The investor group's offer is, in my opinion, worth a look if Eberhart can first obtain solid verification that the investors are certified and legitimate. The risk that this investor group is duping foreigners is not insignificant, and I think Eberhart should solicit additional council on top of Ms. Keiko Ohara in order to establish this group's legitimacy or lack thereof.
Secondly, I think it's important for Eberhart to consider alternative strategic investors that could potentially infuse cash into WineInStyle in exchange for a controlling interest. For instance, Suntory has a massive presence in Japan with its Hibiki brand, and they would make a noteworthy strategic investor that could increase WineInStyle's value. (On a similar logical thread, one of Suntory's distributors would also be a strong strategic investor in WineInStyle since it would increase WineInStyle's distributive power).
If no other options are available and Eberhart's desire to spend more time in Palo Alto with his family is very time-sensitive, then I would recommend he sell (given the investor group's legitimacy is robustly confirmed). This move would give support to the current CEO Khoo and allow Eberhart to spend time at home. Furthermore, as mentioned in the case, this cash infusion is critical to supporting growing inventory and staff, and it seems like Eberhart is extremely loath to take further credit solutions (such as Costco's U.S. line of credit) to finance WineInStyle.
Saturday, March 16, 2019
Affirmation of Emerging Regions!
The WSJ recently posted a short article that held some affirmation
for our midterm projects called “The Surprising Resurgence of American Wine.” The piece highlighted three wines from lesser
known domestic regions that have been gaining popularity and some critical acclaim. The three bottles featured wines from regions
– Idaho, Michigan, & Los Angeles – that had thrived before prohibition, but
then fell away and never fully re-emerged after repeal.
The
wine from Idaho was a 2016 red blend dominated by Syrah. The region, a local restaurant owner noted,
is similar in soil and temperature to other Pacific Northwest states, but actually
has the slight advantage that winemakers can be a bit more daring given the
lack of established varietals or techniques.
A citrusy and dry Riesling was the varietal featured from Michigan and
the region’s longer and cooler wine growing season was highlighted as an advantage,
as was the “soul” that can be found in the state. Finally, another Syrah was featured, this one
from LA, an area with a very small number of producers. Locals are hoping more investment in wine in
the region will open up variety and scope.
https://www.wsj.com/articles/the-surprising-resurgence-of-american-wine-11552567264?mod=searchresults&page=1&pos=6
https://www.wsj.com/articles/the-surprising-resurgence-of-american-wine-11552567264?mod=searchresults&page=1&pos=6
WineInStyle
Given the options in the dilemma outlined at the end of the WineInStyle Case, I think Eberhart should sell the business to the new group of Japanese investors. I think the board certainly needs to take a minute and validate that the investors actually are legitimate in order to make sure (1) the existing investors get paid and (2) the company is left in good hands, but assuming those checks come back positive, I believe its time to let go.
First and foremost, it seems like it’s time for Eberhart to finally cash out and move on to the next phase of his life. He has spent 9+ years building a successful business and he should now take the opportunity to cash out instead of pushing the business into the risky position of chasing growth without the capital needed for that growth. Second, given the capital needs of the business over the last few years and the capital required to continue expanding staff and inventory for growth, selling seems to be best for the long-term interests of the business, its customers, and its partners. It is unfortunate that things will not work out as well for Khoo, but he will likely be fine and there are other stakeholders Eberhart must consider. Finally, Eberhart needs to get back to his family! It seems things have been better since stepping down as CEO, but he will never be 100% when he has a huge investment and his legacy still in Japan. Time to sell!
Brasswood Winery: Driving Millennial Engagement
We’ve talked a whole lot in this class about how the wine industry can better drive engagement with millennials, with improved tasting room experiences being one those channels. In class and on this blog, Scribe Winery in Sonoma has come up as an example of a brand that is doing a good job along this experiential dimension by not trying too hard while focusing on the physical beauty of their property and relying on exclusivity to drive desirability. The brand has been doing well among the younger demographic, but I would argue that their strategy for experiences is not the only way forward and I would hold out Brasswood Winery as an example of millennial frontrunner doing it their own way.
Brasswood is a relatively new winemaker with a recently renovated facility in St. Helena. Their property is small, but the space is incredibly well designed and beautiful with sleek, modern interiors. When it comes to visitors, the winery is all about pushing novel and memorable experiences that engage and delight customers. Options range from tastings in the winery’s spacious, barnlike art gallery (recently featuring 100% Dali works) to casual group get-to-togethers in the space’s private, firelit Winemaker’s Den to “full” sensory experiences that weave wine together with other items that share flavor profiles and smells. These experiences sound a bit over the top when you first read them, but the team doesn’t take themselves too seriously and they do an outstanding job providing real connection to the winery and the people while driving a totally unique visit. They create experiences that are Instagramable immediately and that keep you talking and recommending for weeks. Brasswood is certainly trying to get millennials engaged and I think they are on to something
Deline in Style
[Wine in Style Follow-up]
If I were Eberhardt, I would decline the offer from the new investors.
From the very beginning of his California wine export business, Eberhardt has struck me as an incredibly thoughtful businessman. Even in the selection process, the granularity of his decision making — “23 industries…market growth rates, competitors, market structure, and other notes pertinent to the strategic outlook of each industry” — was incredible. In addition, he seems to be a man of great moral and ethical character, as seen by Eberhardt not taking a salary until 2005, when the company began to make money.
And so, accepting his funding simply because WineInStyle is facing another cash crunch seems to be wrong decision. The team and business have already surpassed so many hurdles — from sourcing California wineries, dealing with cross-border legal difficulties, and obtaining licensing in a grey area. Moreover, Eberhardt, even as a foreigner, was able to thoughtfully identify and capitalize on the key purchasing patterns of Japanese consumers. This level of grit gives me hope that the team can find another solution.
In addition, it appears likely that similar cash crunches will continue to appear in the upcoming years. Ever since Khoo has taken over, there have been financial challenges in 2006 and 2007. Given this cash crunch history, the likelihood of future financial troubles seems high — which means that accepting the funding now could still lead to the need for even more future funding. The case also highlights “Khoo’s success in sales,” and yet, “the growth in headcount greatly increased the overhead at WineInStyle’s headquarters.” These two comments in tandem surface the potential for greater operational efficiency.
As difficult as it might be, I would advise Eberhardt to focus on two other, possible alternatives. (1) More efficient operations by cutting expenses or (2) Finding alternate investors who have trustworthy public records, so that Eberhardt can continue to see his vision for WineInStyle through.
LA's year-round sparkling season (wtf is Lambrusco?)
At a bachelorette in Los Angeles a week ago all of the women were drinking Lambrusco and Pét-Nat the entire weekend. Day one I asked them, "wtf is Lambrusco?!" Clearly I am not up with the times as they stared back in disbelief. Lambrusco is a chilled, sparkling red wine and Pét-Nat, orange.
At first, I thought it was a friend group anomaly; maybe the bride loved these wines and thus network effects kicked in with the entire crew. However, every brunch/dinner restaurant and bar we went to had variations of Lambrusco cocktails. Maybe it's a sissy LA palate trend, but this year-round sparkling season city is adopting a new obsession that we should take note of as wine-trepreneurs. Sparkling rose is not enough these days.
Lambrusco hails from the Emilia-Romagna region and made from its namesake red grape. It was cast aside by wine enthusiasts in the 80s because of the cheap, fizzy varietals that took over the U.S. Lambrusco is making a huge comeback now though and more premium ones today are dry, crisp, and delicious.
Bon-Appetit describes Pét-Nat (pétillant naturel) as champagne's "cool kid sister...the bubbly you want to party with". It is created from white and red grapes and made by taking still-fermenting/unfinished wine, bottling and capping it, and allowing it to complete fermentation in the bottle. Winemakers describe it as "Russian roulette," because you can never quite predict how the taste will be.
If you're looking for a fun way to mix up your bubble routine - check these out!
Pet-Nat: https://www.bonappetit.com/drinks/wine/article/pet-nat-wine
Lambrusco: https://www.winemag.com/2017/10/18/its-time-to-take-a-fresh-look-at-lambrusco/
At first, I thought it was a friend group anomaly; maybe the bride loved these wines and thus network effects kicked in with the entire crew. However, every brunch/dinner restaurant and bar we went to had variations of Lambrusco cocktails. Maybe it's a sissy LA palate trend, but this year-round sparkling season city is adopting a new obsession that we should take note of as wine-trepreneurs. Sparkling rose is not enough these days.
Lambrusco hails from the Emilia-Romagna region and made from its namesake red grape. It was cast aside by wine enthusiasts in the 80s because of the cheap, fizzy varietals that took over the U.S. Lambrusco is making a huge comeback now though and more premium ones today are dry, crisp, and delicious.
