Do Case Discounts Actually Stifle Wine Purchases?

This question has been on my mind for some time so I thought I'd get it out there for discussion both from consumers and retailers alike.

If you're like me and many of my friends, your cellar is full, you've got more wine than you need and yet you're always in the market for certain specific wines. If a retailer has a wine you're looking for, and that retailer has a pricing model where for example a mixed case is 20% off - what do you do?

Do you put together a 12 bottle case of other wines you know you'll eventually drink? Do you get together with friends to split a mixed case? Or do you consider the whole production a hassle and delay the purchase indefinitely?

Are case discounts actually having the opposite effect they're intended to have?

There are basically three pricing models in stores in this respect: Low, medium, and high case discounts.

  • Low
    On the low side we have operations where the first bottle is offered at the maximum discount. There are no case discounts.
  • Medium
    In the middle is a more moderate 10% - 15% discount for a mixed 12 bottle purchase.
  • High
    At the other end of the spectrum are placed where 25% or even 30% discounts are offered for mixed case purchases of 36 bottles. Typical margin for a retail wine shop is 33% so when a retailer offers a 30% discount it's usually what's required to get the prices down out of the stratosphere.
For both the middle and high discount case purchase models, sale items are typically excluded because offering a wine for 30% off would create a situation where the retailer would sell a product for less than they paid for it. Not that a retailer would like to do this, but it's illegal in Massachusetts. Sale items usually count towards reaching the required quantity of bottles, but they're not discounted below their sale price.

Which model works best for consumers? And which is most effective for retailers?

My reason for writing this is I often find myself not buying from retailers whose model requires hefty case purchases for favorable pricing.

If there's one thing a deal hound hates it's paying more for something than he has to. Even if it's just a few dollars here and there, it's a percentage game because over time the dollars add up.

Some retailers will give you a case discount if you're a regular even if you buy just 2 or 3 bottles. While this sounds good in theory in reality it's annoying to both consumers and retailers. It's annoying to consumers the first time they visit a shop and the employee who typically gives them the discount doesn't ring them up. And it's annoying to retailers because once a customer gets a discount they expect it forever.

What do I Like?

I like a model where I only have to buy what I want, and everything I buy is at the best possible price. I like receiving emails offering specific wines at very aggressive prices that I can pick and choose from, buy what I want, and over time build towards a case purchase. Then, I'll either pick it up at the store or arrange for shipment a couple times a year.

This is different than what I look for when buying, for example, a bicycle. Or tires. I don't buy bicycles or tires often enough to sweat it. I just visit a local shop or two, consider convenience and service, and go with my gut instinct.

But when you're buying wine again and again it pays to think about this stuff. 

Consumers: What do you think? Looking back over the past couple years which models have earned more of your business?

Retailers: What are your thoughts on this? How did you decide to go with the case discount model you're using? And what trends have you seen as you've run specials offering deeper discounts with lower quantity purchases?


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DRC Lafite Languedoc! [China]

Simon Staples, aka @BigSiTheWineGuy who is sales director and Bordeaux buyer for Berry, Bros & Rudd, tweeted this photo. Notice anything amiss? Here were his comments: Romanee Conti and Lafite together? In a “Vin Rouge Sec”? From the Languedoc? Here it is!…..Gotta be a 100 pointer!! He added in response to a commenter that he [...]

Source: http://feedproxy.google.com/~r/blogspot/GuSC/~3/-4XgbusSp_o/

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Kendall-Jackson Humanizes Their Brand

It’s rare when network TV and wine come together but when it does I take a look. I’m not a regular viewer of Undercover Boss but might be after this episode at Kendall-Jackson Wine Estates. New President Rick Tigner works at the bottom of this organization and learns a lot. And he does the right [...]

Kendall-Jackson Humanizes Their Brand originally appeared on Winecast. Licensed under Creative Commons.

Source: http://feedproxy.google.com/~r/Winecast/~3/x4ruIoL8u44/

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Caymus Wine Dinner Reveals Surprising Value Plays

The Wagner Family of Wine includes Caymus Cabernet, Belle Glos and Meiomi Pinot Noir, Mer Soleil Chardonnay, and Conundrum blends. Joseph Wagner (second from the left in the photo above) hosted an evening at the Boston Wine Festival featuring their wines including a retrospective sit-down tasting of Caymus Special Selection Cabernets followed by a paired wine dinner.

Some of their more expensive wines were every bit as good as I hoped they'd be. And a couple of their more affordable wines showed absolutely spectacularly in an elegant setting.

