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Great speech by Ryan Opaz at the Winefuture conference taking place right now in Rioja. I couldn’t agree more with everything he says. Here’s the link to Catavino: www.catavino.com

When Robert Parker first started his newsletter in 1978, no one believed that an amateur outside the wine world could say anything worth listening to about wine. Then 1982 happened in Bordeaux, and Parker won the day. I may be simplifying a bit, but what he was responding to at the time was a problem in the fine wine trade with conflicts of interest and unscrupulous salesmen hawking plonk with fine wine labels attached. At the time the wine industry needed a shake up. It needed someone to step up and speak for the budding wine consuming public who wanted to understand and trust in the wine they purchased.

Using the simplest and cheapest method he had at the time to publish content with, he took a $2000 loan from his mother and a mimeograph machine with which he published the first issue of what we know today as the Wine Advocate. Struggling to find subscribers and make a living at it, his early days draw stunning parallels with today’s new wine media.

Today things again need a shakeup. For the past decades the everyday consumer has been ignored. I’m not talking about the high end or even weekend wine geek, but rather the consumer who likes wine, wants a better bottle and could give a shit if the wine has terroir or 90+ points. They want to enjoy the wine for what it is, social lubricant, and while in some cases this may lead to a new wine geek in training, it most likely leads to some sort of brand, or grape loyalty by an individual looking to unwind after a long days work.

The problem is retailers, importers, and the press were all trying to sell the same package of BS that you need to “know wine” to love wine. It’s the teach first drink later model, which I believe leads too often to consumers afraid that they might do something wrong, and as a result they end up simply buying based on price and what the label looks like. Why, because they are the only things not trying to tell them that they aren’t smart enough to enjoy wine. They were the only indicators of possible quality other than the advertisement hanging around the neck saying so and so thinks this wine tastes like some number.

Today things have begun to change. The consumer has choices, or is starting to, and the internet is bringing us these choices. Gary Vaynerchuck is one of these choices. I constantly hear wine professionals talk about how they can’t stand to listen to him, and they wonder if he knows what he’s talking about. “How can anyone listen to him scream like that?” is the common refrain. Truth is he could care less. We “the wine geeks” are not his audience. We have no value to him. We are observers, jealous that we didn’t see the millions of weekend wine drinkers who were looking for a new voice. Gary found those who didn’t care about wine in any significant way other than to know if it went with their pasta, or if they could woo the women that they were bringing home that night. He speaks their language, one that puts wine in the middle of life and does not try to separate it out.

What is happening now is incredible to watch, these weekend wine warriors, are beginning to care. They are beginning to listen, but they do it without the silly tasting terms that we traditionalists espouse. They do it in a way that makes sense to them and that they can relate to. They own this new conversation, and the internet is facilitating it. Yes there is crossover with the world of us self professed “geeks” but that is simply the grey areas you see in any discipline, where amateur becomes devotee. In the end these consumers now are talking about wine and buying wines, and are doing it with the tools they use to communicate within their social circles everyday.

Facebook, once a college meet up site, is now a place where brands are being built. Individuals can become “fans” of brands, and create groups for their favorite grapes. On the other hand Twitter, a seemingly ridiculous idea, 140 characters about what you are doing, has become a nexus point for sparking conversations and new ideas, not to mention a place where information about what wine to buy tonight is being searched out. No matter what you think of it, it is powerful, and important. (Photo from by vivancowineculture)

While in another more recognizable form for many of us we have Social tasting note sites like Adegga and Cellartracker which are allowing consumers to share online what wines they own and to see what their friends are drinking. These Social tasting notes are even more powerful when you look at the way that Google indexes them. Often times a wine searched for on Google leads a consumer to a social tasting note site, before they find the winery website for the wine (if it exists at all).

These simple internet based tools and networks are making significant waves in the wine world, and they are only now in their infancy? Take for example the AVIN a unique code attached to every wine in the world, similar to the ISBN for books. Today it is being converted to an open source project so that the whole wine industry can benefit from it’s utility and contribute to its success. A lot of people laugh at these online tools but it reminds me of a quote I found online: “This ‘telephone’ has too many shortcomings to be seriously considered as a means of communication. The device is inherently of no value to us.” This was Western Unions response to the telephones invention.

Ironically similar statements are being made about blogging today. The truth is that we are seeing the fading away of yesterdays’ tools of communication, giving way to a new way of looking at wine:

Today we again see the future.