Bon-Appetit describes Pét-Nat (pétillant naturel) as champagne's "cool kid sister...the bubbly you want to party with". It is created from white and red grapes and made by taking still-fermenting/unfinished wine, bottling and capping it, and allowing it to complete fermentation in the bottle. Winemakers describe it as "Russian roulette," because you can never quite predict how the taste will be.
If you're looking for a fun way to mix up your bubble routine - check these out!
Pet-Nat: https://www.bonappetit.com/drinks/wine/article/pet-nat-wine
Lambrusco: https://www.winemag.com/2017/10/18/its-time-to-take-a-fresh-look-at-lambrusco/
My wine edutainment with Gary Vaynerchuk
I worked the 2011 summer and also part-time throughout my senior year of NYU at an education or "edutainment" start-up called Veri that was part of the first ever Tech Stars cohort in New York. The product aimed to create engaging courses for adults with a "reversed" learning pedagogy: you would answer a question about a topic first and if you got it wrong you were presented with a snippet of content from a blog, video, etc. that taught you the specific info, and then move on to the next question.
My first job was building courses across different verticals to test which ones users engaged with the most and enjoyed learning on our platform. Gary Vaynerchuk (of our Cork'd case) was actually a seed investor and advisor to our team and, go figure, at his suggestion one of the verticals I built out was wine education! I can attest that he is quite the character. I created a couple of courses on the basics of French and Italian wines. These were some of our most popular courses, as people felt they were digestible and the knowledge was immediately applicable in their lives offline - impressing friends at parties and feeling more confident when ordering. Unfortunately, Veri pivoted though and yet another wine ed product was lost to the startup graveyard.
I'm amazed that 8 years later, with continued demand and product experimentation, there still isn't a solid/winning wine education site or app. I would make a bet that the most successful experience will end up living on a broader life-long learning platform, with a wine vertical such as the one we had at Veri, because the company will have the resources to create an overall incredible learning experience.
My first job was building courses across different verticals to test which ones users engaged with the most and enjoyed learning on our platform. Gary Vaynerchuk (of our Cork'd case) was actually a seed investor and advisor to our team and, go figure, at his suggestion one of the verticals I built out was wine education! I can attest that he is quite the character. I created a couple of courses on the basics of French and Italian wines. These were some of our most popular courses, as people felt they were digestible and the knowledge was immediately applicable in their lives offline - impressing friends at parties and feeling more confident when ordering. Unfortunately, Veri pivoted though and yet another wine ed product was lost to the startup graveyard.
I'm amazed that 8 years later, with continued demand and product experimentation, there still isn't a solid/winning wine education site or app. I would make a bet that the most successful experience will end up living on a broader life-long learning platform, with a wine vertical such as the one we had at Veri, because the company will have the resources to create an overall incredible learning experience.
A Wine Importer for the People: Kermitt Lynch
One
of our guest speakers mentioned she trusts any bottle imported by Kermitt
Lynch, and lo and behold, I noticed his name on the back of the $15 Domaine de
Fontsainte rose that we'd brought back from a local Oakland wine shop.
So who is
Kermit Lynch? Lynch has a wine shop in Berkeley and imports only from small,
family-owned estates in Italy and France that use traditional winemaking
methods. He has 150 producers in his stable, and estimates that he adds one
producer to his portfolio for every 100 that he visits. Though not a staunch
advocate of natural or biodynamic wines, he was one of the first to champion
techniques used in natural winemaking, e.g., no filtration. Most importantly
for us, the majority of his portfolio is under $25 per bottle retail.
What's his
wine of choice? "Fresh, young whites - I'm on a Vermentino kick," he
says.
Sources:
Wines on the Wing
I was on a flight just a couple of hours ago from SFO to Incheon, South Korea. One thing that struck me was the number of available wines. Was this case for all international flights? Or was this only the case for Asiana Airlines?
One record indicates that Asiana serves nine kinds of wines for first class passengers, fourteen for business class, and four for economy class passengers. In addition to the number of options, the wine selection process is also extensive. The airline hires three international sommeliers — Andreas Larsson of Sweden, Evangelos Pattas of Belgium and Christine Balais of France. They begin by sampling the in-flight meals, then blind taste 300 wines, and finally narrow down the options to 25 choices. These choices are then approved by Asiana’s executive Vice President. In recent years (2008 to be precise), there was also flight attendant who received sommelier certification in Bordeaux and has played a role in Asiana Airlines' wine selection.
It turns out this emphasis on wine is not just limited to Asiana Airlines. There are competitions for airlines serving wines. U.S. Global Traveler’s magazine hosts an event called “Wines on the Wing” where airlines submit five wines - two reds, two whites, and one sparkling/champagne. 2017 was the 13th annual competition, and awards are given out after a blind tasting of the wine being served on international first and business flights throughout the world.
For Asiana, however, their wine selection appears to be part of a broader marketing strategy. One of the taglines for their business smartium flights is, “we offer wines selected by top international sommeliers to match our in flight meals.” Similarly, an Asiana executive Vice President, Ja-Joon Goo is quoted as saying "At Asiana we strive to provide our passengers with the best quality of flight and comfort, and that philosophy translates down to the fine details such as the wine we feature on our flights.” Quite fitting, given that even the Asiana Airlines stewardesses will kneel so that they can speak at eye-to-eye level with passengers.
But not to be swept away, someone has always told me a true test of where someone’s values are is seeing where they spend time and money. Quite consistent with the marketing content, Asiana also spends a lot on alcohol. Every year, they "open 2,400 bottles of Champagne; 4,400 bottles of red wine; and 2,000 bottles of white in first class; and 34,000 bottles of Champagne; 83,000 bottles of red wine; and 48,000 bottles of white wine in business class, for a total cost in excess of $2.1 million."
Sources:
Wine tasting experience for Millennials
One of the key learnings of the class for me (and many) was how to engage the growing millennial segment. I was surprised to hear classmates probe guest speakers on how wineries were adapting to a world where millennials visit only a couple of wineries and spend most time in AirBnBs during a weekend trip. In Australia, we would book an AirBnB or hotel but spend most of our time wine tasting. We would visit over 5 wineries per day. During each visit, we would typically enter the cellar door where the bartender or wine maker had a line up of glasses. We would do the tastings in the normal, and I guess traditional, way. The bar person would explain the story of the winery and each wine. A big part of this could be because tastings are mostly free in Australia, albeit with social pressure to buy a bottle afterwards.
I'm currently in Paso Robles, a 3 hour drive south of Palo Alto. It's interesting to see how vineyards are trying to cater to millennials. One winery, Sculpterra, had vast rows of pinot noir, cabernet sauvignon and other red varietal vines. It also had large metal and bronze sculptures of different animals surrounding the cellar door. On one side outside the tasting rooms were large (1 story high) panels displaying paintings and photos of the history of Californian wine. There was also a large courtyard with a bocce court, a ping pong table, a mini food market, and a large stage for live performances where musicians were setting up. In the next vineyard, our tasting centered on sparkling wine. They were also setting up for an 850 person Rick Springfield concert. My group is having a great time but unfortunately did not play any of the games, look too closely at the art (except the sculptures), or go to the concert. Interestingly, we seemed to be more interested in enjoying each others' company and occasionally hearing the stories of the vineyards.
I'm currently in Paso Robles, a 3 hour drive south of Palo Alto. It's interesting to see how vineyards are trying to cater to millennials. One winery, Sculpterra, had vast rows of pinot noir, cabernet sauvignon and other red varietal vines. It also had large metal and bronze sculptures of different animals surrounding the cellar door. On one side outside the tasting rooms were large (1 story high) panels displaying paintings and photos of the history of Californian wine. There was also a large courtyard with a bocce court, a ping pong table, a mini food market, and a large stage for live performances where musicians were setting up. In the next vineyard, our tasting centered on sparkling wine. They were also setting up for an 850 person Rick Springfield concert. My group is having a great time but unfortunately did not play any of the games, look too closely at the art (except the sculptures), or go to the concert. Interestingly, we seemed to be more interested in enjoying each others' company and occasionally hearing the stories of the vineyards.
The most important channel for wine sales? Grocery Stores
One of the most puzzling facts we learned in this class is that 90%+ of wine purchases are consumed within 24 hours of the purchase. This suggests most sales are still in-person, and made me wonder: where are people buying their wine? Turns out grocery and liquor stores still dominate.
(Source)
So who's winning in online? There were $1.7B of online alcohol sales in 2017. What's notable is that brick and mortar leaders Total Wine and BevMo own 25% of the online alcohol market, too. It will be interesting to see whether deeper pushes into online grocery from food merchants like Fresh Direct or Safeway can steal more of the alcohol market too, especially given the strong association of wine with food.
