Taste new wine

Its 2012. Time to make some new resolutions, explore opportunities, learn new things – time to taste and try new wines! And, when it comes to wine, there’s always lots to learn. While I always strive to learn more about the wine industry, wine issues and trends, I also look for ways to discover and  taste new wines and  varieties. So .. how best to find and taste new wines and varieties?

There are several good choices:

1. - Take advantage of wineries, new flash sites or out of state retailers that carry wines you cannot find locally to taste and try new wines
2. - Travel to wine regions to taste new wines and varieties
3. - Identify one or more local wine shops and/or wine focused groups as an opportunity to taste new wines

If you are located in the United States and not within the 38 states (hopefully New Jersey will be #39) that currently allow for direct shipments, you will be limited by what is distributed  through the 3-tiered system (producer – distributor – retailer), unless you travel nationally or internationally. This means the distributor first, then the retailer will decide what will be made available. Unfortunately, this greatly limits both the wines and the varieties available as well as your options for trying new wine brands or grapes.

Should you reside in one of the states that allow direct shipment, you can take advantage of either joining a winery wine club, scouting wines from retailers outside of your area, or trying new flash sites that have come on the scene over the last 3 or 4 years as a result of excess inventory and reduced demand brought on by the worldwide economic mess.

Lets take a quick look at each.

Buying wine direct from a winery: There are over 7,000 wineries in the US alone. Because of the 21st Amendment, shipping wine across state lines can be mind boggling at best. Even if you are within one of the 38 states that allow shipment, it is possible that the winery does not ship to your state. This could be a matter of cost (fees or other costs keeping up with regulations) or simply not enough wine produced to support broad shipment. If you find a winery that you would like to try and it does offer shipment, then you can proceed to purchase either individual bottle(s) or join the wine club. If you purchase by the bottle be prepared to pay full retail and likely shipping costs. This is the most expensive route for the buyer. In order to get discounts and special offers, it makes more sense to join the wine club, which is better both for the consumer and the winery.

Bottles are normally shipped quarterly or semi-annually to wine club members. Most of the time you only need to sign up for one year and then renew if happy with the wine and the service. Many times the wine maker will determine the contents of each shipment, although often there are some variations. For instance, many wineries will provide the option of shipping only white or only red wines. The major benefit to the wine club is not only discounts and sometimes free shipping. You will also be offered wines that are not available generally to the public, and if you plan on traveling to the winery, often you will be able to participate in no cost tastings and events.

 Buying wine from an out of state retailer: Again, there are thousands of retailers that sell wine. Depending upon your location and the out of state retailer’s location, you can assume some of the same wines are offered, but often additional wines that you cannot source locally. Here you can buy one bottle or cases at a time (again depending upon your State’s regulations). The out of state retailers will operate much the same as those in state in terms of promotions, so you can assume close outs and sales at different times of the year.

Normally, buying from an out of state retailer is done on line. There are many out there including Wine.com, Wine Anthology, K&L Merchants, and Wine Library (think Gary Vaynerchuk:-) to name a few. There are also special sites more like a “negotiant”, where they will buy wines from wineries, then rebrand. This will often drastically reduce the price that the original wine would fetch, but you will only know the general location, variety or blend, and year from which it was sourced, not the actual winery or winemaker. A good example is Cameron Hughes, where you can purchase single bottles, cases, or samplers, or join the wine club (you can chose red, white, red and white or seasonal lots).

Buying wine from a flash site: Sites such as Tillsoldout, Lot18, Cinderella, Invino, Last Bottle Wines, Last Call Wines, The Wine Spies, Wine Woot and Wineshopper(see below for a summary of each).

Above descriptions courtesy Wine & Vines Flash Report

According to Wines & Vines, the number of offers have doubled from 300 to 700 in just the last year. These sites normally sell one wine at a time,  one wine daily, or sometimes 2 – 6 at a time, and often at large discount. Last month the top discounter was Til Sold Out at 54% (Amusee). Some ship directly, while others act as the middleman letting the winery ship (Lot 18 – which in some cases may limit shipment based on where the winery is located). Regardless of the economy going forward, most believe these sites will continue unabated.

