditional product lines, meaning that tobacco companies are buying wine companies and such. Altria, the second largest tobacco company in the world, owns St Michelle.
Wine Farmers – Producing Grapes Only?
The tradition has always been that the wine farmer grows the grapes, makes the wine as well as marketing it. This has changed substantially. Initially, wine marketing companies took over the marketing side, which most wine farmers welcomed. However, recently businessmen have started to buy grapes and employ their own wine makers to produce wine. The advantages to these entrepeneurs are obvious. They can negotiate to buy the best grapes from different regions, thereby they are not tied to one region, which may have a bad year. Furthermore, they can select and employ the best wine makers without being stuck with one who has been with a wine farm for 20 years and will probably remain for another 20. One such wine entrepreneur buys grapes from 650 regions. Another employs 11 wine makers.
An example of the success which this has achieved, was a R20 Chardonnay which won a blind tasting competition against 350 other wines of which the average price was R300 a bottle. These wine businessmen are on the up. Wine Business Monthly reports that Castle Rock ranked is the 25th largest wine seller in the USA. It owns no vineyard and no winery, but more than 90 cellars.
What is even more interesting is that an increasing number of these wine entrepeneurs are buying and selling grape as well as wine. This has started at trend where grapes and wine may end up being traded as many other agricultural products – being sold before actually being harvested or made(which has been done, but on a small scale).
How does this affect you, the consumer?
Mostly in a positive way. Consumer will definitely have a larger variety to choose from in supermarkets. Private liquor stores (not part of a national chain) will become more resourceful and offer scarcer varieties, host more wine tastings and look after consumers in novel ways.
Which all means that wine will stay as interesting a topic as it has been, not to forget the actual reason for getting interested in the first place – enjoying it !
(Article by Elliott R. Morss, Ph.D., edited by LiquorWise)
Thursday, January 12. 2012Liquor (Wine) Vending Machine - A FirstLiquor Vending Machine - A supermarket has introduced the first wine vending machine in the US. All you have to do is swipe your driving licence, look into the CCTV camera and blow into the Breathalyser. A successful trial will probably result in the supermarket installing similar machines in more than 100 stores.
The wine vending machine is the result of strict laws prohibiting the sale of liquor by any business other than state-owned business. An exception relates to beer - the public can by a maximum of two six-packs per customer from private businesses – but not wine. The liquor vending machines are quite unique due to not charging the store owner as its generates revenue from advertisements being displayed on flat-screen monitors on the vending machine. The whole process takes around 20 seconds. The liquor board chairman said the wine vending machine gave 'an added level of convenience in today's busy society'. The machine distributor/manager said that the machines are aimed at the average customer and not the wine expert.
The president of a wine school descibed the machines as 'well-intentioned failures.
Liquor board members are clearly detached from reality if they think these machines offer any value to the consumer.' However, a local winery ower said that he thinks it is a great way to offer wine to people.'
Beer vending machines are common in Britain and European countries, as well as in Japan. It will be interesting to follow the results of this project as success would surely lead to the spread of the machines to the rest of the world. Liquor Boards in South Africa have not been keen on allowing liquor vending machines and LiquorWise does not expect this to change soon.
(Article by Daily Mail(UK), edited by LiquorWise)
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Friday, December 16. 2011Top 24 SA Wines - Selected by the SA Wine Index
Liquor & Wine - LiquorWise are always looking for articles which may interest liquor licence holders or potential liquor licence holders. Although not always strictly related to liquor licensing itself, articles on affordability and making it easier to choose is part of the LiquorWise philosophy.
Picking a wine that you’ll enjoy can be a daunting task, whether staring down the aisles of a liquor store or glancing at the wine menu at a restaurant. Therefore, we found the South African Wine Index (SAWi) a great help to consumers and liquor licence holders. The Index is a multi vintage wine rating, deducted from the combined preferences of a diverse group of wine judges from various wine competitions, providing a condensed result point. Other considerations include quality consistency while a nominal point is added for additional accolades like a trophy winner.