(Source)
Can cannabis competitors steal share of beverage buzz?
Wendy Berger gave us
an interesting lead on cannabis-infused beverages as a growth area, a nice
middle ground between the immediate high of smoking and the delayed onset of
edibles. I was curious about what's available out there now and what the
technical challenges are in production.
Beverages are
currently 6% of edibles sold now, and one analyst at Canaccord Genuity thinks
it could be estimated market of $600M by 2022, split roughly 40/60 between CBD-
and THC-based (source).
Problems:
- Hemp oil's grassy flavor is hard to mask
- Cannabinoids (e.g., THC) are oils in their natural form and don't mix with water, so getting a well-mixed gulp requires frequent shaking
- Texture and look of infused drinks tends to be murky or opaque
Interesting
products:
- Nano-emulsion processes that can break cannabinoids into smaller particles, and mixing them into water-based liquids using surfactant chemicals - but surfactants themselves taste soapy
- Cannabis-infused syrups and sweeteners
Some leading
CBD-infused drinks:
Love Wine
“Love wine.” That is how I’ve always known Calon Segur. Every Valentine’s Da, I’ll see my parents, or maybe their friends, posting about this magical “love wine” on Instagram.
Turns out there is a lot more history to this“love wine.”
The name “Calon Segur” comes from two owners. The first owner, Monseigneur de Calon, who was an important bishop back in 1147. (Though some people say that “Calon” comes from “Calones” which was a name for transport vessels in the Gironde estuary.) And then, “Segur” from Nicolas Alexandre de Segur.
The famous “heart” on the label apparently also comes from Marquis Nicolas-Alexandre, who also owned Chateau Latour and Chateau Lafite and famously said — “I make wine at Lafite and Latour but my heart is at Calon Segur.”
I guess my parents were on to something when they referred to Calon Segur as love wine.
Today, the winery is owned by an insurance company after being sold for 170 million euros in 2012. The winery has since gone through a renovation, with stainless steel tanks, a new skylight-lit tasting room, and even vine replanting with more Cabernet Sauvignon grapes. And yet, according to reviewers, the winery is difficult to find as the previous owner did not like visitors.
Other changes I found interesting were that Calon Segur is now aged in newer oak barrels (90% new oak barrels rather than 50%) and for longer periods of time (up to 20 months, rather than 12 to 18 months). But given the tannins within the wine, most recommend leaving Calon Segur in bottle for 2 decades. The newest owners have also changed the style of the grapes, beginning in 2014 — “softer, lusher, riper, more forward and refined” rather than “masculine, sturdy, tannic, structured, and traditional.”
I’m looking forward to the newer vintages, given that I would describe the few tastes of Calon Segur I’ve had with the words - pungent, hay, manure, leather. Another Vivino reviewer captured my sentiment much more succinctly - “barnyard at the beginning.”
And until I start earning an income again, I’m excited to see if I can try the second and third labels — Marquis de Calon Segur, and Chapelle de Calon (or also sometimes, St. Estephe de Calon Segur).
Sources:
The Singularity
Will the machines of the future drink wine? When mankind has been eclipsed by the supercomputers we create and those supercomputers in effect create new supercomputers more power than themselves, will those machines imbibe?
Drinking alcohol is not a pursuit solely performed by humans. Monkeys and other animals ingest fermented fruit that is essentially alcohol. Koalas get buzzed on eucalyptus. However, will the more intelligent forms of "life" which follow us have the same desires for a buzz and camaraderie? If they are too have superior intelligence, and intelligence is not just the ability to crunch algorithms, but also the ability to feel emotions, then the answer seems to be yes. However, if intelligence is just those abilities that we associate to already be in place in modern computers, wine appears to be headed for extinction in the event of a technological singularity.
However, what if the buzz in the future supercomputers is generated through a different means than existing mechanisms? What if the wine, cannabis, and other forms of buzz generation have attributes that the supercomputers will parse out and use to create a super buzz mechanism, with a form factor unlike that we currently manifested by a colored liquid in a glass? What if the wine looseness is coupled with cannabis' ability to largely negate hangovers? If so, I'm looking forward to the singularity.
Drinking alcohol is not a pursuit solely performed by humans. Monkeys and other animals ingest fermented fruit that is essentially alcohol. Koalas get buzzed on eucalyptus. However, will the more intelligent forms of "life" which follow us have the same desires for a buzz and camaraderie? If they are too have superior intelligence, and intelligence is not just the ability to crunch algorithms, but also the ability to feel emotions, then the answer seems to be yes. However, if intelligence is just those abilities that we associate to already be in place in modern computers, wine appears to be headed for extinction in the event of a technological singularity.
However, what if the buzz in the future supercomputers is generated through a different means than existing mechanisms? What if the wine, cannabis, and other forms of buzz generation have attributes that the supercomputers will parse out and use to create a super buzz mechanism, with a form factor unlike that we currently manifested by a colored liquid in a glass? What if the wine looseness is coupled with cannabis' ability to largely negate hangovers? If so, I'm looking forward to the singularity.
My Wine Tastes
Before taking this class, I will have to admit, I had a pretty undeveloped palate. I would be lying if I said that I could actually tell the difference between two buck chuck and a Latour. Yet, over the past two months, I have been exposed to so many different varietals of good wine, that I had a hard time swallowing down the selection from Trader Joe's. Just as my aspirations and dreams have been elevated at the GSB, so has my wine taste. It seems only fitting that while I was content with running a lifestyle business before the GSB, I now know that I want to build out a meaningful software company that truly fixes many of the problems of the current US healthcare system. I could have guessed that the GSB would change my attitudes about my business goals, but I could not have guessed that it would have shifted my wine goals. Just as the GSB has helped me realize the business the activities I truly enjoy (growing a company, sales and marketing, financial analysis), this class has made me realize the wine I like. Before this class, I mainly stuck to Italian wine because I had discovered it on a trip to Tuscany with my dad. Yet, I realized over the quarter, that I actually truly enjoy the "jammy" taste of a Cab Sauv. Leave it to GSB to change my life by changing my wine taste.
WineInStyle
While I am concerned about the credentials of the buyers, I think the best course of action for Eberhart is to sell. Although I am confident that he could find the fix for the cash flow issues, his priorities seem to be shifting towards his family. I think he should look with pride on the business he built, but he also needs to acknowledge the current state of the team. While Khoo is clearly a talented salesman, he is short on financial skills. The company clearly needs to fix its net working capital situation. The recent situation where Costco had to lend the company cash to finance its own large order underscores this reality. Since Eberhart is the executive most equipped to fix this issue, under the current regime, he cannot responsibly step away. Yet, if he sells WineInStyle to a financial buyer, it is safe to assume that they will have the expertise to fix this issue. This assumption is much more likely than a financial buyer having the industry know how or sales expertise that Khoo provides. Therefore, in order to provide himself liquidity, and to ensure the long term existence of WineInStyle, I recommend that Eberhart sell the company.
How to make wine making more sustainable?
Besides organic and biodynamic wine, there are more innovative
ways to make wine making sustainable. Taking a look at the recommended readings
from Vinography.com, I found an article with 3 interesting practices for
sustainability in wine. These practices are: “living building” tasting room,
dry farming and no-till agriculture.
Here is a link to the article: https://daily.sevenfifty.com/the-next-wave-of-sustainability-in-wine/.
The following quotes summarize each of the practices.
A “Living Building” Tasting Room
“The most rigorous standard for green buildings in the
world, the Living Building Challenge (LBC) was formulated by the Seattle-based
International Living Future Institute (ILFI) in 2006. It’s designed around
seven performance areas, referred to as petals. Unlike other certifiers of
green buildings, the ILFI won’t certify a building until a full year after it’s
completed. That’s because some of the building’s petals—namely, energy and
water—require 12 months of continuous occupancy before they can be shown to
work in accordance with the challenge. The Energy Petal requires that the
building produce 10 percent more energy than it consumes; the Water Petal
requires (among other things) that 100 percent of the project’s water needs be
supplied by captured precipitation or other natural closed-loop water systems.”
Dry Farming
"After the recent six-year-long drought in California, water
conservation is on the minds of many farmers in the West, including growers of
wine grapes. As a result, the Old World practice of dry farming is making a
comeback. Why irrigate vineyards if you don’t need to—and if dry farming
creates better-tasting wines (as its advocates claim)?"
No-Till Agriculture
"Healthy soil is full of microorganisms and mycorrhizae,
which are essential for the health of your crop and which are disturbed when
you till. When you refrain from tilling, not only are you preserving the soil’s
rich biodiversity but you’re sequestering carbon and preventing erosion. Another
benefit of using the no-till approach and then planting cover crops is that the
soil becomes better able to retain moisture."