Particularly for the flash sites, but also pertaining to buying from any out of state option, the good news is that you will likely identify and be able to taste a variety of new wines that you are not able to find locally. The bad news is that if you don’t know what you are buying you may find yourself with several bottles of good wine that simply isn’t to your taste. Now there are ways to help avoid “mistakes”.

Wine Spectator Vintage Chart Application

Here are some tips to help you determine a likely good buy :

1. My first recommendation is to download (to your desktop, smartphone or pad)  handy vintage charts that give you an idea of the vintage ratings by location and variety.  In this case you’re not evaluating any particular wine, but rather getting a quick better understanding of the overall quality of wine produced in a particular year from a particular wine region, often designated by the variety. For instance, if a 2007 Cabernet Sauvignon is being offered from Napa Valley and you have downloaded the free Wine Spectator Vintage Chart, you will see that the vintage for Cabernet Sauvignon in Napa for 2007 was rated a whopping 99 points. This won’t guarantee the wine will suit your taste, but it will suggest there was a lot of good Cabernet produced in Napa Valley in 2007. On the other hand, if a 2003 Cabernet Sauvignon is offered, that rated a disappointing 85, which suggests a bit of caution. Some other charts to consider: Robert Partker, Chiff, Artisan Vineyards, and speciality charts such as provided by The Wine Insider to name a few.
2. Secondly, for pricing evaluation use sites such as wine-searcher.com or perhaps Snooth. Here you can check to see if the deal being offered is really highly discounted or not (keep in mind that some low production wines may not show up at all on wine-searcher since they are not in “distribution” per se).
3. Now that you have an idea on how to evaluate the vintage and the price, its time to decide whether or not the wine will likely be a winner for you. This is the most difficult decision since wine evaluation is subjective – a very well made wine may not be to your taste – so a 50%+ discount is not a good deal if you don’t like the wine.

One thing not mentioned above – these sites often will offer free shipping for some minimum number of bottles purchased. The number usually varies with the cost of the wine. As an example, on Tillsoldout the average number is normally 4 for bottles ranging from $10 to say $30. For more expensive bottles the minimum purchase can be as low as one. So if you are looking at a bottle with a price of say $15 the minimum purchase for free shipping is likely 4.  So how do you go about minimizing mistakes (don’t worry about flawed wines – if a bottle is corked it is returnable)?

Although I am in full agreement that wine reviews are extremely subjective, they can be a very useful tool when evaluated as a “clue” rather than as a conclusion. Most of the sites will provide reviews by the winemaker, winery or some person who is evaluating for the flash site. Here I would read the review looking for some clues such as “fruit”, “oak”, “earthy”, “spicey”, “full bodied”, etc. These can be either good or bad depending upon what you look for in a wine. Look especially for average weightings from people who have bought that particular wine from the site. Several sites will provide this information as well as encourage you to review and post your review of a wine you have bought.

Next check out other sites that may also include people that have bought that wine before. One very good site is Cellar Tracker.  Cellar Tracker now has over 180,000 users and over 2,000,000 wine reviews. These are typically wine enthusiasts not professional tasters and the reviews reflect a wide number of comments often on the same wine. Snooth is another site you can check regarding wine reviews as well as countless wine blogs and wine focused on line news. Lastly, there are dozens of wine columnists and bloggers that provide tasting notes on a wide variety of wines.

In an era when:

• Unemployment is at historical high levels and has remained high for over two years,
• The lynchpin of consumer wealth (housing) for the American middle class is in a prolonged slump with over 22% of home owners under water,
• The top 1% of the population garners 40% of the wealth – the middle class is shrinking while those in poverty substantially increased,
• Debt continues to spiral out of control,
• It is getting harder and harder for Americans to afford or access quality healthcare,
• Infrastructure across the country is crumbling,
• Trading partner currencies are being manipulated,
• The banking industry continues to exercise policies that could easily cause another worldwide recession,
• We continue to engage in two wars, and …
• Fossil fuel based energy continues to hold long term economic growth hostage,

What does 109 of our fine representatives in congress focus on? You guess it!

The Community Alcohol Regulatory Effectiveness Act of 2011 (HR 1161)  – introduced by Representative Jason Chavetz (R) of Utah as a follow on to HR 5034 – a piece of legisation that will not solve, rectify or mitigate any of the above.