Top wine producers met at the Twelve Apostles Hotel in Camps Bay at the end of November to celebrate the extraordinary achievements attained by a category of wines as identified by the latest Index results.
The Top 24 Wines selected are the following : Bouchard Finlyson Galpin Peak Pinot Noir, Eagles Nest Shiraz, Hamilton Russell Chardonnay and Kanonkop Paul Sauer, Klein Constantia Vin De Constance, Rijks Private Cellar Pinotage, Kanonkop Pinotage, Saronsberg Shiraz and Hamilton Russell Chardonnay, Mulderbosch Barrel Fermented Chardonnay, Saronsberg Full Circle, De Krans Cape Tawny Port, Bouchard Finlayson Hannibal and Cederberg Sauvignon Blanc, La Motte Shiraz Viognier, Paul Cluver Chardonnay, Neethlingshof Noble Late Harvest Riesling, Groot Constantia Gouverneurs Reserve and Kleine Zalze Barrel Fermented Chenin BlancOak Valley Pinot Noir, Lomond Pincushion Sauvignon Blanc, Stellenzicht Cabernet Sauvignon, KWV Mentors Shiraz, Paul Cluver Noble Late Harvest Riesling.
LiquorWise trust that readers will agree with the wine producers that the wines are worth buying (and drinking, of course!)
Tuesday, November 8. 2011Drink Cheap Wine - I Mean Really Cheap!
Try this experiment: Walk into the nearest wine shop and ask for an “everyday wine” recommendation. Refuse to give a price range, and see what the merchant suggests. My guess is you’re out 15 bucks. Critics seem to be pushing this price point as an appropriate range for “everyday wine”— even though the phrase can’t possibly be taken literally.
If you and your significant other were to drink five bottles of wine a week, at $15 per bottle, your annual wine outlay would approach $4,000. That’s more than the average family spends on groceries.
Granted, few Americans actually drink that much wine—annual consumption is around one bottle per month (PDF) per capita—but perhaps they would if the industry hadn’t taught them that truly affordable wine isn’t worth drinking. The evidence is right across the Atlantic: In Europe, consumption is 3-to-6 times higher than in the United States. But only the most affluent would spend 11 euros to drink a bottle of wine at home on a Wednesday night. Europeans seem perfectly comfortable cracking open a 1-eurotetra-pak of wine for guests. Germans, for example, pay just $1.79 on average for a bottle of wine.
Not long ago, American wine-buying habits were very similar to the Germans’. In 1995, 59 percent of the wine purchased in the United States sold for less than $3 per bottle. By 2006, controlling for inflation, that share had dropped to 29 percent. Wines over $14 per bottle more than quadrupled their share of the market during the same period. Looking at raw consumption rather than market share, sales of over-$14 wine increased sevenfold. Sales of wines that cost less than $3 per bottle actually declined 28 percent, during a period when overall wine consumption was rapidly increasing.
There are plenty of reasons to go back to our 1990s habits, and to start using 15 bucks to buy four or five bottles instead of just one. Ernest Gallo, who, along with his brother Julio, popularized wine among the American masses, understood the psychology of wine better than anyone. He used to pour two glasses of wine for potential buyers, telling them that one sold for 5 cents, and the other for 10. According to Gallo, his guinea pigs invariably chose the more expensive option. What they didn’t know was that the two wines were exactly the same. Researchers have recently reproduced Gallo’s results, proving that our appreciation of a wine depends on how much we think it costs. If you can break yourself of this psychological quirk—or have your spouse lie to you about the cost of your wine—you’ll save a small fortune.
You’re also likely aware of the piles of studies showing that you can’t reliably pick out expensive wines in a blind taste test. Many studies show that laymen actually prefer cheaper wines (PDF). Professional wine critics are quick to point out that they, unlike you and I, can distinguish between high- and low-cost bottles in blinded experiments. Here’s the question they can’t answer for you: So what? The only thing these “successes” prove is that a small group of people have gotten very good at sniffing out the traits that the wine industry thinks entitle them to more money.