Wine Etiquette: An Example of What Not to Do
I thought I might share an amusing wine-related story to add some comic relief during finals week. Back in college, the family of one of my friends was generous enough to host a few of us at their ski cabin for a long weekend. Not only did they provide us lodging, but they also provided great food and even better wine. However, one particular dinner provided a life lesson about when it might be prudent to keep some wine knowledge to yourself. As we sat down for dinner, the father brought out what must have been a $100+ bottle of white wine and rhetorically asked us if that would be suitable to pair with dinner. One of my classmates quickly responded that he prefers red and added that a red wine would pair much better with our meal. As Alder Yarrow mentioned in class, traditional perceptions of wine / food pairings may be misguided, so for all we know the white wine may have made an excellent pairing. Regardless, it may have been better just to accept the white wine and not look a gift horse in the mouth.
However, always the gracious host, the father dug through the kitchen to find a red wine to add to the feast. When he returned with the bottle of red, the same classmate inspected the bottle and said "you know, you can tell how good a wine is by looking at the size of the punt," as he presented the nonexistent punt on the bottle of red to the table (ignoring the fact that marketing strategies that go into the presentation of a wine bottle may not necessarily correlate with wine quality), followed unsurprisingly by an extend awkward silence.
However, always the gracious host, the father dug through the kitchen to find a red wine to add to the feast. When he returned with the bottle of red, the same classmate inspected the bottle and said "you know, you can tell how good a wine is by looking at the size of the punt," as he presented the nonexistent punt on the bottle of red to the table (ignoring the fact that marketing strategies that go into the presentation of a wine bottle may not necessarily correlate with wine quality), followed unsurprisingly by an extend awkward silence.
Funky Forgotten Fogarty
My friend (and our classmate) Morgan came over last week to a dinner I hosted with a bottle of 1998 Thomas Fogarty Chardonnay Blanc de Blanc Late Disgorged as a gift. She had just visited the winery and tasted this sparkling wine, saw it was only ~$28 and inquired why the cost was so low for that vintage. Turns out our favorite riddlers (shout out team Ridley) "forgot" about the bottles and they were rediscovered a few years ago and finally put on sale. (What intern got fired after this incident...?)
This extra time underground without any riddling caused the wine to develop a verryyyy funky taste and color, but it is now a novel drinking experience. I actually enjoyed it a lot! The wine has a bit of a cider-y taste to it.
It's also hilarious to note how Fogarty tried to pass off the accident as an intentional winemaking decision and market it as such, as noted in their description:
"Fermented in tank and then transferred to barrel for malolactic fermentation to soften the fruit's intense acidity, this was then bottled and left "en tirage" for nine years. This extra time in bottle and on the leese tamed the initial razor sharp acidity, producing a sparkler that is wonderfully complex and flaxen-hued."
Check it out! :
https://www.klwines.com/Products/i?i=1066330
This extra time underground without any riddling caused the wine to develop a verryyyy funky taste and color, but it is now a novel drinking experience. I actually enjoyed it a lot! The wine has a bit of a cider-y taste to it.
It's also hilarious to note how Fogarty tried to pass off the accident as an intentional winemaking decision and market it as such, as noted in their description:
"Fermented in tank and then transferred to barrel for malolactic fermentation to soften the fruit's intense acidity, this was then bottled and left "en tirage" for nine years. This extra time in bottle and on the leese tamed the initial razor sharp acidity, producing a sparkler that is wonderfully complex and flaxen-hued."
Check it out! :
https://www.klwines.com/Products/i?i=1066330
Coravin Convert
My parents bought me a Coravin for Christmas, an appliance that allows you to tap into a bottle of wine through the cork via a needle and pour a single glass, preserving the bottle up to weeks or even months. Initially, I thought I would shove this device in the back corners of my kitchen as yet another superfluous appliance. I absolutely LOVE this thing now though.
When I'm not FOAMing or BPLing, I like to have one nice glass of wine here and there throughout the week, but I constantly have to think through the following four days and consider if I have a hang with a friend coming up when we can finish the bottle. Or I'll often be that person coming to a dinner party with a half-drank bottle of nicer wine so that it doesn't go to waste!
This kind of unpredictable wine drinking routine causes me to keep cheaper bottles of wine on hand that I don't feel guilty about not finishing if I open up for one glass. The Coravin is already changing my purchasing behavior - I've been more inclined to invest in more expensive wines because I now have flexibility in consuming it. I imagine this will be the case for a huge portion of the wine drinking market and change sales trends for premium end wines. Genius invention.
Buy yours now!!! Or come hang out at my house and drink wine with me so that I don't even need to use it ;)
When I'm not FOAMing or BPLing, I like to have one nice glass of wine here and there throughout the week, but I constantly have to think through the following four days and consider if I have a hang with a friend coming up when we can finish the bottle. Or I'll often be that person coming to a dinner party with a half-drank bottle of nicer wine so that it doesn't go to waste!
This kind of unpredictable wine drinking routine causes me to keep cheaper bottles of wine on hand that I don't feel guilty about not finishing if I open up for one glass. The Coravin is already changing my purchasing behavior - I've been more inclined to invest in more expensive wines because I now have flexibility in consuming it. I imagine this will be the case for a huge portion of the wine drinking market and change sales trends for premium end wines. Genius invention.
Buy yours now!!! Or come hang out at my house and drink wine with me so that I don't even need to use it ;)
Drinking and Flying
A comment by Alyssa piqued my interest, last class. She mentioned that, in spite (or maybe because) of her love of wine, she stays away from in-flight wine lists, unless it's an absolute emergency.
Since many of us will be traveling these upcoming weeks, I decided to do some research on Airline´s wine lists, how they are crafted and why they are considered to be so bad.
If anything I wish to give you guys an idea of what airlines to trust or what wines to reach for if a wine emergency were to come up in your upcoming travels.
First, a little on logistic hurdles. Most airlines will need to work with large volumes, and in wine large volumes generally, are related to lower quality wines. Additionally, there are other concerns like maintaining wine at an adequate pouring temperature and providing the correct glassware (Gabriel Glas should get in on this!), or the inability to properly decant wine. Furthermore, some wine specialists note that our tasting capabilities are modified as consumers while we are flying: we taste more tannins in red wine and greater acidity on whites, and this is something airline supply buyers must keep in mind while choosing wine.
So I leave you with a List of Airlines with the Best Wine Lists, as determined by Condé Nast. I found this to be the most comprehensive list and it mentioned all of the airlines I found in other articles. It also has an added explanation on how they source their wine and what made them earn a particular spot on the list. It even gives a few suggestions of what they believe the best wines are on each list.
If you are lucky you might find yourself in some of their flights soon! Surprisingly American Airlines found a way to a top ranking, yet I was saddened to not see Aeromexico even mentioned in any article I found online - I will have to stick to sparkling water on my upcoming trip then!
https://www.cntraveler.com/stories/2015-09-21/the-airlines-with-the-best-wine-lists-emirates-singapore-etihad
Since many of us will be traveling these upcoming weeks, I decided to do some research on Airline´s wine lists, how they are crafted and why they are considered to be so bad.
If anything I wish to give you guys an idea of what airlines to trust or what wines to reach for if a wine emergency were to come up in your upcoming travels.
First, a little on logistic hurdles. Most airlines will need to work with large volumes, and in wine large volumes generally, are related to lower quality wines. Additionally, there are other concerns like maintaining wine at an adequate pouring temperature and providing the correct glassware (Gabriel Glas should get in on this!), or the inability to properly decant wine. Furthermore, some wine specialists note that our tasting capabilities are modified as consumers while we are flying: we taste more tannins in red wine and greater acidity on whites, and this is something airline supply buyers must keep in mind while choosing wine.
So I leave you with a List of Airlines with the Best Wine Lists, as determined by Condé Nast. I found this to be the most comprehensive list and it mentioned all of the airlines I found in other articles. It also has an added explanation on how they source their wine and what made them earn a particular spot on the list. It even gives a few suggestions of what they believe the best wines are on each list.
If you are lucky you might find yourself in some of their flights soon! Surprisingly American Airlines found a way to a top ranking, yet I was saddened to not see Aeromexico even mentioned in any article I found online - I will have to stick to sparkling water on my upcoming trip then!
https://www.cntraveler.com/stories/2015-09-21/the-airlines-with-the-best-wine-lists-emirates-singapore-etihad
The Farm Winery - a GSB Brand
If any of you have had the luck of taking Base Accounting with Becky Lester you have probably heard about "The Farm Winery". It's a winery founded by Santiago Achaval, a world-renowned wine-maker with 3 of his classmates (one of them his wife) from the GSB.