According to the Statemans Journal, the special interests supporting this bill (the National Beer Wholesalers Association and the Wine and Spirits Wholesalers of America), depict this as “an attempt to rescue state and local control over alcohol sale from online alcohol sellers, big box retailers, international alcohol suppliers and professional plaintiffs that want federal courts to allow them to sell ever-larger volumes of alcohol at low or below-cost prices – a trend they see as leading to social ills such as more underage drinking.

Why an oxymoron? An oxymoron is defined as “a figure of speech in which incongruous or contradictory terms appear side by side”. In this case, the National Beer Wholesalers Association and the Wine and Spirits Wholesalers of America don’t have a problem in increasing the volume of sales of alcohol or providing pricing promotions where it serves their interests, they simply want to ensure that if volumes and revenues are going to increase it has to flow through them.

The intent of this bill is to unravel the Granholm vs. Heald Supreme Court decision that disallowed state laws that thrash the Interstate Commerce clause of the Constitution in favor of special in-state treatment of wineries. This bill would ensure that when unfair, special interest state laws are enacted, they cannot be challenged, keeping that the current 3-tired monopoly remains in tact.

One thing this bill would do is decimate the small wine producers who do not produce sufficient volume to get the attention of large distributors and instead depend very heavily on tasting room and wine club sales. This would effectively eliminate out of state wine club sales. So at the very least this bill would increase unemployment for small producers.

I am not going to restate all the facts about this bill – this has already been done on countless sites such as Free the Grapes,  Vinography, Stop1161, Fermentation, as well as countless other sites.

• But I will state the obvious:
  This is a special interest bill that serves a small minority that are desperate to keep a monopoly in place
  It has nothing to do with states rights .. they already have them courtesy of the 21st amendment
  It has nothing to do with keeping alcohol out of the reach of minors
  It has nothing to do with ensuring sales taxes are paid

And just to let you know I am not focusing on any particular party, of the 109 co-sponsors approximately 42% are Democrat and 58% Republican.

My question to the 109 co-sponsors would be:

• Did you read the bill or simply sign based on contributions and/or quid pro quo favors?
• Do you understand the special interest provisions and the harm it can cause to small wineries and consumer choice?

If you haven’t read the bill, dah … read it!

Finally, how about focusing on the real problems facing this nation that are in the best interest of all Americans?

What a great way to educate the public on wine – how grapes are grown and harvested, how wine is produced, the concept of “terrior”, the history, culture, and dedication of those that produce wine – all by keeping the bottles hidden behind glass doors and providing various snippets to the potential buyer – snippets no doubt written by the distributor that is trying to push one brand over the other.

According to a recent article in the Post Gazette, the kiosks have 4 coolers with … an astounding 53 different wines (let’s see with about 7,000 wineries in the US alone with say an average (being very conservative) 3 wines each, that means the great citizens of PA are being offered about .0025% of what is available in the US, not to mention the thousands of wines produced around the world). How was this selection made? I highly doubt it was selected based on quality and diversity.

In a time when only large producers can hope to secure distribution and only 36 states allow direct shipment, here comes Darth Vader – another attempt to save money while ensuring that access to small producers is kept at bay. Vinography said it well in  “How to AVOID selling wine in Pennslyvania”.  This is an excellent way to hinder sales – just what the wine industry needs after the recent recession.

Now, I am not totally opposed to any automation. In a trip to Madrid I visited a wine shop where you could purchase a card and then use that card to get tastes of various wines of the region. The bottles were displayed along with a full explanation of where produced, which varietals, methods, and tasting notes. There were also employees in the store to provide additional information about the wines and producers.

I understand convenience and certainly agree with keeping alcohol out of the hands of those too young to drink or those that abuse it, but in my opinion this going in the wrong direction. Education and knowledge is key to the enjoyment of wine, and this contraption satisfies neither.

Hmmm….I highly doubt Pennslyvania will be on my priority list of places to visit – at least not unless I bring my own bottle.

This bill was recently introduced in Congress to safeguard the status quo regarding the three-tiered system of alcohol distribution and ensure it remains without challenge even in those cases where the Supreme Court has ruled related state laws are discriminatory.