Between the seminar and the dinner was a reception where Conundrum White was poured. According to Wagner, Conundrum was created to enjoy with Asian fusion cuisine. It's one of those wines that, I think, makes numerical ratings seem especially silly. Because either you like a slightly sweet fruity white wine or you don't. It's not a question of quality. It's a question of style. It carries a $24 release price and is readily available available at retail south of $20 thanks to 92,000 cases of the wine being made at last check (2007 vintage). They've recently introduced a Conundrum Red as well.

Wagner kicked off the evening by mentioning that Chef Daniel Bruce never makes the same dish twice for these wine dinners. The Boston Wine Festival runs from January to March and features some of the top wineries and the world. The Boston Harbor Hotel has these things down to a science. I thought the service was excellent.

Chardonnay

The first course was a Pan Roasted Cod Loin with a Georgia Sweet Pea and Chardonnay Sauce.


The 2010 Mer Soleil SILVER Unoaked Chardonnay was showing beautifully. Crisp and creamy. Beautiful. Chablis-like in style. Clean pineapple aromas and flavors. The wine ferments and is aged in cement tanks which they choose to denote with distinctive ceramic bottles. Very cool packaging and a tremendous effort, especially south of $20 retail. 91 points WWP: Outstanding

This was poured alongside the 2009 Mer Soleil Barrel-fermented Chardonnay which provided a chance to assess the affects of a varying oak regiment on the two Chardonnays. I normally like the creaminess some time in oak can provide Chardonnay but this one took on a bit of an untamed "feral" note that I wasn't crazy about. Underlying this, the two wines were quite similar but I definitely preferred the unoaked SILVER. 84 points WWP: Good

Pinot Noir

Next up was were the Pinot Noirs. Chef Bruce prepared a Flash Smoked Slow Roasted Long Island Duck Breast in a Tomato, Wild Mushroom, and Wild Leek Broth. It was a brilliant pairing.

It's hard to think of a more reliably delicious sub-$20 California Pinot Noir than Meiomi, and the 2010 Meiomi Pinot Noir is no exception. It's a pizza-night staple around our house, so seeing it "dressed up" in this setting was interesting. I'd previously assumed that Meiomi was a blend of the single vineyard Belle Glos wines. It's not. None of the fruit in Meiomi comes from Las Alturas, Clark & Telephone nor Taylor Lane. But it was showing so well. Bright, rich, and pure berry fruit. I love California Pinot Noir and after tasting a bunch of [outstanding] Cabernet Sauvignon this was a luscious return to comfort. 92/100 WWP: Outstanding

The Las Alturas is typically my favorite, so I was pleased to see them pouring the 2010 Belle Glos Las Alturas Pinot Noir. In line with prior vintages which so many of us have adored, it's got this distinctive slightly sweet spice note and tobacco leaf that blends beautifully with juicy fresh strawberry aromas and flavors. I thought this wine was outstanding as well, but to be honest I liked the Meiomi just as much. 92/100 WWP: Outstanding

A Family Winery

I was sitting next to Joe at the dinner so I got a chance to chat with him quite a bit. He's only 29 years old, but coming from a line of five generations of winemakers has clearly provided him with a wealth of knowledge he's putting to good work. He's got five (5!) kids of his own and, charmingly, stopped to take a picture to send home to his kids of a Lego man they'd sent with him with the audience in the background.

Belle Glos is named after Joe's 96 year old grandmother Lorna Belle Glos Wagner. Joe said she drinks "whatever she wants" but mostly Conundrum these days.

Joe's brother Charlie focuses on white wines for the family. They have two sisters who are increasingly getting into the business. Even though production levels have increased since their first publicly released vintage in 1972, it's still very much a family affair.

I asked him what other California Pinot Noir producers he'd recommend for folks who like the Belle Glos style. Three he mentioned included Pisoni, MacPhail, and Peter Michael Le Moulin Rouge. Check 'em out!

Cabernet Sauvignon

The main course was a Herb Rolled Char Grilled Prime Tenderloin with Bacon Tossed Marbled Potatoes, Baby Zuccini, and Spring Onions. Sorry, no picture. I must have enjoyed it before remembering to snap a photo!

It was served with two Caymus Special Selection Cabernet Sauvignons: 2005 and 2009. It was interesting to taste these wines from the earlier seminar again, from different bottles, and along with food. The 2009 settled down a bit when paired with food (I thought it was extremely fruit-forward at this point) and the 2005 was vibrant with the tenderloin. Gorgeous stuff.

Dessert 

A Warm Nectarine Crostata with Honey Strawberry Coulis and Honey Ice Cream was paired with a 2004 Mer Soleil Late Harvest Viognier. It was a delicious end to the evening.


Conclusions and Recommendations
If there's one thing the wines in the Wagner line-up represent, it's the intersection of delicious, approachable, high quality wines. Their entry level wines provide an affordable window into their style of winemaking and their more expensive bottlings are often rewarding purchases.