The brand makes a nod to the GSB, the place where the founders met and developed their interest in wine. While none of the wines is specifically named after the GSB or Stanford (branding issues) The Farm is a reference to our school, and all of their names are related to the GSB.
Some of the names include "LPF", "The Big Game" and "The Dish". My personal favorite is "Touchy- Feely", a blend of Grenache and Syrah they describe as "wine lighter than air; it elevates".
The wines are a little bit pricier than at least my regular dinner wine, but I believe every GSBer should try at least once, if only for the nostalgia.
You can become a member here:https://thefarmwinery.vinespring.com/register
And learn a little bit more about the brand and winery here: http://www.thefarmwinery.com/
The brand makes a nod to the GSB, the place where the founders met and developed their interest in wine. While none of the wines is specifically named after the GSB or Stanford (branding issues) The Farm is a reference to our school, and all of their names are related to the GSB.
Some of the names include "LPF", "The Big Game" and "The Dish". My personal favorite is "Touchy- Feely", a blend of Grenache and Syrah they describe as "wine lighter than air; it elevates".
The wines are a little bit pricier than at least my regular dinner wine, but I believe every GSBer should try at least once, if only for the nostalgia.
You can become a member here:https://thefarmwinery.vinespring.com/register
And learn a little bit more about the brand and winery here: http://www.thefarmwinery.com/
Gateway Wines - Myth or reality?
While doing research on wines and finding inspiration for new blogs I ran multiple times into the idea of Gateway wines - wines for people who have little experience with wine. The idea is that these wines will help develop a taste for the category and eventually push drinkers to trade up to higher quality products. This seems to be an established thought - yet I wonder how successful and accurate this actually is. How many wine drinkers in the US approach their wine drinking as an educational process, one where they look for ways to expand their palate and explore new tastes? My guess would be that not so many.
For every first-time wine drinker that comes to the category with hopes of learning more about the grapes, the region, the terroir and different taste profiles of wine, I would argue there are at least ten that buy wine with the sole intent of crossing out a line item in their grocery list. For them, wine is nothing more than an item of consumption, and they have found the type, brand, and flavor that they like. They are not interested in becoming wine connoisseurs, they just want to enjoy the familiar taste they have accustomed to pairing with their everyday Sunday dinner.
Most of us in this class, if not all, fall within the first category. We took the class because we are ready to either begin or continue our education in Wine. But I would argue that most Americans don´t see wine the same way. It is food for thought to think about what we are truly saying about these wines when we call them "gateway" wines. We are saying they are not really good enough - only satisfactory for an uneducated palate. But I think this adds to the mystique and fear a lot of us have when approaching wine. It tells the story that there is a right way to drink and taste wine and a wrong way to do so.
A quote from Eric Asimov on the subject really struck a chord with me "It all reminded me that we are not simply talking about wine — an ancient beverage that people enjoy — but something deeper and closer to the core of people’s ideas about themselves and their character."
While this way of thinking about wine and its value is definitely beneficial to premium wineries and a certain type of wine drinkers, I wonder whether the implications for the Industry as a whole are a lot less positive. It might help instill the insecurity some of us feel when talking about or tasting wine, and might be pushing a lot of potential clients from the wine aisle into the spirits or beer aisles. And the wine Industry is probably worse off because of it.
For every first-time wine drinker that comes to the category with hopes of learning more about the grapes, the region, the terroir and different taste profiles of wine, I would argue there are at least ten that buy wine with the sole intent of crossing out a line item in their grocery list. For them, wine is nothing more than an item of consumption, and they have found the type, brand, and flavor that they like. They are not interested in becoming wine connoisseurs, they just want to enjoy the familiar taste they have accustomed to pairing with their everyday Sunday dinner.
Most of us in this class, if not all, fall within the first category. We took the class because we are ready to either begin or continue our education in Wine. But I would argue that most Americans don´t see wine the same way. It is food for thought to think about what we are truly saying about these wines when we call them "gateway" wines. We are saying they are not really good enough - only satisfactory for an uneducated palate. But I think this adds to the mystique and fear a lot of us have when approaching wine. It tells the story that there is a right way to drink and taste wine and a wrong way to do so.
A quote from Eric Asimov on the subject really struck a chord with me "It all reminded me that we are not simply talking about wine — an ancient beverage that people enjoy — but something deeper and closer to the core of people’s ideas about themselves and their character."
While this way of thinking about wine and its value is definitely beneficial to premium wineries and a certain type of wine drinkers, I wonder whether the implications for the Industry as a whole are a lot less positive. It might help instill the insecurity some of us feel when talking about or tasting wine, and might be pushing a lot of potential clients from the wine aisle into the spirits or beer aisles. And the wine Industry is probably worse off because of it.
Chinese Snake Wine
My mom is a die-hard Sauvignon Blanc drinker and for the past 10 years she has exclusively drank Kim Crawford SB, with an occasional Sancerre thrown in depending on availability. Imagine her surprise when my brother took her and my dad on a 2-week trip to China in 2011 (after he lived in Beijing for a year). Little to no wine to be found outside of Beijing and Shanghai, and certainly no white wine! I still hear her "horror" stories about this experience to this day.
Our class discussions on the booming and evolving wine culture and business in China did not reflect what I remember my family's experience to be 8 years ago. I asked my family to send me some memories about their wine experience in China to give y'all a comparison. The exchange was fairly entertaining:
Mom:
"My white wines were from the B&B owner where we stayed, he somehow got them especially for me. They were imported from New Zealand. But they were not that good..."
"We went on a boat and I ordered a glass of white wine. They brought out the bottle and there was a dead snake at the bottom of the bottle. I screamed and said no thank you to the waitress." (this is one of my favorite visuals)
Brother:
"Haha, yeah that was rice wine - much more popular. Usually doesn't have a snake in it though. The rice wine is called baijiu, literally "white alcohol". Grape wine is not very popular, there isn't a wine culture in general with locals in rural areas. In higher-end tourist-oriented restaurants, you usually get red. There is a Chinese brand called Great Wall that isn't very good, unless you get their special reserve label which is decent. The red is drinkable, the white was not."
I'm glad to hear that the wine times are dramatically changing in China -- maybe we can even convince my mom to give the vino culture another shot. We are from Houston, so Yao Ming winery could be great entry point!
Our class discussions on the booming and evolving wine culture and business in China did not reflect what I remember my family's experience to be 8 years ago. I asked my family to send me some memories about their wine experience in China to give y'all a comparison. The exchange was fairly entertaining:
Mom:
"My white wines were from the B&B owner where we stayed, he somehow got them especially for me. They were imported from New Zealand. But they were not that good..."
"We went on a boat and I ordered a glass of white wine. They brought out the bottle and there was a dead snake at the bottom of the bottle. I screamed and said no thank you to the waitress." (this is one of my favorite visuals)
Brother:
"Haha, yeah that was rice wine - much more popular. Usually doesn't have a snake in it though. The rice wine is called baijiu, literally "white alcohol". Grape wine is not very popular, there isn't a wine culture in general with locals in rural areas. In higher-end tourist-oriented restaurants, you usually get red. There is a Chinese brand called Great Wall that isn't very good, unless you get their special reserve label which is decent. The red is drinkable, the white was not."
I'm glad to hear that the wine times are dramatically changing in China -- maybe we can even convince my mom to give the vino culture another shot. We are from Houston, so Yao Ming winery could be great entry point!
Navigating Trader Joe´s Wine Aisle
Before moving to the Bay Area, I had never been inside a Trader Joe´s. I can honestly say that TJ's has become one of my favorite things about the US, and if I were to ever move back to Mexico, it would be the thing I miss the most.
The first couple of months I lived here my kitchen could have been a perfect TJ's ad. Everything I bought from milk to spices, to frozen meals came from TJ's. That is everything except wine.
In spite of fully trusting TJ's in every other aspect of my grocery shopping experience, I was hesitant to try any of the mostly unknown wines that lay before me. I did not know where to start trying them, because I did not even know what I really liked.
Like most MBA1s with first-year struggles, my answer was found within the MBA2s. I received a link from an MBA2 friend to what has now become one of my most visited Medium posts: https://medium.com/@shruthibaskaran/in-vino-veritas-60f499bdd875
Shruthi graduated from the GSB in 2017, and though I never got to meet her, she became my unofficial guide to the Trader Joe's wine aisle. I hope it helps some of you navigate this world as well. An added plus is that all the wines in her list are under $15 and most are under $10, a necessary limit for my salary-lacking student life.
I post this not only to give you access to what I think is a great and easily understandable curated list of accessible wines but because it reinforces some of the things we have heard in class.