There are several sites providing a good amount of detail  including Tom Wark’s Fermentation, WineIndustryInsight, Decanter and WineHarlots, to name a few.

As a wine lover I find this attempt by the Wholesale lobby incredibly disturbing at the least . At a time when this country is simply fed up with special interest group legislation, this lobby wants to have their cake eat it too so no one is able to legally challenge them in the future.

To me this is a clear case of self interest and greed; this group wants to make sure that no one can challenge their monopoly. They are getting the support of several State Attorney Generals with the argument that the current justified litigation is too costly – states should not have to put up with it (boy, imagine if the health insurance industry came up with a similar bill and argument: “we should not be bothered with what we consider to be frivolous lawsuits if we unjustly deny coverage to sick people.. it costs too much and takes too much time”!)

Why do I suggest this is absurd?

First, no one is trying to do away with the three-tiered distribution system. From a logistical viewpoint, there are many large wineries that need the current system just to get their product to market. So even after 70 years there is still a place for the system itself.

Secondly, the current challenges in the courts are not based on anyone challenging the state’s right to regulate alcohol, they are challenging the state’s rights to implement laws that clearly discriminate between in and out of state wineries and retailers. Yes… they are reeling against anyone that might challenge them from implementing self interest laws that are clearly in conflict with laws regulating interstate commerce.

So what are the salient arguments?

My interpretation:

“The three-tiered distribution system has served us well since the repeal of Prohibition in 1933. If this system is circumvented it will lead to underage drinking, more alcoholism, loss of taxes and loss of jobs. Further, the cost of defending current laws is becoming expensive and the States should not be burdened with such lawsuits.”

Let’s take these one at a time:
1. The three-tiered system has served the industry well in terms of an orderly transition for a decimated industry at the end of Prohibition. With that said, so has regulations regarding telephone service, television, radio, and many other technologies and processes. However, most all of these have gone through their own transitions based on changing needs and demand. Imagine what things would be like if everyone still only had only land lines to work with, or needed to use cash for all transations. The bottom line is that needs change and most industries and businesses change with it. Actually, the three-tiered system has changed. It now includes a much smaller number (albeit much larger size) of distributors, many who control vast amounts of the industry – from the vineyards, to the wineries to distribution. So there is now a lot on the line for these mega distribution companies (hence… lot of money being spent at the State level to keep these laws in tact).
2. I would like someone to point out to me how the current system has fully curbed underage drinking or alcoholism. This lauded system still has many cracks in it. I would also like someone to prove that direct shipment would drastically increase either of these. If that were the case, every state in which direct shipment is available would have drastically higher rates of underage drinking and alcoholism, which is not the case. (I am not saying there are no alcohol issues as that would be naive. What I am saying is that allowing direct shipment does not translate into either of these assuming well identified safeguards are implemented.)
3. Direct shipment states collect taxes and fees from wineries that wish to ship into their state. Tax collection is not an issue.
4. The next one is loss of jobs. I look at this issue much the same as under age drinking. There is no basis for there being a loss of jobs. The three-tiered distribution system will still have plenty to sell. The issue here is simply allowing those that want access to wines that are not currently offered to be accessible. These are not the high volume wines currently in mass distribution, but rather, small volume winereies that often can’t get representation in the current system. This saves jobs not the way around.
5.Lastly, let’s look at the absurd argument that States should not be bothered with lawsuits to refute laws that clearly discriminate between in state and out of state wineries. Again, this is akin to saying after the most recent catastrophe in West Virginia that mining companies should not be held accountable for safety because the cost of litigation is too expensive. If its wrong its wrong.

My advice to States:  Don’t draft discriminatory laws and you won’t have to deal with related lawsuits!
In my opinion, this is clearly a bill that should not see the light of day. It serves one purpose only – to safe guard a monopoly initially implemented 70 years ago. Time we updated our laws to reflect the demands, capabilities and promise of the 21st Century.

If you feel the same way I do, I encourage everyone to write to their representatives to reject this well crafted, special interest bill that is an affront to all wine lovers. Here’s a link to help you make your voice heard (courtesy of Free the Grapes)

As Tom suggests: Kill bill – HR 5034.