Like before when people said Parker would never get anywhere, we hear the same voices today about blogging. So many misconceptions and falsehoods surround the world of blogging that I could spend the next two days dispelling them, and still not finish. This past week in Lisbon 120 bloggers, or “want to be bloggers” gathered for 3 days to talk about wine, the internet, and to taste and discuss wine. The line was blurred with mainstream reporters, pure bloggers, wineries, and PR types, all trying to learn more about this growing world. The reality is that blogs are today’s mimeographs, and even though anyone can start one, it takes talent and effort to make one work. There maybe thousands of blogs, but only a few that work hard enough to shine. It’s also true that we might not like what they are all saying, but how is this any different from today’s media where every town has multiple newspapers with contrasting loyalties. Smart brands will realize this, and are beginning to pay closer attention to them.

This is the future, some may even say the present. Go ahead stick your head in the sand, pretend it’s a silly fad and that it is just a “phase”. Truth is whatever the look of wine communication is in the coming years, it will be different from todays. Your choice is either to adapt and take advantage of the opportunities it offers, or you can sit there and complain, and let it pass you by.

Today’s consumers have voices. The internet have given them voices, And these voices are not your competitors or enemies, but rather clients, readers, buyers, and sometimes new friends.

Our job as wine writers and educators today is to make sure that these consumers are given good information and an opportunity to learn more.

Our job as wine producers and marketers is to learn how these new tools work so that you can join in the conversations that are going on. The conversations going on today are everywhere. Before these conversations stayed in peoples homes, at parties, in the bar down the street, spreading ignorance and falsehoods without a way to measure their influence, or a way to correct them. Today these conversations are online. They are searchable, they are contextual, they are everywhere. But most importantly they are offering you a chance to join in.

But the real truth is that the consumer is tomorrows critic. And in the end if they don’t know where Tempranillo comes from it doesn’t matter, they do know whether or not they like the wine. As a group they have an aggregated voice that is powerful and broad. These consumers may never be the educated WINE GEEKS we all wish they were, but they will be the ones to buy your products, and share their thoughts with their friends, just like they always have. If you do not listen to them…you lose. If you choose to engage with them…you win.

Remember Wine is a conversation. My favorite bottles have been shared with friends, late into the night, searching out the solution for all the worlds problems. At the time of opening these wines, points, varietal, terroir may have all been important, but as the last drop was drained all that mattered was the person I was sharing them with. The conversation, lubricated by the liquid we all love, is what I cherish most and the reason for opening the bottle. Today the internet is also a conversation. It is not monologue it is a dialog. If you are not prepared to engage and talk to your consumer, be prepared for disappointment. Today’s consumer wants a conversation…no they expect one.

Today you can drive your own sales, rather than waiting for the critic to do it for you. But only if your honest, open and real. The internet is not a place to sell BS, it’s a place to have a dialog…join in and you will win.

Thank you.

Ryan Opaz

I was invited to Santiago to address about 60 wineries on Social Media Marketing in the U.S. Wine industry in a seminar put on by Wines of Chile. WoC were kind enough to assign me a driver to visit seven wineries over the next two days, most of which hadn’t been able to attend the seminar.

Chile reminded me of Napa about 20 years ago…most everyone I met was younger than 35, the level of technical oenological knowledge was amazing, their search for and experimentation with new viticulture areas was nothing short of passionate and relentless…and there’s a lot of territory in which to search for terroir. Also many of the operators I met are family companies (Cousiño Macul is 7th generation), or else owned or backed by money folks from the major industries in Chile…mining, shipping, telecom etc.

We were doing a tasting at one of the smaller but cutting edge technology oriented wineries when my host Max Darraidou pointed to the old vines…which were planted in 1999. He and oenologist Ignacio Casali are doing some fabulous work identifying soils, varietal clones, hillside orientation and microclimate patterns in the Leyda Valley, home to the eponymously named winery.

The folks at Santa Carolina really demonstrated the warmth of the Chilean character with an American flag flying in concert with their national banner to welcome me at the winery entrance. The energy and enthusiasm in the room were palpable, and we all toasted Richie Scelfo, an old friend who represents them in the U.S. with Carolina Brands USA at a fabulous lunch of Chilean specialties…I had my first taste of Chirimoya, a native fruit there, but scant time to finish it because our focus was on talking…that’d be me doing the talking.

I also met with the Santa Rita winery whose business offices are in Santiago, and another family operation from down south named Viña Maquis which is doing some really interesting things with Rose’s and dessert wines along with their table wines. They hosted a dinner at a very innovative restaurant in an beautiful old part of town where the rich folks lived in the late 1800’s and is now being taken over by artists.