When we do not know about wine, like most of us millennials do, we tend to turn to friends and family to provide suggestions. We are not brand loyal, yet packaging and interesting names are sure to pique our interest (ie: Moon X, 19 Crimes, La Granja).
But most importantly we look for great deals in wine. We want to get the best bang (or buzz) for our buck, and this list delivers on just that.
If nothing else, we have learned that house branded wines, like Trader Joe's Grower's Reserve Merlot, are the best deals we can source!!
Here´s to happy drinking and exploring!
The first couple of months I lived here my kitchen could have been a perfect TJ's ad. Everything I bought from milk to spices, to frozen meals came from TJ's. That is everything except wine.
In spite of fully trusting TJ's in every other aspect of my grocery shopping experience, I was hesitant to try any of the mostly unknown wines that lay before me. I did not know where to start trying them, because I did not even know what I really liked.
Like most MBA1s with first-year struggles, my answer was found within the MBA2s. I received a link from an MBA2 friend to what has now become one of my most visited Medium posts: https://medium.com/@shruthibaskaran/in-vino-veritas-60f499bdd875
Shruthi graduated from the GSB in 2017, and though I never got to meet her, she became my unofficial guide to the Trader Joe's wine aisle. I hope it helps some of you navigate this world as well. An added plus is that all the wines in her list are under $15 and most are under $10, a necessary limit for my salary-lacking student life.
I post this not only to give you access to what I think is a great and easily understandable curated list of accessible wines but because it reinforces some of the things we have heard in class.
When we do not know about wine, like most of us millennials do, we tend to turn to friends and family to provide suggestions. We are not brand loyal, yet packaging and interesting names are sure to pique our interest (ie: Moon X, 19 Crimes, La Granja).
But most importantly we look for great deals in wine. We want to get the best bang (or buzz) for our buck, and this list delivers on just that.
If nothing else, we have learned that house branded wines, like Trader Joe's Grower's Reserve Merlot, are the best deals we can source!!
Here´s to happy drinking and exploring!
Napoleon: Champagne Marketer
While Champagne had always been known as a celebratory drink, Tilar Mazzeo suggests in The Widow Clicquot that the practice of celebrating with Champagne did not achieve mass appeal without some help from the Napoleonic Wars. Many of the final battles of the war between Napoleon and the coalition of Russia, Great Britain, Prussia, and Austria were fought in the Champagne region of France. The Russians captured the area from France and celebrated the victory with Champagne. The French then re-captured the area and celebrated with Champagne. The Russians then re-captured the area and celebrated with... Champagne. The combination of these celebratory victories and the peer-to-peer marketing of the foreign soldiers to other countries beyond France helped the annual production of the Champagne region grow from 400k bottles to over 5mm bottles in a short period of time.
P.S. There is also a theory that horse-mounted officers invented the practice of saber-ing Champagne bottles during these post-battle celebrations.
https://delanceyplace.com/view-search-results.php?2630
P.S. There is also a theory that horse-mounted officers invented the practice of saber-ing Champagne bottles during these post-battle celebrations.
https://delanceyplace.com/view-search-results.php?2630
The perils of Pot (to the wine Industry)
This week´s presentation on Green Thumb Industries by Wendy Berger left me thinking about cannabis not only as a regulatory proxy for the Wine Industry in the US but also on the topic of the "share of buzz" battle the spirits, beer, wine and cannabis Industries are fighting.
I ran into this short article on the Economist (https://www.economist.com/united-states/2018/10/11/cannabis-v-wine-in-california) that very succinctly states the major areas where wine and cannabis are most likely to come head to head in the upcoming decade. Two points really surprised me.
The first was the battle for harvest labor. Come harvest time, wine growers are having an increasingly harder time finding adequate labor (both in volume and in talent) to help pick the grapes. While the wine Industry's harvest time is seasonal, cannabis is grown and harvested year round, so they can provide better job security and stability for their employees. Additionally, marijuana pay is much better and work is much easier. Some growers even allow workers to do work from home a lot of the time. If you google "harvest labor lost to cannabis" a myriad of articles and OpEds on this subject will appear on your screen. Great wine is highly dependent on manual labor these days, so if this trend within the labor force is to remain, I wonder what the price implications for us wine drinkers will be in the future, or if industrialization will be the solution to this mounting problem.
The second issue that surprised me was the Wine Industry´s fear of loss of "buzz share" of women and baby boomers predominantly. I don't know about you, but when I picture the quintessential cannabis user it is not a 50+-year-old woman. But now that marijuana is legalized, that might change. Legalization, as well as cannabis' newfound appeal to the "health-conscious inebriate", might serve as new pathways to lead older women into this field - and wine growers don´t know how to battle this.
Whatever anyone's thoughts on cannabis and marijuana, it looks that this is an industry that is not only here to stay, but that will continue growing in the US, and with it its (registered) user base. it will be interesting to see what the real-life implications to the Wine Industry are, and how the Industry chooses to respond to them.
I ran into this short article on the Economist (https://www.economist.com/united-states/2018/10/11/cannabis-v-wine-in-california) that very succinctly states the major areas where wine and cannabis are most likely to come head to head in the upcoming decade. Two points really surprised me.
The first was the battle for harvest labor. Come harvest time, wine growers are having an increasingly harder time finding adequate labor (both in volume and in talent) to help pick the grapes. While the wine Industry's harvest time is seasonal, cannabis is grown and harvested year round, so they can provide better job security and stability for their employees. Additionally, marijuana pay is much better and work is much easier. Some growers even allow workers to do work from home a lot of the time. If you google "harvest labor lost to cannabis" a myriad of articles and OpEds on this subject will appear on your screen. Great wine is highly dependent on manual labor these days, so if this trend within the labor force is to remain, I wonder what the price implications for us wine drinkers will be in the future, or if industrialization will be the solution to this mounting problem.
The second issue that surprised me was the Wine Industry´s fear of loss of "buzz share" of women and baby boomers predominantly. I don't know about you, but when I picture the quintessential cannabis user it is not a 50+-year-old woman. But now that marijuana is legalized, that might change. Legalization, as well as cannabis' newfound appeal to the "health-conscious inebriate", might serve as new pathways to lead older women into this field - and wine growers don´t know how to battle this.
Whatever anyone's thoughts on cannabis and marijuana, it looks that this is an industry that is not only here to stay, but that will continue growing in the US, and with it its (registered) user base. it will be interesting to see what the real-life implications to the Wine Industry are, and how the Industry chooses to respond to them.
Pinot Pounders and the Moral Relativism of Wine Preferences
To paraphrase Alder Yarrow, while people can certainly improve their wine tasting experience and become better at recognizing various tastes, smells, and subtleties of different wines, there is no way for one person to categorize another person's wine preferences as "good" or "bad." As we saw in several cases, the Chinese practice of chugging fine wine often made it difficult for certain brands to distinguish themselves on quality, which arguably can only be noticed through sipping and proper tasting. However, although wine elitists may cringe, if certain Chinese consumers gain more utility from chugging their wine with their comrades, who is to say that this method of consumption is inferior to sipping or aspirating? In this vein, the GSB "Pinot Pounders" group was born. The Pinot Pounders gather in social settings to chug a small amount of Pinot Grigio, although there is a small faction in the group advocating for switching to Pinot Noir. At first glance, the group seems like a silly at best band of grad students pretending they are still in college and potentially degrading the experience of wine. However, participating in one of the group's sessions allows one to notice the strong communal bonds formed between the participants through the practice of chugging Pinot Grigio. Just like the traditional Chinese practice of chugging, the method of consumption advocated for by the Pinot Pounders should not be dismissed flippantly.
Buzz Share
This post doubles as a blog post and as a shameless plug for the company one of my friends co-founded. Flow Kana represents an interesting example of the marijuana industry starting to steal some of the "share of buzz" from wine and other alcohol products. In the most basic sense, the company's branded marijuana products sold through 3rd party dispensaries are competing on the retail level with wine and other alcohol products in California. Additionally, the company appears to be encroaching on other facets of the wine industry, such as tasting rooms. Flow Kana is building out its "Cannabis Institute," which will have a dual purpose. First, it is the central hub for the company, providing processing, manufacturing, and distribution of raw product from small, independent farmers. Second, the property will operate a retreat house with a pot-friendly bed & breakfast and a tasting room. Ironically, the property that was purchased for the Cannabis Institute is a former family winery, and the site of the tasting room is the family's iconic Big Dog Saloon, which represents a good microcosm of marijuana encroaching on wine's share of buzz as a whole.
https://www.businessinsider.com/flow-kana-builds-cannabis-institute-in-wine-country-2018-1
https://www.pressdemocrat.com/business/9284355-181/flow-kana-raises-125-million?sba=AAS
https://www.flowkana.com/cannabis_institute
https://www.businessinsider.com/flow-kana-builds-cannabis-institute-in-wine-country-2018-1
https://www.pressdemocrat.com/business/9284355-181/flow-kana-raises-125-million?sba=AAS
https://www.flowkana.com/cannabis_institute
WineInStyle - To Sell or Not To Sell?
