Plonk: Wise Move for Small Wineries?
Can plonk be part of a winery’s marketing strategy?
Recently after a full day of tasting (I was observing the 4 Ss of responsible tasting – Swirl, Smell, Sip, Spit), it was time to eat. I wasn’t ready to share a bottle of wine, but still in the mood for a glass with my dinner. Checking the menu at the restaurant, I noticed a “by the glass” offering of a wine from a winery that I had not tried before, but had recently passed by on the 101 making my way North to Paso Robles.
It was their entry level Pinot Noir at $9 a glass. I decided to give it a try. I should have known better! I seldom if ever take a chance on an inexpensive Pinot Noir, aka the “Heartbreak Grape”, known to be a difficult wine grape to grow that needs just the right attention both in the vineyard and in the winery. There were no flaws with the wine such as TCA, Brett or oxidation. However, after one smell and then a sip, I confirmed why I seldom try these wines: in a blind tasting I would never have identified this as Pinot Noir – the color was not Pinot, the smell was not Pinot, and the taste certainly not what one would expect from a Pinot Noir.
That brings me to the subject of this blog: Can plonk be part of a winery’s marketing strategy?
Let me first define “plonk”. According to the FreeDictionary it is “a cheap wine of inferior quality”. This could refer to wines that used poorly farmed fruit and/or were vinified cheaply or poorly. I hesitate to define wines like this since taste is very subjective – one person’s trash is another’s treasure. I have more than once heard someone lavishing a wine that I thought should have been poured in the sink rather than the glass. (BTW.. this in no way diminishes the value of well made wines that are sometimes labeled as “cheap”, but really are good value, nor is this in any way a negative statement against those that use “Plonk” as part of their business name within their marketing strategy.)
So I am narrowing my definition of plonk to mean a wine that displays none or few characteristics of the variety from which it is made. I won’t embarrass wineries by mentioning any by name, but these are typically heavily advertised, high volume, low cost wines that defy detection when tasted as to the variety, region, or vinification method. You will find many of these wines in restaurants selling anywhere from $20 – $35 (usually under $10 retail and perhaps about $5 or less wholesale).
The vast majority of large or very large wineries (defined at 750,000 cases annually and up) offer one or more of these wines. It certainly provides the basis for demand in distribution, enhances brand recognition and steady cash flow from the high volume.
My question is whether this is a marketing strategy that can or should be used by medium and small wineries. Yes….great for brand recognition, but for small wineries that exist primarily due to sales from tasting rooms and wine clubs, I would think this would be disasterous. A small producer (say a few hundred to a few thousand cases) needs to keep its production fully allocated in order to ensure sufficient cash to support continued operations. Competition is fierce with over 7,000 wineries in the US alone.
If a small winery becomes known for “plonk” I can’t imagine it will continue to attract those that invest in one or more wine clubs. These are typically those that have high regard for distinctive, well made wine and the experience they can share at the winery. With so many wine clubs to chose from, offering plonk doesn’t seem right as part of the mix.
What do you think? Can or should small production wineries offer “plonk” as part of their marketing strategy?
UPDATE: To see the results of the brief survey, please click on the “Wine Survey Results: Link on the home page.
CONTENT UPDATE: Some additional evidence that plonk is not a wise move for small wineries…
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Back to basics
It is fascinating to see the revolutionary changes in technology that have occurred over the past twenty years or so including the personal computer, the internet, and social media. All of these have helped to shape new levels of customer interaction, from attracting new customers, to improving product sales, as well as revolutionizing product delivery.
Having worked in the high tech industry for many years, I have seen the dramatic effects in both business to business and business to consumer transactions.
OK .. .where am I going with this? Wine is a product that is sold both business to business and business to consumer. Technology has had tremendous impact on all facets of the industry. But … at the end of the day… it sometimes falls back to the timeless gestures of customer service that shine above the enabling technology.
Here’s some examples of customer service that outshined the technology:
Example 1: Wine Accessories – Soiree Aerator
I was recently searching for a wine aerator. Specifically, I was looking for something that did a great job of aeration, but that also was portable and simple to use. After a search on the web, I settled on the Soiree. Although a bit more expensive than the basic module, I decided to go with the deluxe offering – which included a padded carrying case (it is blown glass so the padded case makes sense). I found it available on Amazon and purchased the unit. When it arrived I was surprised to find that it did not include a drying stand nor an extra gasket as described on the Soiree site. It seemed strange that a Deluxe model would not include the same assessories as included with the basic model.
I sent a brief email to Soiree – “just bought your Soiree Deluxe L/S unit and expected to receive the stand and gasket as described as part of your base model. Is this correct?”
Options: (Possible responses from Soiree customer service….)
1. Don’t respond to the email
2. Respond and confirm .. yes .. sorry we don’t include those
3. OR, and this was the response: … yes we normally don’t include the second gasket..we have improved the unit and now only a universal one is needed, and sorry we normally don’t include the stand although the instructions might need clarification, BUT if you would provide your address we would be delighted to send you a drying stand AND a replacement gasket”
I have received the replacement gaskets and the draining stand.