The next day was a whirlwind of tastings with a lunch at the organic and soon to be biodynamic Matetic where winemaker Paula Cardenas hosted me at the winery’s restaurant. I had my first taste of Loco…a local seafood delicacy that was explained to me as being “like Abalone” but was really just a VERY LARGE SEA SNAIL. They don’t call it loco for nothing…you have to be crazy to eat it. A visit to the hacienda of Viña Mar capped off the trip. It’s located between the coastal range and the Andes and the hacienda was a beautiful building in the center of vineyards…sort of like a South American version of Falcon Crest for those of you who are old enough to remember the old TV show. Another flight of spectacular wines with Melissa Hahn and winemaker Patricio Celadon and I was off to the airport and home.

Bottom line, I went down there with no real sense of what makes Chile, well Chile. And I came away with a newfound respect for a country that may be somewhat unknown, but is clearly on the cutting edge of responding to the changes we’re seeing in the American wine consumer. A nod to Dr. Debs of Good Wine Under $20 for borrowing her QPR tag in the headline. It stands for “Quality Price Ratio” which I suppose doesn’t need any further definition. QPR is what American wine consumers are looking for, and I found a whole country that delivers it. How cool is that?

I was invited to reprise my Social Media Marketing presentation from the USDC at two upcoming seminars being held by Nixon Peabody, the industry’s top law firm whose bev alc. practice is headed up by Vince O’Brien. The seminars are Nov. 17 in NY and Dec. 2 in San Francisco. They are invite-only event, but if anyone is interested in attending, please email me and I’ll forward it ono to the organizers.

No sooner did we leave our post conference meetings in NY, than I’m on an airplane again winging my way across the equator to Chile. I was invited by Lori Tieszen, Exec. Dir. of Wines of Chile USA to give a presentation on social media marketing to a bunch of producers. Those of you who read this blog know that SMM is particular passion of mine, and we have been doing some really interesting thing in the space for wines and spirits. Lori is an old friend from my Palace Brands days and has had a fabulous career with Domecq, Moet Hennessey and now WOC.

Amazon.com was scheduled to present their wine plans and unfortunately bailed with two days notice. Lori asked if I’d fill in and do a presentation on ecommerce as well, which I of course said yes to. So I ended up spending Saturday polishing the SMM pres and scrambling to pull together one on E-comm. Not sure what Amazon’s rationale was, but they sure didn’t make many new friends by canceling at the last minute.

It’s spring in Santiago, but unfortunately a dreary day here and I can’t see the Andes. The speech is Monday and then I’m going to spend Tues and Wed visiting some of the wineries, so should get a better view of the country then.

Update: The presentations went extremely well, the sun came out setting the Andes ablaze, and it turned out one of the winery owners was a Cornellian too (both Lori and I went there)…small world. the common questions I get are how do I get started and won’t this suck up my time. My recco on the former is to just set up a blog with Google’s Blogspot and start writing. The key is to be authentic, write from the heart and your audience will find you. Regarding the time suck…only if you let it…fewer and more thoughtful posts are more valuable than poundage.

Clearly Chile is in a unique position of potential…great track record of QPR (Quality/Price Ratio) and the wines get better every year. They are running in the slipstream of Argentina and getting great press coverage (according to WoC, up 400% and bottle sales up significantly as well. Now the challenge is to realize the potential. l I believe they have the people in place who can make that happen. At lunch after the session I met their management and internet marketing teams and was really impressed with their knowledge, capabilities and passion.

I’ll be visiting some wineries tomorrow and Wed, then a night flight back to NY for an Austrian event hosted by the one and only Willi Klinger of AWMB.

Wow! After months of planning and endless detail the U.S. Drinks Conference 2009 was a great success that exceeded even my optimistic hopes. We had SRO both days with some 151 attendees from 11 countries, 32 speakers on nine separate panel discussions. We’re still sorting through the eval forms and I’ll post pix next week, but the anecdotal feedback we got was “absolutely fantastic.”

Our goal was to focus the conference on practical information that attendees could put to use right away. Some folks came away with an improved understanding the complicated three-tier system from the mouths of the regulatory folks who write the rules, and some with new ideas on how to work with on and off premise operators. Wine folks got to hear some fascinating dialog and different perspectives from giant (Pernod Ricard…Jeanne Eliades), medium (Winebow…Leonardo LoCascio) and small/new (Darcy and Huber selections…Carlo Huber). The spirits panel provided an earful of great insights from two startups who are leveraging innovation and creativity to compete with big budget brands (St. Germain and Leblon). And the internet panel staffed by Paul Mabray, Derek Bromley and Peter Spande helped put perspecitive and flesh on the bones with practical examples of how social media marketing is being used in the industry.

We did of course start the morning off with some traditional presentations…John Beaudette on market entry options and economics, and Jeff Grindrod and Mike Ginley gave a data packed overview of the U.S. market structure for Wine, Beer and Spirits. And I gave a speech on budget allocations and Social Media Marketing that engendered a whole lot of interest, questions and follow up requests.