Eberhart has found himself at a crossroads. And while I think he should be wary of the new buyers, I think the time has come to sell WineInStyle.
The first reason would be that Eberhart´s heart doesn´t seem to be fully invested in WineInStyle - and after almost ten years of living in two continents simultaneously- I don´t blame him. I think choosing to stay the course with WineInStyle would be furthering his commitment for the long-run with his company, and I'm not sure his personal life aligns with the responsibility this decision would entail.
WineInStyle has grown to a point where more money is needed and a more corporate structure needs to be set in place in order to maintain and accelerate their growth in Japan and other parts of Asia.
Eberhart has done an amazing job to reach this point, yet I believe a change in strategy is essential to ensure this exponential growth- and I´m just not sure Eberhart has the time and entrepreneur like passion anymore to follow through with this new challenge, once again at the expense of his personal and family life back in Palo Alto.
Additionally, I believe Khoo has proven to be a good leader for the next stage of WineInStyle. Eberhart took him under his wing to ensure that he was ready to be CEO, and it would be a testament of the trust he has in him to take Khoo´s side and vote for the sale of the company.
However, I do believe that before the company is sold, the board should do a deep due-diligence of the buyers, to make sure they are selling the company to the right partners to continue the vision Eberhart has for the company, and to support Khoo as the leader of the company.
This is not a decision that Eberhart will make based on valuation. Of course, the amount offered will be an important part of the sale, but this business is much more than just a cash cow for Eberhart - it's more like a child. And like any parent, he has every right to want to make sure he has created a path for his brain-child to be guided to the next steps under the right kind of leadership.
The short answer is yes- Eberhart should sell. Yet he should not sell to anyone with an offer. He should make sure the people he sells to will take care of the company the same way he has, and will maintain a feeling of high-quality and trusted service that the brand has come to be known for.
The first reason would be that Eberhart´s heart doesn´t seem to be fully invested in WineInStyle - and after almost ten years of living in two continents simultaneously- I don´t blame him. I think choosing to stay the course with WineInStyle would be furthering his commitment for the long-run with his company, and I'm not sure his personal life aligns with the responsibility this decision would entail.
WineInStyle has grown to a point where more money is needed and a more corporate structure needs to be set in place in order to maintain and accelerate their growth in Japan and other parts of Asia.
Eberhart has done an amazing job to reach this point, yet I believe a change in strategy is essential to ensure this exponential growth- and I´m just not sure Eberhart has the time and entrepreneur like passion anymore to follow through with this new challenge, once again at the expense of his personal and family life back in Palo Alto.
Additionally, I believe Khoo has proven to be a good leader for the next stage of WineInStyle. Eberhart took him under his wing to ensure that he was ready to be CEO, and it would be a testament of the trust he has in him to take Khoo´s side and vote for the sale of the company.
However, I do believe that before the company is sold, the board should do a deep due-diligence of the buyers, to make sure they are selling the company to the right partners to continue the vision Eberhart has for the company, and to support Khoo as the leader of the company.
This is not a decision that Eberhart will make based on valuation. Of course, the amount offered will be an important part of the sale, but this business is much more than just a cash cow for Eberhart - it's more like a child. And like any parent, he has every right to want to make sure he has created a path for his brain-child to be guided to the next steps under the right kind of leadership.
The short answer is yes- Eberhart should sell. Yet he should not sell to anyone with an offer. He should make sure the people he sells to will take care of the company the same way he has, and will maintain a feeling of high-quality and trusted service that the brand has come to be known for.
Fro-sangria
Thursday’s final presentation on alcoholic popsicles led me to think about other forms of alcoholic “foods.” One that immediately came to mind was sangria. It’s a drink that I’ve always associated with good weather and good company. I’ve also thought of sangria as an easy-to-make drink, though I’ve never tried myself. And with the fruit chunks, especially frozen, I feel like it would be an entertaining snack.
So a couple of questions came to mind --Why don’t more festivals offer sangria as a beverage option? What is the history of sangria? How difficult is it to make sangria? Could frozen sangria be an alternative to frosé?
It turns out that Sangria has a history that dates back to festivals - the 1964 World’s Fair in New York - specifically served at the Pavilion of Spain. And even before that, in the 1700s and 1800s, sangria was made in England and France using traditional grapes — white sangria, sparkling sangria, and sangria with peaches (zurra).
And it also turns out that the red drink filled with chunks of fruit that I’d always defined as "sangria" is just one form. Sangria means blood in Spanish, but not all sangria is made with red wine; it can be made with white wine, cava, and even cider. Today there is no official recipe, and a quick Google search reveals pages and pages of sangria recipe options. Apparently, there is also a similar alternative in Spain called “Tinto de Verano” which includes red wine, ice, and lemon soda or casera (artificially sweetened soda water).
As suspected, there are reports of sangria being the key to tapping into the ever elusive millennials. A global drinks analyst writes, “Sangria taps into a number of trends currently attracting Millennials, namely a tase for ’sweeter, refreshing, fruitier flavors,’ and an interest in ‘alcohol category blurring.’” Not surprisingly, the U.S. is the biggest international market for Sangria — and yet, I have yet to see sangria as a popular alternative at many festivals and large scale events.
And for the millennial segment that doesn’t have the patience to create DIY drinks there is also apparently a bottled alternative - Capriccio Bubbly Sangria. Even though it is made with grape wine, real fruit juices, and natural fruit flavors, many report its strong effect -- comparing it to Four Loko.
As the weather gets warmer, I will likely try experimenting with some of my own sangria recipes... and maybe a few frozen sangria popsicles.
Sources:
Why I took this course
I´m a little late with this post but I wanted to make sure I was able to share a little bit more about myself and my interests with all of you before the quarter is officially over.
I was born into a family that loves wine. My dad is known to pair every meal (except breakfast) with at least one glass of red wine. My mom has a monthly wine club that gets together to try new wine regions or varietals, often with the help of an experienced sommelier in the subject. Wine was always served at the dinner at my house and is thought of as an enhancer of the dining experience.
However, in spite of having grown up around it, and having parents that are fairly knowledgeable about wine, I find myself nearing my 30s and still not knowing much about the wines that I am drinking.
I took this class with the hope of getting my toes dipped in the subject. I wanted to feel more comfortable talking about wine, both from the US and international. I also wanted to be able to form my own opinion about wines and to be able to state it confidently.
While those were very ambitious goals for a 9-week course. I have slowly seen myself become more comfortable talking about wine and about my thoughts surrounding a specific wine a lot more than I did before. While I am far from an expert still, I feel more comfortable exploring this world that has always intrigued yet intimidated me. I have thought to understand this as a very long journey, and I think many of us have just started taking our first steps.
I was born into a family that loves wine. My dad is known to pair every meal (except breakfast) with at least one glass of red wine. My mom has a monthly wine club that gets together to try new wine regions or varietals, often with the help of an experienced sommelier in the subject. Wine was always served at the dinner at my house and is thought of as an enhancer of the dining experience.
However, in spite of having grown up around it, and having parents that are fairly knowledgeable about wine, I find myself nearing my 30s and still not knowing much about the wines that I am drinking.
I took this class with the hope of getting my toes dipped in the subject. I wanted to feel more comfortable talking about wine, both from the US and international. I also wanted to be able to form my own opinion about wines and to be able to state it confidently.
While those were very ambitious goals for a 9-week course. I have slowly seen myself become more comfortable talking about wine and about my thoughts surrounding a specific wine a lot more than I did before. While I am far from an expert still, I feel more comfortable exploring this world that has always intrigued yet intimidated me. I have thought to understand this as a very long journey, and I think many of us have just started taking our first steps.
Valle de Guadalupe - A different kind of Wine Country
We heard in our Midterm presentations about many up and coming wine regions, many of which I hadn´t even heard of. But one of the presentations hit very close to home: Mexico.
I was born and raised in Mexico, in a multicultural family that has a great love for wine. Wine was served at lunch at dinner almost every day (for 18+ drinkers only, of course).
But in spite of living in Mexico, most of the wines I got to see and try growing up were European wines. This was a trend I saw in many other houses and restaurants in Mexico. Mexican wine was thought to be either really bad quality or extremely expensive compared to its European counterparts.