The Meiomi Pinot Noir is hard to beat south of $20. And the Mer Soleil SILVER Unoaked Chardonnay is one I'll seek out again. Combined with the always-delicious Belle Glos Las Alturas Pinot Noir, these are some of my favorites value plays in the market.

The Boston Harbor Hotel does a tremendous job with these wine dinners. Check out the Boston Wine Festival next year when it comes around again.

Disclosure: Attendance on a complimentary blogger pass.

Coming up next on the WWP: Trip reports on Littorai and Kosta Browne. I'd love it if you SUBSCRIBED to be informed of new posts.


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Napa Valley Trip Planner ? Plan and Map your trip to the Napa Valley

The Map displays 150 wineries in the Napa Valley. There are some 400 brick and mortar wineries in the Napa Valley and we have whittled that number down to the wineries that we think offer the most to travelers to the Napa Valley. We may have missed a few good wineries, so if you think you have a winery to recommend for our database, please let us know. Continue reading

Source: http://www.winecountrygetaways.com/napablog/napa-valley-trip-planner-%e2%80%93-plan-and-map-your-trip-to-the-napa-valley/

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Field Notes from a Wine Life ? Cover Story Edition

Odds and ends from a life lived through the prism of the wine glass…

The Wine Spectator Affect

When I received my November 15th issue of Wine Spectator on October 11th, featuring a cover shot of Tim Mondavi and an feature article on him and his estate winery Continuum, I captured some online research reference points so I could have a baseline to measure the effect that a flattering Wine Spectator cover story might have on a winery in the digital age.

Using Wine-Searcher, CellarTracker and Google Keywords search data to track various data points, the results, while not directly linked to conclusions, do indicate a small bump in interest as a result of the cover piece.

For example, Wine-Searcher data indicates that the average bottle price, an indicator of supply and demand, rose $2 month over month, from $149 a bottle to $151 a bottle.

image

In addition, the Wine-Searcher search rank (always a month behind) indicates that Continuum was the 1360th most popular search in September.  By Friday, November 11th the Continuum search rank had increased to 471st for the month of October. (See the top 100 searches for October here).

Likewise, interest at CellarTracker increased, as well.  The number of bottles in inventory from October 11th to November 11th increased by 177 bottles, likely no small coincidence.

Finally, Google searches increased fivefold from an average of 210 monthly searches to approximately 1000 monthly searches.

What does this all mean?  Good question.  The truth is, a Wine Spectator cover appears to have moved the needle a bit, and while the easy route is to take a righteous Eeyore approach to mainstream media and its blunted impact in the Aughts, as contrasted to what a Spectator cover feature or glowing words from Parker meant just a decade ago, I believe a more tangible takeaway is to realize that these sorts of cover stories don’t happen in a vacuum and that Wine Spectator cover and feature was likely a result of weeks, months or even years’ worth of effort from a PR professional.

In an attention-deficit, social media-impacted, offline/online hybrid world of information consumption with mobile and tablets proliferating, in order to break through to (and ultimately assist) the consumer, the value of the PR professional, an oft neglected part of the marketing hierarchy, in reaching out and facilitating the telling of a winery’s story seems to be more important than ever.

It’s not about press releases, it’s about people supporting and telling the winery story, repeatedly, as a professional function – that leads to media notice, and that leads to 14 cases of wine being sold and inventoried at CellarTracker in a 30-day period of time.  It’s perhaps obvious, but not adhered to.

Wine Labels

To me, a wine bottle is a blank canvas that can either inspire in its creativity or repel in its insipidness.  While I have a reasonably conservative approach to the kinds of wine I want to drink relative to technological intervention, I am unabashedly progressive when it comes to the kind of wine labels that appeal to me.  In support of my interest with wine packaging, I keep an eye on The Dieline wine blog to see what’s happening in wine label design (another example from The Coolist here) and I also pay attention to the burgeoning field of wine label design contests. 

What say you about progressive labels?  Like ‘em?  Loathe them?  I placed a poll to the right.

Below is a slide show of winners from the recent International Wine Label Design competition.

Reconciling the Contradiction

I will lobby the nominating committee of the Nobel Prize in Economic Sciences on behalf of anybody who can help me understand how it is that in the span of a week I can see multiple research reports (here and here) on a revived sense of fiscal austerity by consumers yet other reports (here and here) indicate that wine above $20 is the fastest growing segment this year.

These two clearly don’t jive with each other, yet I’m witless to understand why wine is “trading up.”  Help! 

 

Source: http://goodgrape.com/index.php/site/field_notes_from_a_wine_life_cover_story_edition/

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