• As an example, a very high percentage of production of wine from California is controlled by a small number of global organizations (won’t list them here… you can easily identify them in the report).
• I must also acknowledge that these same organizations do in fact fund lobbyists across the nation (and I assume abroad as well) to try and keep the status quo from changing. This of course is also done by powerful organizations across all types of business as a way to support continued growth and profitability – not perhaps humane, fair or reasonable, but still legal.
• Again I have to agree that these large corporations are not only wine focused, but are usually also well invested in beer and spirits.

So where do I differ with the report?

As with any facts, the key is in understanding the background and the numbers to the degree that one has an accurate picture by which to evaluate. In this case, the facts are presented from one point of view; that is, from that of an “Alcohol Industry Watchdog”.

So my humble perspective:

• Yes… alcohol in general is controlled by a few very large corporations. This is true today and it was true at the turn of the century in America, one reason why wine was included within Prohibition. In both instances the main focus is and was on profitability. However, wine is produced also by hundreds of dedicated grape growers and winemakers who have a passion for their craft and who are firm believer’s as am I that wine is and should be a part of your everyday life – not as a beverage with which to binge, but as an integral part of a healthy diet.  Yes… there are huge conglomerates in the wine industry, but there are dozens and dozens of family run wineries that are under constant financial pressure due to the economy and the difficulty of getting their product to the consumer under the current 3-tiered system.  These are very hard working individuals and families who are not wealthy, take great pride in their work, and also provide employment, pay taxes, and produce a quality product.
• Yes … these very large corporations do fund lobbyists .. but not fully as the report suggests. While these large corporations own the majority of production, they are also distributors of the product.  High volume production in any industry requires tiered distribution to support the large volumes that must flow from producer to consumer. Small producers are often shut out of distribution since there isn’t sufficient volume to interest the large volume distributors. So yes there is large scale funding and lobbyists, but not to support direct shipments or alter 3-tiered distribution. One of the issues before Prohibition was the fact that the producters (yes.. again very large scale corporations) controlled the flow of alcohol, often putting pressure at the retail level to the point of exclusivity as a way to stymie the competition. The system put in place after Prohibition (3-tiered system) was engineered to avoid this from happening again. However, over the last 70 years since the repeal in 1933 the situation has changed whereby distribution is now the controller not the producer. I will leave it up to the reader to determine which is better.

In reality, the United States has been debating the role of wine since the mid 19th Century when Nicolas Longworth worked to make wine a part of daily life (keep in mind drinking water at the time was very hazardous to your health with the alternative mostly distilled liquour) and Samual Carey, a strong advocate of temperance, insisted wine was no different than any other alcohol.

As with many aspects of life, the “truth” for the majority of people likely lies in between.

QUICK UPDATE:  According to Linda Reiff, executive director of Napa Valley Vintners, “The strength of the family business is evident in Napa Valley — 95 percent of our appellation’s wineries are family owned. And, yes, 70 percent produce less than 10,000 cases annually and 60 percent less than 5,000 cases annually.”

For more on Napa Valley, its wineries, and the last 10 years, read “Wine Tales of the Decade”.wine

Why? Because the three tiered distribution system in the United States doesn’t work very well for smaller wineries whose output and/or reputation cannot compete very well against large, high demand brands. If a winery finds itself on the outside of the system, there are few options to selling their product except locally, which may not be feasible or profitable.

In an article today by Wine & Spirits Daily entitled “Why Amazon Quit: Is it Wholesalers?  it  got me thinking about why it is so very difficult to change the wine shipment laws in this country. Is it the wholesalers? Well … yes.. there is a monopoly established in which they benefit greatly. But it isn’t just the wholesalers.

As suggested in the article, there really are now many entrenched interests in keeping the status quo:

• state regulators
• control state executives
• public health advocates
• industry policy wonks
• anti alcohol organizations
• …to name a few

The reasoning: ”vested interests in  preserving a system they contend has worked well for 75 years”

To some this statement is true. But to many others the system works well only to a point: It does not support freedom of choice for law abiding wine enthusiasts, it harms an industry with thousands of smaller brands that could otherwise employ more people, and it often hinders interstate commerce.