If hints of cassis, subtle earthiness, and jammy notes don’t interest you, you are not a lesser person. Wine is not art. There’s no reason to believe that aligning your tastes with those of a self-appointed elite will enrich your life, or make you more insightful or sensitive. If wine critics want to spend lavishly on the wine they like, that’s great. Leave them to their fun. Be grateful that you can gain just as much pleasure, if not more, without bankrupting yourself.
I’m not without sympathy for the American winemakers who keep wine prices high. Real estate is pricey in California, and some vintners claim they have to charge $20 or more per bottle just to break even. That’s a shame, but wine-buying isn’t an act of philanthropy. If you can’t tell the difference between an expensive wine from a small family vineyard and their cheaper competitors—or you think the cheap stuff is superior—save your money. You are under no obligation to keep vineyards afloat. A little consolidation might be a good thing. Do we really need tiny winemaking estates up and down the West Coast, not to mention Long Island, Michigan, Virginia, and Missouri?
There’s also an enormous range in the retail price of a single bottle of wine, which means the $15 bottle you bought at one store might be a $6 bottle elsewhere. A recent studyfound that a wine selling for $695 in California went for $2,000 in Illinois. The Yellowtail Merlot offered for $4.99 in Buffalo cost more than twice that much in Jersey City. Such discrepancies are due not only to taxes and varying distribution schemes but to individual store owners trying to wring a few more dollars out of clueless consumers. Again, the key here is that higher prices do not reliably reflect quality.
Finally, rest assured that cheap wine in the United States is good, to the extent that the term has any objective meaning. Falling market share over the last 15 years has forced discount vintners to compete with upmarket brands, and modern technology has enabled them to crank out consistent wines, case after case. So, if you win your $3 gamble on the first bottle, you know you’ll like the next. And, in a sense, we have an advantage over Europe, since our discount offerings are usually a notch better. European bargain wines can be hit or miss, because they’re made by cooperatives that sometimes have outdated equipment, poor inventory management, and even substandard sanitation practices. Charles Shaw and the best American box wines rarely have such problems.
You’re probably hoping for some recommendations. You don’t need them. Reviews and recommendations are great for cars or televisions or overpriced wines, because bad decisions are expensive. If you hate your cheap bottle of wine, just uncork another.
(Article by Brian Palmer, edited by LiquorWise)
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Monday, November 7. 2011World Wine & Food Expo a Hit
$443,000 worth of wine was sold at the on-site store at the World Wine and Food Expo at the Moncton Coliseum during its operating hours over the weekend and $92,000 of that in the store's first operating hour. Bill Vance, sommelier and chairman of the event said that the expo has once again shocked organizers and it's not just because of the record sales, it's because of its popularity.
"The weekend was the biggest weekend ever, sales and attendance were up," he said.Somehow the word is getting out that this is the place to be to be for education on wine and food, said Vance. "There were a lot of new people, a lot of first timers and what we noted was they were from all over the province. I have no doubt that the people who came for the first time will be back."
The grand tastings, on Friday and Saturday afternoons and evenings, saw a stunning increase in attendance, he said. "We had about 5,500, which is easily above 10 per cent from last year." Everyone involved was surprised.
"We were very surprised by it, obviously very happy about it, but it took all of us and the wine agents from around the Maritimes, it took everybody off guard," he said. The grand tasting brought in a younger crowd, but a very respectful crowd, said Vance.
"It was a lot of fun. It was a very social event, for sure. But very well behaved and people were respectful of the people working in the booths, which is very nice to see in a younger crowd." This year's expo saw a lot of new and successful events, one of which was the internationally famous Riedel Crystal wine-tasting seminar at the downtown Empress Theatre last Monday.
"The Riedal tasting, with (Doug Cohn) from New York city," said Vance. "That was really high end and a once in a lifetime opportunity to get that calibre of glasses at a price that we could sell at a reasonable price."
Over the week, they were approached by many people who'd attended the Riegal tasting and who said they were so impressed with it, said Vance. "They said that by far it was the most extraordinary wine experience they'd ever had." Having Food Network star Laura Calder in town for a few days was a really nice addition to the expo, said Vance.
