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Saturday, May 23, 2009

Panic @ the Wine Shop

                Change without compromise is impossible in the face of volatile circumstances.    In business, if you do not change you die.  However, you are shooting yourself in the foot if you change so much that you become unrecognizable in the market.  Today I was a kid in a candy shop browsing the shelves of a wine shop in Chestnut Hill.  However, I realized just how much wine shops have changed. Two of my local favorites have abandoned what makes an ideal wine shop unique and interesting.  

                Many small, neighborhood wine shops are up against some heavy competition box - stores, large high volume chains, grocery stores.  The large retailer and small retailer are fighting for the same foot traffic just as the local butcher competes with the larger grocery store.  However, I buy my meat at the local butcher (Emerald Meats) because I know the person preparing my order, I get excellent customer service, and the product is worth making an extra stop.  In my opinion, it’s even worth a little extra money – the steaks are that good.  However, if they started selling the same product as the supermarket I would not need to make the extra stop.  This is exactly what is happening in wine shops.

                In the face of changing and challenging economic times, many small wine shops are abandoning what makes them unique in the marketplace.  Margins are very tight for the small retailer.  The holiday season was exceptionally slow and the winter was dismal.  Consumer case orders plummeted.  Inventory stagnated.  Distributors swooped in to help.  “Austin Liquors sells 10 cases a month of this……”  “This is the number 1 selling brand in Stop and Shop!”  “95 in Parker!”  “$3.33 a bottle…you’ll make a killing!”  Out went the “hand sells” and in came the KJ’s.  Precious shelf space is frequently being gobbled up by the same high volume, heavily branded products you can find in the large stores.  Vanilla has started to creep into shops that were once a haven for flavors you never tasted or even heard of.  In the long term this makes no business sense at all.

                The small retailer cannot compete with the large retailer on price or foot traffic.  Yankee Spirits can buy wine in large amounts at the steepest discount available which gets passed to the consumer – most of the time.  Small retailers typically do not have the space or the sales volume for large supplier orders even if they do have the income.  Where they can compete is in the niche, hand sell market.  When I walked into Winestone today I felt like I was walking into an art museum.  So many producers and even varietals I have never seen before.  Patrick was absolutely electric about his selections.  He spoke about them with interest and passion.  I came home with 6 wines I hadn’t seen available elsewhere, an MT from Alto Adige and a Chenin Blanc from Coteaux du Vendomois.  I also bought 3 Roses which I will taste blind from Coteaux du Vendomois, Beaujolais, and Provence (it was 90 and sunny in Boston to start Memorial Day weekend!)  All interesting and all under $20.  They have wines in every price range – to include the “benchmarks” from all over the world, not just California.  The store is the perfect size – not too big.  The shop is focused - no beer, no spirits (that I saw.)  They are focused on their market and are providing the products and service for consumers looking for a unique experience. 

                Times are tough and something’s gotta give but it doesn’t have to be uniqueness.  Change means doing things differently, a new approach.  New customers, wine seminars, delivery services (Winestone), daily tastings, and a place where other wine lovers can meet and converse, all things that a large or non-specialty retailer cannot offer effectively or efficiently.  While adapting to the changing environment the wine shop cannot abandon what makes it unique in the marketplace – unique product and service.

12:14 pm edt          Comments

Sunday, May 17, 2009

Boson University
I will be teaching the Level II class the Elizabeth Bishop Wine Resource Center at Boston University starting this summer.  This is the same program which sparked my interest in serious wine studies.  The program is on par with the WSET course of study. 

The course goes far beyond more recreational "tasting" classes available. This is due in large part to the instructors.  Bill Nesto MW  and Sandy Block MW  passed the rigorous Master of Wine exam (I hope to sit the exam in 2011) and are well respected educators and contributors in the wine industry.

Level I is for the novice looking for a better understanding of the world of wine.  Level I is not currently a prerequisite for Level II. However, I took level I even though I was already working in the industry.  I got quite a bit out of it! I knew a little of this and a little of that.  Level I filled in the gaps, especially in viticulture and vinification which is an essential tool for understanding the what and why in the glass.  Level I is where I realized how much of my "knowledge" of wine was really spoon fed marketing material.  Level I is where information starts to become understanding.

Level II is for the serious wine student and industry professional. The course has changed a bit since I was enrolled.  BU Gastronomy students can now take the course for credit toward their Master's degree.  I can imagine that these students add an interesting element in classroom discussion.  There is also a mid term in addition to the final exam.  The final exam is not to be discounted.  It took a good deal of preparation and review.   A passing score is required to enroll in level III.  My Level II class was a diverse group of avid consumers, wine salespeople, retailers and those wishing to break into the wine trade.  It is remarkable to watch the evolution of "connoisseurs" becoing more humble in their appoach to wine when they realize that the world of wine is much larger than their own collection.  The class was both interactive and intense even competitive at times.  Wine identification skills begin to develop.  With classroom practice students are able to describe to what is in the glass in a meaningful way. Learning outcomes include an understanding of varietals and wine regions within a geographical and historical context.

Level III and IV guide students from understanding to mastery.  The class sizes are smaller and the learning outcomes are much more broad and in depth.  You can read more about the course here http://www.bu.edu/foodandwine/wine_programs/  This is where I decided that I would pursue the Master of Wine designation.  I achieved the diploma in January 2008 and immediately went to work to build a wine portfolio for Atlas Distributing as the Wine and Spirits division manager. I worked for Atlas for a year.  The portfolio became quite successful but the sales route was hellish for me and my young family. Along the way I encountered a good proportion of buyers with loads of wine knowledge and very little understanding about wine.  The desire to expand their understanding is impeded by the same "give me what I need to know" "spoon feeding" I encountered as a buyer.  This is what I hope to remedy as an educator.
11:11 am edt          Comments


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