Lest I forget …. the aerator works just as advertised. Highly recommended!
Thanks to Andrew at Soiree … he has delighted a new customer
Example 2: Lodging – Palazzo Squarcialupi Albergo
I recently enjoyed a vacation in Tuscany (yes… to my dismay back at work:-). Having stayed a few years ago in Castellina in Chianti, I decided to stay again at the Hotel Squarcialupi. On a previous visit I found the hotel to be spacious, very clean, up to date, and the staff to be very helpful and friendly. To my delight… they have gotten better! The hotel is still fully up to date with good sized rooms, modern furnishings, still impeccably
clean and the prices are still very reasonable, and more importantly, the staff -although different personnel, are still very friendly, helpful and make you feel very much at home. Take advantage of the well situated veranda in the back where you can have a glass or a bottle of local wine at very reasonable prices. From advice on what to see, the best restaurants, or directions to nearby wineries or enotecas, Palazzo Squarcialupi is highly recommended (and an excellent value as well). Tell Sabina I sent you!
Example 3: Flash site – Tillsoldout.com
A friend of mine buys several times a year from various flash sites – you know, internet sites that sell wine at substantial discounts – often wines that are not available locally.
Recently he was delighted to find some bottles of a well rated Napa Valley Syrah at substantial discount. He bought and received them as expected and on time.
Opened the first … big smile … great buy as the wine was just as described.
Opened the second … big frown .. the bottle was corked .. undrinkable. His thought.. “OK .. how do I ship it back for credit? Will they credit me?”.
It took one email to Tillsoldout to get an immediate credit without any hassle.
Where do you think he buys his wine from now? Yes … Tillsoldout will continue to get lots of business.
Bottom line, Technology has helped the industry in many ways, starting in the vineyard, through vinification, and signficantly in supporting marketing and sales.
But in the end … common sense and excellent customer service will keep customers coming back over and over.
Read MoreWine Sales Unspoiled -YEA!!…S…!
Making wine is hard work. It may sound glorious, but its really hard work. I know. I’ve made wine and beer on a small scale and you have to love what you do.
Although there are large conglomerates that profit very nicely in the wine industry, this pales compared to the thousands of small vineyards and wineries that make a living from making and selling wine, but work very hard for the money they make. So for these smaller vineyards and wineries there always has to be a fair amount of passion in what they do.
That’s why I am very happy to see that wines in the $15 – $25 dollar range are picking up. Large wineries may have economies of scale to produce wine at lower costs (and often less distinguished character), but small establishments normally cannot make any money at the lower end.
According to MarketWatch, American consumers are embracing wine and are willing to pay a bit more to find that special bottle. Silicon Valley Bank suggests that sales of wine worth $20 a bottle will
grow on average 10% over 2009. So that’s good news for small producers like Eagles Nest Winery in San Diego. This is a great example of winery that has a passion for making the best wine they can and always sharing the experience with anyone willing to help to make the most of each harvest (just wish I lived closer!).
So that’s my YEA!! story. I am happy that these small, quality minded wineries can make up for some of the revenue lost over the last 18 months.
OK … now the S…!
Over the last 18 months I have found some really great bargains! I won’t mention any names, but really good producers who simply had too much wine stuck in distribution, and as a result ended up selling their wine at very discounted prices – to me! I feel guilty, but it has been a blessing in being able to sample many wines that would have been out of reach except for special occasions otherwise.
Well .. .that’s life. The pendulum swings back and forth. And its a good thing.. or I wouldn’t have any decent wine to drink at all.
Read MoreCombining A Passion for Wine With a Grape Experience
Many people have special interests that over time turn into a passion. Sometimes a passion remains pent up and is not acted upon for whatever reason, while other times it is vigorously pursued. Here at ViralVines the passion is wine.. in case you couldn’t tell 
I have followed that passion in many ways over the years – through tastings, reading about wine, making wine, visiting wine regions, having communication with fellow wine enthusiasts, working in the industry, taking the latest quiz on the Wine Hub (let Luiz know I sent you:-), and yes, blogging about wine here on Viralvines too!
So after completing my Intermediate Certification with the Wine Education Trust (WSET) last Spring, I thought it would be beneficial to move on to the Level 3 Advanced Certification. The WSET is a wine education organization located in London with worldwide recognition, and often the starting point for gaining knowledge and pursuing education in the wine industry. Courses can be taken in London or they are offered around the world by local educators with usually a minimum Level 4 Diploma, which is viewed universally as the stepping-stone to the Master of Wine qualification (with only 279 members worldwide).
The Advanced Certification level includes a tasting test as well as multiple choice and short answer and/or essay questions, and
it covers all the major wine producing regions in the world as well as a focus on the production of various spirits.
So for most Mondays since September I have been driving to the train, heading into Backbay, and learning more about wine at the Boston Center for Adult Education.
What did I learn? Well, I’m not the best taster and …..need to keep working at it!
But at least now I can systematically approach each wine and make a better judgement. What else? Lots of facts and figures .. some that frankly are good to know but will likely be forgotten, but many others that will help in both the evaluation as well as the enjoyment of wine.