Interestingly, we also got requests from some country trade associations to see if we’re interested in reprising a shortened travel version of the conference to present to their producers…Madrid and Santiago look interesting.

We also had some meetings with prospective clients including a Turkish wine producer, a Dutch company interested in reintroducing a one time big volume brand, and a new-to-the-industry Peruvian Pisco producer introduced to us by my friend Johnny Schuler.

For those of you who attended…thanks, and for those on the fence, you definitely should plan on coming next year. Yes, we’re going to be holding it again in 2010, probably in NY, date TBD.

Great post today by Dr. Vino with a link to a very good summary post by Mike Steinberger on Slate that gives a well written overview of what I’ve termed the “Parker Kerfuffle”.

For those not familiar with the specific issue this was a watershed moment in the evolution of the modern wine industry. Steininger titled it the democratization of wine drinking but I think it goes much further than that…it marks a tipping point in the democratization of wine evaluation, wine communications and wine marketing. And the ramifications are just beginning and will be felt far beyond our little wine and spirits industry.

OK, the king may not be dead, but Dr. Vino and Co. just pulled aside the green curtain and it turns out the king has what may become an incurable case of gout.

Here’s a great video presentation by Clay Shirky, Prof. at NYU and internet and technology thought leader on how the media landscape has fundamentally changed. What I like about this is his very clear, cogent and simple distillation of the tectonic shift we’re witnessing.

http://video.ted.com/assets/player/swf/EmbedPlayer.swf

I participated in a trade survey recently for which the results were just released at the Wine Industry Financial Symposium in CA. There were some interesting conclusions, none of which were new or surprising, but it is nice to have the stats to evolve opinion to fact. They’re publishing data from a consumer study next week.

Here are my summary comments on what the trade opinion survey data show:

-Category growth is in under $20 wines, over $20 is getting hammered and $10-$15 is the sweet spot
-In the under $20 category, Chile, Argentina and Spain in that order are the most rapidly growing import countries
-In the over $20 group, most respondents reported volume is “same or less” with out a few countries cited as showing any growth at all. And it’s the same countries and order
-On premise, significant growth in BTG under $8 and BTB under $30, with corresponding decreases at the higher end
-Australia continues to show the biggest declines at both the low and high end
-Regions selling value wines now, will prosper in the recovery (meaning Argentina, Chile and Spain)
-Consumers are more price-driven than ever
-Distributors’ top priority is reducing inventory
-Social media is avery important tool to communicate with the trade (that’s interesting…we’ve known that to be the case with consumers for a while, but this is significant in that it’s the trade.
-Top wine bloggers are Eric Asimov, Eric Orange, Jancis Robinson, Stephen Tanzer, Tyler Colman, Alder Yarrow

Last night we held TDN at the Mixoloseum, a chat room of the bloggers, by the bloggers and for the people. About 40 cocktailians convened in cyberspace for an advance taste the new Kahlua Coffee Cream and create and share new drink concepts. For those not familiar with TDN it’s a great program developed by the OCSWG (Online Cocktail and Spirits Writers Guild), a consortium of 20 or so of the top cocktail bloggers.

TDN is open to anyone and the model is to feature a particular spirit, have attendees create drinks, post them live in a chat room and compare, contrast, discuss. There’s a parallel twitter feed with the recipes (@Mixoloseum) and last night we also had a live video feed from Malo bar in LA where we hosted a barful of LA cocktail enthusiasts and local bloggers. Matt Robold of Rumdood organized the physical event at Malo in L.A. and Gabriel Szazko of Cocktail Nerd and Rick Stutz of Kaiser Penguin. Sam Harrigan of Cocktail Culture worked with Matt to set the gig up. We also had a videographer there and will be making a video for posting on YouTube shortly. Andy Nash, Marketing Director at Pernod Ricard for Kahlua (and Pernod Absinthe)joined to answer questions about the limited edition product (only available in O/N/D this year and officially launching to the public next week. KCC is made from real coffee beans grown, roasted and brewed in Mexico.

What I particularly like about TDN is the collaboration we’ve had with the blogger community. We’ve turned it into a Social Media Marketing program that benefits the bloggers, their readers as well as the brand. Great interactive content in multiple media channels, appropriately commercial but not too, and a whole lot of fun for the cocktail community. Everybody wins.

There’s a counterpart on the wine side called Twitter Taste Live, and we’ll be working on that for Jacob’s Creek wines over the next few months. Oh, and speaking of Jacob’s Creek, we’re holding a “Meet the Winemakers” tasting in NY on Monday next week (Sept. 14) for bloggers and the trade. If you’re interested in attending please let me know and I’ll fill you in on the details.

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