"She doesn't seem to have any idea really of how popular she is and how much people like her, and I think she was really overwhelmed by that experience." Often times, people like Calder fly into a city, do a book signing, then take off later that day. But because she was here for a few days, she really got to sit back and take it all in, said Vance.
"She really got a sense to see what her impact is on (people). People were coming up to her book signing at the Coliseum on Friday and buying every one of her cookbooks, having her sign them all and having their pictures taken with her." Her trip to Moncton will stick with her, said Vance.
"She left Moncton on Friday afternoon at four o'clock, and I can honestly that I don't think she'll ever forget her trip here." They'd like build on the Calder experience for next year and bring other stars to the city, said Vance. "We'd like to do that again next year, of course with a different author."
The first day of the expo, Oct. 29, saw a prestige tasting at Tait House, which was a quick sell out and was a great way to kick off the week, the chairman said. "Just a beautiful dinner. Chris MacAdam, as far as I'm concerned, served the best meal I've ever had from him."
The expo has a partnership with several charities and proceeds from ticket sales, coat checks and tickets on items like wine fridges are donated. The Tree of Hope campaign, Sistema, the Capitol Theatre Foundation and the Fyffe Foundation all benefit. "The funds (the Tree of Hope campaign) collected were up quite a bit from last year," said Vance.
The overall sales from the on-site store at last year's expo was $486,000, which was the highest on record, and $416,000 in 2009. Sales are down from last year, but that's a give-in with the state of the economy, said Nora Lacey, manager of communications for the New Brunswick Liquor Commission. "Given the challenges we are facing with the economy, it is not entirely surprising that we are down slightly from the record high last year," she said.
As wine continues to be a growth category for NB Liquor, any remaining expo products were expected to sell in NB Liquor stores over the coming weeks. "The remaining festival product is distributed to the top wine stores in the province," she explained.The expo isn't just about drinking wine and making money,said Lacey.
"The expo is a great opportunity to educate our customers about the different types of wine available here in New Brunswick, and it's a good opportunity for the supplier community to be able to showcase their brands in such a unique setting like the World Wine and Food Expo."
(Article by Times&Transcript Canada East - Edited by LiquorWise)
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China a Promising - Not Easy(!) - Wine Market
Wine makers from around the world are eager to tap demand in China as growth slows in their traditional markets. However, industry players say the increased competition and a lack of wine drinking culture mean it won't be easy.
Countless vintages made by producers ranging from boutique vineyards in New Zealand to famed chateaux from France's Bordeaux region were sipped and spat by thousands of people attending a major wine and spirits trade fair last week in Hong Kong.
Nearly 1,000 exhibitors from 37 countries hoping to cut deals with the 2,750 buyers were expected to attend the fair. Vineyards from countries not usually known for their wines, including Georgia, Israel, Latvia and Malta were in attendance for the first time.
Many are keen to get a foothold in China's wine market, which has taken off in recent years, particularly at the high end, as newly wealthy collectors splurge for bottles of fine French wines at auctions in Hong Kong. The southern Chinese city abolished wine import duties in 2008 in a bid to become a regional wine center and imports surged by nearly 60 percent in the first nine months of 2011 to $940 million.
"People think that because China has 1.4 billion people, it's easy to come here and sell wine, and that's the catch," said Pancho Campo, president of the Wine Academy of Spain.
In September, a private Chinese buyer paid 4.2 million Hong Kong dollars ($541,000) for a 300-bottle collection of Chateau Lafite Rothschild consisting of 25 cases spanning 1981 to 2005 at a Christie's auction. That was the highest price for a single lot of wine at auction this year in a sale that raised $7.7 million in total.
China is the world's fastest growing market for still light wine and is forecast this year to overtake Britain as the fifth biggest market, according to a September report by UK-based International Wine and Spirit Research. The report forecast that China's wine consumption will double to 250 million 12-bottle cases by 2016, from 125 million in 2010. If growth rates remain unchanged, the country could become the world's biggest wine market in the next 20 years, the report said.