For example, with properties in Bordeaux the Chateau name is largely a trademark. The owner can increase the size of the property by purchasing vineyard plots anywhere within the same appellation and sell it all under the same name. On the other hand, in Burgundy the name is attached to a plot of land and registered in that town where the size seldom varies. Bordeaux has 60 names under Appellation contrôlée (AC ) while Burgundy has ten times that many even though it has less than half as much land. So why is that of any importance?
The devil is in the details! While in Bordeaux the same team and winemaker will be responsible for all of the
wines from that Chateau (even if multiple labels), in Burgundy the vineyard is seldom a monopole (owned and worked by one person or group), it normally has multiple owners and each owner can and often does make wine in his / her own style. So while in Bordeaux you will find consistency under one or multiple labels from the same chateau, in Burgundy you may find great variance from a bottle that comes from the same piece of land with the same classification, but different producer.
There were some other facts that I learned such as the residual grams of sugar in a brute bottle of champagne or in a bottle of Tokaji Azsu 3 Puttonyos, the temperature at which most sherries are fermented, and why Chile is such an ideal place to grow grapes and make wine. There is also much discussion on the aromas and taste of grapes grown in different regions around the world. Chardonnay for example can taste vastly different based on whether it is grown in cooler or hotter climates, whether or not it undergoes malolactic fermentation, as well as the vessel and length in which it is matured.
What made this all come together was a passoniate and knowledgeable instructor by the name of Adam Chase who leads GrapeExperience in the Boston and San Francisco areas. Grape Experience is a company that offers educational studies to individuals as well as education 
services to businesses. While Adam covered all the material in the book, he also often provided anecdotes to help understand some of the nuances surrounding the growth and adoption of wine in various countries.
For instance, certain cities such as Valparaiso in Chile
, and Cape Town in South Africa grew and prospered simply because they became logical supply points – 
places to rest and resupply – as ships headed from west to east or east to west. Another example was the fall of the Spanish Empire and the migration of Spanish, Italian, French and German settlers into countries such as Argentina, Australia, the USA and Chile, that brought their love of wine and skills with them.
All in all it took a considerable amount of time and effort, but for someone with a passion for wine, it was well worth the time and money. I can now approach my enjoyment of wine with a higher appreciation of what makes a great wine great… or sometimes, not so great.
Don’t know what my next step will be … but I did receive the latest edition of the Wine Atlas by Oz Clark for Christmas. So I guess its time to start reading…. of course with the appropriate glass of wine to coincide with each chapter!
UPDATE: Just received word (March 2010) passed the WSET Advanced Exam with Distinction!
Read MoreWine Conundrum: Consumer vs. Industry
As a frugal consumer I am always on the look out for the best value available for my dollar – whether the purchase is a car, an electronic gadget, or more importantly – a quality bottle of wine! I don’t know about you, but I like to experiment and expand my knowledge whenever possible. I am always looking for that next bottle that really stands out. Not the one that says “OK” but the one that says “wow”! Of course, by the same token, I want it to say “wow” without breaking the bank:-)
Now I suspect that for the most part 2009 will not be remembered with fond memories especially if you were one of the people or one of the wineries, wine distributors or retailers adversely affected by the economic downturn. So finding that quality bottle of wine at a reasonable price point is more relevant than ever.
With that said, I will look back with fond memories regarding some great deals I was able to make during 2009 primarily due to a glut of inventory in the distribution channel. In some cases, wines that normally sell in the $25 range were available for purchase for around $10, while other bargains a result of wine sold and re-branded with a new label.
So did I find a lot of wines with that “wow” factor? After all .. we are speaking about wines that normally sell for over $25 a bottle. To be fair, not all the time. Price in wine does not determine quality or value of and by itself. Good wine simply means it has no defects. Great wine on the other hand means that not only was it free of defects, but in addition it had balance, aromatics and taste that for you as an individual is very attractive. Said another way … wine is somewhat subjective – what is “wow” to one may not be to another. With that said, in several cases the new find was more than memorable – it was great!
But here’s the conundrum: While I take a lot of joy in finding those bargains from a consumer point of view, I am concerned about what the loss of profitability is doing to the wine industry players – to the growers, to the producers, and to general distribution as well.
Unless the costs are decreasing with the price, someone is losing money. Now I am not concerned about the global conglomerates or the huge regional distributors who have to give up a margin point or two. I am concerned primarily with the small family growers who may lose contracts or renew at very low price points or the quality winery that was already working on a shoestring, who may be driven out of business.
I know that in life and business it is survival of the fittest. Natural selection is normal – businesses come and they go. However, I have had the pleasure of meeting or interacting with many small produces who genuinely take tremendous pride in their work and their product. It would clearly be a shame to lose that enthusiasm, not to mention the quality wines that are produced.
So will I strive to pay more per bottle? Not likely. As with the majority of consumers, 2009 emphasized a need to pull in the reigns – search for the best buys and conserve capital. But I am hoping that those most adversely affected will be able to weather the storm. There are already too many players whose main focus is solely or mainly profit, so my concern is with the outfit – be it large or small – that focuses on quality and takes great pride in the product they produce.
Good luck … and let me know how I can help.
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