Progress continues to be made, but the battle for freeing the grapes will not be short term.

Let me make it clear:

I am not a resident of New York … so maybe not my business?

I am not a lawyer or judge, or hold a law degree…. so maybe I don’t know what I am talking about?

What am I?

I am a wine lover and enthusiast, and a believer that if something doesn’t make sense .. it isn’t true! (thanks Judge Judy for that one

So I find it fitting on this occaison and celebration - the 4th of July 2009 - to comment on a recent ruling by a three-panel judge in the Second Circuit Court of Appeals, which illogically upheld a similar judgement from 2007 regarding restricting direct shipment of wine to consumers in New York from out of state retailers when the state of New York allows shipment from in state wine retailers.

If I recall in Granholm vs. Heald in 2005 the court ruled that a state cannot discriminate between in state and out of state wineries – that if the state allows in state wineries to ship directly to consumers, it must also allow out of state wineries to do the same. The issue was pitting the right of states to control the sale and distribution of alcohol (set after Prohibition) against the the Commerce Clause in the Constitution (hence how fitting on the 4th of July!).

Help me out here everyone:  How can it be constitutional for a winery to be able to ship and not a retailer? Isn’t this the exact same principle coming into play, the only difference is the shipment would come from a retailer and not the winery itself?

Steve Heimoff in his blog “Wine suppliers are not the new Mafia provides some good insight into the decision.

Alright .. of course I know the issue: MONEY and MONOPOLY… that’s it in  nutshell.

Forget about underage drinking and tax losses. Both of these can easily be accommodated as they already have in states that allow out of state shipments.

Unfortunately, whenever money and control are at stake there is going to be a struggle.

Hey .. let’s look on the bright side .. the law firms involved will make a mint (no reference to the Federal Reserve intended !

Let’s say its your child’s birthday and you want to purchase a special toy for him/her. You go to your local Toys R Us and they tell you that they don’t carry it in your state, but you can purchase it at a store in another state.

You go home, get on the net and look up the store. You find the toy you are looking for and put it in your shopping cart. You enter your information and hit the “buy” button. Instead of providing you a comfirmation page you get the following message:

“We are sorry but our records show that this toy represents the 13th you have purchased from us over the past year and your state only allows you to purchase one dozen yearly. Please buy from us again after (the date)”.

That’s nonsense, rediculous you say … well not so fast. This is one of the many rules in place or being put in place in many states  where you can purchase as much wine from an in state winery as you would like, but you are limited when purchasing from an out of state winery.

Sound a bit unfair? Or, perhaps do you smell private interest or influence?

Unfortunately since the repeal of Prohibition in 1933, states were given the right to setup their own rules and regulations when it comes to alcohol. Frankly, many of the restrictions made sense at that time based on the illegal activity prevalent during Prohibition and the state of distribution, licensing and administration.

I am sure you have heard the old adage “if it ain’t broke, don’t fix it”. Well here we have a situation where for the wine consumer it is often broken both in terms of cost and choice, but for those involved in distribution monopolies and/or those that have businesses that thrive on the staus quo, it is working  just fine!

One recent example is a new wine shipping law   in Tennessee (Senate Bill 166) that would allow out-of-state wineries to ship up to 3 cases per year if they obtain a $300 non-refundable application fee and then a $150 annual permit fee. Tennesee is not alone in setting fees and limitations on shipments of wine or the size of the winery.

If availability (volume) is the issue, why then isn’t there a limit on in-state purchases from wineries or retailers?

Is the limitation in place to safeguard state revenue? Nope.. Taxes can’t be an issue either since the out-of-state wineries must be licensed.

Alright .. is it access? No not really since the state can mandate that all shipments must be signed for by someone over 21. OK … so perhaps the issue is that the delivery companies don’t have trained drivers? Not likely, most drivers have families to feed and are just as likely as any clerk in a retail outlet to safeguard their jobs.

My point: states are little by little opening up to the 21st century (internet) when it comes to wine sales, but we have an awful long way to go before consumers finally have freedom of choice when it comes to wine purchases, and the “it ain’t broke” crowd are working overtime to ensure it happens as slowly as possible.

There I go .. talkin’ up the grapes again!