The tantalizing prospect of such rapid growth drew Daniel and Lesley Jackson, husband and wife owners of Redoubt Hill Vineyard, a boutique winemaker in New Zealand's Marlborough region — famed for its sauvignon blanc — to the trade fair for the first time. "The traditional markets, apart from Australia, are a bit stressed at the moment — Europe, Britain, America. Asia, obviously their economy is doing really well," said Daniel Jackson. The Jacksons were trying to find a distributor in Hong Kong and China for bottles of their sauvignon blanc and pinot gris, which retail for $35 New Zealand dollars ($28).
Winemakers are hoping growth in China will offset flagging sales in traditionally key markets such as Europe, where a long term decline in wine drinking has been exacerbated by the continent's government debt crisis.
China's status as the world's biggest and fastest growing consumer market has drawn many foreign businesses in pursuit of big profits. But some, retailers in particular, have found that size alone doesn't guarantee success, forcing them to pull out or change marketing strategy amid tough competition — and in some cases after misreading local preferences.
China's wine market is split between the high end, where the wealthy spend thousands of dollars on bottles as an investment or to drink at restaurants on special occasions and the low end, dominated by local and foreign producers selling wine for just a few dollars a bottle or in large containers. The middle market doesn't really exist, said Campo, who is also president of the Wine Academy of Spain.
That will be a particular challenge for so-called New World winemakers from countries such as Australia, South Africa, Chile and Argentina, who will face tougher competition on prices, said Antonio Gaudioso, export manager at Vecchia Cantina di Montepulciano, a cooperative in Italy's Tuscany region. That's because in China, when it comes to foreign wines, red wine from France is prized much more than those from other countries — even those from other Old World producers Italy and Spain.
Regardless of their origin, winemakers will have to work hard to educate China's new middle classes about wine and spend money promoting their vintages as they develop the middle market, both Campo and Gaudioso said.A key challenge will be adapting to a different culture of imbibing at meals. "It has nothing to do with food pairing, it's just to do with ganbei," said Campo, referring to the Chinese equivalent of "cheers." The word is a common utterance at formal banquets where diners take turns toasting each other with baijiu, a clear sorghum liquor with more than 50 percent alcohol content — usually until everyone is blind drunk.
"If these people, whenever they have a dinner and they can include wine as one option to baijiu, you're talking about millions of barrels that can be consumed throughout China," he said.
(Article by Associated Press – Edited by LiquorWise)
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Wednesday, October 26. 2011Oppose any plan to put liquor, beer or wine in convenience stores
If last night's discussion is any indication, proponents of beer and liquor being sold in convenience stores, should not expect New Tecumseth council's support.
At least not from Ward 4 councillor Fran Sainsbury or Ward 7's Bruce Haire who both said last night they were against making "access to alcohol easier" and sought council to support the request by MADD Canada, the Ontario Public Health Association, and the Centre for Addiction and Mental Health, "to oppose any plan to put liquor, beer or wine in convenience stores."
The lobby effort from the three organizations is in response to a current effort by the Ontario Convenience Store Association to convince the provincial government to ease controls that limit the sale of alcohol to the LCBO and its agency stores, and The Beer Store chain, which is mostly owned by Labatt and Molson Coors and regulated by the Alcohol and Gaming Commission of Ontario.
"Province-wide, there are approximately 1,000 LCBO and Beer Store retail sites," according to the letter signed by the CEOs of each organization. "The estimated ratio of convenience stores to LCBO and Beer Store locations is 7 to 1. That means beer and wine would be sold at an additional 7,000 locations in communities across the province. (...) From your own community's perspective, consider the number of convenience stores in your municipality and what the outcome may be if they begin selling alcohol and beer. Consider the proximity to many of those stores to local high schools."
Deputy mayor Rick Milne came out in support of the changes, noting "I can't see anything wrong with allowing free enterprise in the stores."
In New Tecumseth there is an LCBO and Beer Store in Alliston and Tottenham, and Beeton is served by an LCBO agency store at the Foodland. Zehrs Alliston operates a wine store.
In the end, council referred the matter to the Police Services Board for its views, and will return back as a future committee item for further direction. Ultimately it's a decision of the provincial government.
(Article by Madhunt – Edited by Liquorwise)
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