However, a few years ago I started seeing more an more Mexican wines in Restaurant lists, and eventually, the new trend made way to my house. And while there are a few wine regions in Mexico, most of those new, quality wines I was seeing came from Valle de Guadalupe.
Many tourists like to call Valle de Guadalupe the Napa of Mexico. And while I understand where the comparison began, I believe they are worlds from each other. Where Napa is worldly, sophisticated and world renowned, Valle de Guadalupe is adventurous, innovative and a little outside the box.
Driving through the valley, it's sometimes even hard to see the vines scattered around the rocky terrain. The wineries are a lot smaller, and harder to find. In fact, driving at night, you might find yourself thinking you are lost in the mountains, as an unlit dirt road lays before your eyes.
Of course, we have our Mexican Mondavis, with wineries like Monte Xanic which was started by a group of friends a few decades ago with the goal of creating delicious premium Mexican wines - a feat I believe they have accomplished. But many of the wineries in the Valley are a lot smaller than their Napa counterparts. The Mexican market is not yet mature, so wine is a drink that a relatively small percentage drink regularly. Yet I believe this has allowed winemakers in Mexico to be a little more daring with the flavors they choose to portray in their wines. The vines in the area come from hundreds of different places in the world - Spain, France, Portugal, Chile, Argentina - you name it. The Valley has yet to pledge loyalty to one type of vine or grape. This has allowed for amazing new blends and innovative flavors.
I would be amiss if I talked about the Valley without mentioning the amazing food scene in the area, one that was there before the wineries and has developed and grown as the wine region has. The restaurants mimic the innovation and cultural mixture of our wines. We have chefs from Spain, the US, Mexico and South America combining recipes from other regions with the amazing seafood and ingredients available in this area of the country.
If you find yourselves at any point this year with a long weekend to fill don´t hesitate to travel a little south of the border and see this emerging wine region for yourself. Your palate and sense of adventure will thank you for it.
I was born and raised in Mexico, in a multicultural family that has a great love for wine. Wine was served at lunch at dinner almost every day (for 18+ drinkers only, of course).
But in spite of living in Mexico, most of the wines I got to see and try growing up were European wines. This was a trend I saw in many other houses and restaurants in Mexico. Mexican wine was thought to be either really bad quality or extremely expensive compared to its European counterparts.
However, a few years ago I started seeing more an more Mexican wines in Restaurant lists, and eventually, the new trend made way to my house. And while there are a few wine regions in Mexico, most of those new, quality wines I was seeing came from Valle de Guadalupe.
Many tourists like to call Valle de Guadalupe the Napa of Mexico. And while I understand where the comparison began, I believe they are worlds from each other. Where Napa is worldly, sophisticated and world renowned, Valle de Guadalupe is adventurous, innovative and a little outside the box.
Driving through the valley, it's sometimes even hard to see the vines scattered around the rocky terrain. The wineries are a lot smaller, and harder to find. In fact, driving at night, you might find yourself thinking you are lost in the mountains, as an unlit dirt road lays before your eyes.
Of course, we have our Mexican Mondavis, with wineries like Monte Xanic which was started by a group of friends a few decades ago with the goal of creating delicious premium Mexican wines - a feat I believe they have accomplished. But many of the wineries in the Valley are a lot smaller than their Napa counterparts. The Mexican market is not yet mature, so wine is a drink that a relatively small percentage drink regularly. Yet I believe this has allowed winemakers in Mexico to be a little more daring with the flavors they choose to portray in their wines. The vines in the area come from hundreds of different places in the world - Spain, France, Portugal, Chile, Argentina - you name it. The Valley has yet to pledge loyalty to one type of vine or grape. This has allowed for amazing new blends and innovative flavors.
I would be amiss if I talked about the Valley without mentioning the amazing food scene in the area, one that was there before the wineries and has developed and grown as the wine region has. The restaurants mimic the innovation and cultural mixture of our wines. We have chefs from Spain, the US, Mexico and South America combining recipes from other regions with the amazing seafood and ingredients available in this area of the country.
If you find yourselves at any point this year with a long weekend to fill don´t hesitate to travel a little south of the border and see this emerging wine region for yourself. Your palate and sense of adventure will thank you for it.
Love affair with bubbles
I have an addiction to bubbles. I am that person who upon
receipt of a sodastream, immediately dumped in a bottle of white wine. My
previous employer had free sparkling water and I would often go through half a
dozen in an average day. Before I get judgment from the blog readers turned armchair
doctors – there is no
association with bone mineral density and carbonated water. There is an association for soda, but that’s
likely due to caffeine and acidic compounds within the soda.
But what is it about these drinks that causes us to crave
the chorus of bubbles exploding on our tongue? Weirdly enough, it turns out that
it has very little to do with the bubbles after all. As the carbon dioxide hits
your tongue, an enzyme in your saliva called carbonic anhydrase quickly
converts the CO2 into an acid in your mouth, giving it an astringent ‘bite’. This was proven
out in a series of experiments by Bryant and Wise in which they took
participants into a hyperbaric chamber (simulating high pressures) and gave
them seltzer water. In the high pressure environment, the bubbles remained
trapped in the liquid and never “fizzed” on the participants tongue, yet they
all reported a characteristic bite from the carbonated drinks.
So I guess I’m not a bubbles addict, I’m an acid addict?
Take the money and run? Wineinstyle
Just as in consumption of wine – in business, knowing when
to stop is much more important than knowing when to start. Eberhart faces a
difficult decision – walking away from a business that he built and has a significant
emotional investment in, or face the incredibly complex task of managing a
company from thousands of miles away. To add to the conundrum, the new group of
investors appears to be of questionable background.
I contend Eberhart is no longer responsible for the day to
day operation of the business – while he has been a Chairman by letter, he has
been acting closer to a CFO for the business in terms of his cash management.
The day to day management of the company and its ultimate operational success
or failure is in the hands of the CEO – Khoo. In this light, I would sell to
the investors pending confirmation that the money is clean and can be
repatriated to the USA. Additionally, I would seek an advisory contract from
the new board to stay on as a consultant if they desire – this would both add
additional capital to his personal balance sheet (I cannot imagine the exit on
a $4M revenue business is enough to live on) while also giving him an
opportunity to positively influence that which he has built.
2019 Wine Trends - How did we do?
Following our final presentations, I took a look at some of the top predicted trends of 2019 to see how many we hit collectively:
1. Growth of under-the-radar, underappreciated varietals - Check. (Birdhorse)
2. New land management techniques resulting from environmental concerns - Check. (Vincycle)
3. Growth in education of wine as a food-centric beverage (in response to concerns of moderating alcohol intake) - Check. (Duovino, Wineology)
4. Growing interest in low alcohol wine options - Hmm... not sure if we hit this one
5. Technology enabling easier purchase of wine, bringing wine sales online - Check. (IndieSips, WineDrop)
6. Consumers will "hunt down sparkling wine from new places" - I'll give this one to Ridley
Pretty good, team!
Source:
https://www.forbes.com/sites/jillbarth/2018/12/13/how-we-will-drink-wine-in-2019-trends-according-to-winemakers-and-pros/#525f9dc63a9c
1. Growth of under-the-radar, underappreciated varietals - Check. (Birdhorse)
2. New land management techniques resulting from environmental concerns - Check. (Vincycle)
3. Growth in education of wine as a food-centric beverage (in response to concerns of moderating alcohol intake) - Check. (Duovino, Wineology)
4. Growing interest in low alcohol wine options - Hmm... not sure if we hit this one
5. Technology enabling easier purchase of wine, bringing wine sales online - Check. (IndieSips, WineDrop)
6. Consumers will "hunt down sparkling wine from new places" - I'll give this one to Ridley
Pretty good, team!
Source:
https://www.forbes.com/sites/jillbarth/2018/12/13/how-we-will-drink-wine-in-2019-trends-according-to-winemakers-and-pros/#525f9dc63a9c
Wine in Aluminum (Bottles?)
The newest development in alternative packaging for wine…
the aluminum bottle. While we’ve mostly only seen this for beer thus far, could
this take off for wine?
Consumers are already developing an acceptance of wine in
cans, especially for the portability and small format. Could aluminum bottles,
with the added benefit of resealable tops, take off even more? Sterling
Vineyards (owned by Treasury Wine Estates) thinks they may.
However, there are a few barriers. First, only a small
number of suppliers manufacture bottles in sizes that comply with federal
regulations (187, 375, and 750 milliliters). But the biggest barrier is the changes
that would need to be made to filling lines.
Either way, expect to see a few of these trickle out this
year!
Articles Referenced:
https://www.northbaybusinessjournal.com/northbay/sonomacounty/9332282-181/wine-aluminum-bottles-napa
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