Marks Vision of Dark Side of the Moon!

 The Wine Industry is moving into uncharted waters.  No one had ever seen the backside (dark side) of the moon until the astronauts circled the moon 40 years ago, and even then we never get a complete view.  Last year the movie “Bottle Shock” chronicled the dramatic win by Chateau Montelena at the Judgment of Paris tasting in 1976. It forever changed the fortunes of Napa county wineries and eventually the global wine business.

 

Once again we are at a point where Bottle Shock 2 may be taking place and this time it’s not a tasting event, this time it’s the effect of the collapse of the global economy. This morning I read a well written article on Viral Vines (by Richard Beaudin). Richard had analyzed Monday’s article by Kevin McCullum in the Santa Rosa Press Democrat entitled “Makers of high-end wines caught in ‘dead zone’ and came up with some of the same sad conclusions that I had; that some wonderful small wineries may get caught in the shuffle.  About two months ago I suggested the same thing and some wine people became irate. 

 

Unfortunately, the evidence is mounting. 

 

Yesterday I read a Google Alert indicating that a Californian winery was one step away from foreclosure based upon the actions of a Judge in the case.

 

Several days ago, USAToday announced that they were going to join the WSJ and Amazon in selling wines.  It has been rumored that Sears will be starting to sell wines sometime this fall.

 

The number of wineries for sale in Napa & Sonoma are approaching historic high levels.

 

In a discussion with a retail expert from the Health & Beauty sector, she stated that the wine industry was just undergoing what much of the retail businesses are experiencing. Its not just wine folks; it is everything retail!

 

There seems to be an explosion of “ads” for independent wine consultants.  It is actually an organization that, not unlike Avon, provides for individuals the tools to host wine parties where they can have friends taste wine (and I assume that they can then sell the wine).

 

More and more, I am seeing ads / emails for good quality wine being sold at steep discounts and if all this wasn’t enough I have come across a number of different offers for “home winemaking” classes.  I personally know several dozen people who bottle their own wine and have been doing it for years. Mostly their efforts have been limited and for fun.  Many say that it doesn’t require that much effort to produce a good drinkable wine.  If people are trying to save money wherever they can, and with the dramatic increase in classes to teach people how to make wine (and provide the correct tools and juice) will we see another crucial turn in wine drinking saga for everyday wines?

 

In a terrific blog yesterday John Corcoran (www.thinkwinemarketing.com) wrote about “Wine Brand Building Focus” and the need to develop strategies that can be built upon.  Unfortunately, I see far too much reactive business moves instead of planned proactive marketing.  It would be very interesting to see how many wineries are taking into account all the above issues and making a plan to overcome them.

 

Maybe there are a few people out there in the wine business that have the experience to envision how events will unfold but they are like those astronauts of 40 years ago.  For the vast majority of us we are part of the live movie “Bottle Shock 2” and only time will tell!