“Digital Darwinism” for wineries who shun Twitter

Wineries who put off using social media will experience “digital Darwinism”, a leading digital expert has warned. “Social media is one of the most powerful customer interaction channels in the world, more relevant than anything seen in human history,” Paul Mabray of winery social media index Vintank told the drinks business. “Those who choose to keep waiting will see their customers migrating to the use of these channels and will experience digital Darwinism,” he added, describing the wine industry as “the last to have not succeeded online.”

Ryan Opaz of wine marketing agency Vrazon believes it's fundamental for wineries to have a presence on social media sites like Twitter and Facebook. “You can’t survive without it, there’s no putting the genie back in the bottle. If you don’t embrace it, you’re back in the Stone Age,” he said.  A recent survey on social media in the French and US wine industries carried out by digital marketing agency ABLE found that 94% of the US wineries surveyed were on Facebook, compared to 53% of French wineries. It also found 73% of US wineries had a Twitter account, compared to just 41% of French wineries.

According to wine communicator Robert McIntosh, medium-sized wineries set to gain the most from social media. “For a medium-sized winey seeking a sales boost, social media can be a great way of getting noticed by an agent or distributor and securing a listing,” he said. But despite their popularity, McIntosh believes new sites will eventually replace Facebook and Twitter. “In the next year or two we’ll see a shift in the way people use social media – the obsession with the number of followers you have on Twitter and “likes” you accrue on Facebook will be replaced by sites focusing on small but meaningful networks of no more than 100 people,” he said.

Rather damningly, Robert Joseph, founder of international consumer research site DoILikeIt?.com, believes winery websites are “some of the worst on the internet”. The majority, he feels, show no understanding of what consumers want. “Most people want to buy a benefit and are asking themselves: ‘Is this wine going to make me look savvy in front of my friends?’ They want reassurance,” he said.

While wineries and merchants may not be getting the design of their websites right, online wine sales are set for considerable growth in the following year. Simon McMurtrie, ceo of Direct Wines, recently revealed that 50% of the company’s UK sales, and 75% of its Hong Kong sales are now online – figures predicted to rise in 2013. 

Blanc: English fizz a contender for world’s best

French celebrity chef Raymond Blanc OBE has got behind English sparkling wine, dubbing it “a serious contender for the world’s best sparking wine.” Speaking at the launch of Brasserie Blanc in Covent Garden, Blanc told the drinks business how the recent leap in quality of English sparking wine could pose a threat to Champagne.

“I visited Camel Valley in Cornwall six months ago and was really impressed, they are making some seriously good sparkling wines and winning a lot of gold medals in the top international competitions. The climate in England is still not quite right yet, and I’ve yet to taste a good Pinot Noir or Merlot from England, but it will come. England is reconnecting with its land – there’s a curiosity there. It’s a young country in terms of winemaking, but it’s steadily building its reputation – it’s exciting,” he said. 

English sparkling wine took centre stage on BBC TV show The Apprentice last week, where contestants were tasked with creating an online advert and website championing English fizz. Shortly after the programme screened on Wednesday night, English Sparkling Wine was trending worldwide on social media site Twitter as a result. 

In terms of Michelin stars, Blanc, the chef patron and part owner of two Michelin-starred country house hotel Le Manoir aux Quat’Saisons in Oxford says he’s never been bothered about them. He said: “I’m not mercenary, I don’t work for stars or ratings, I work for excellence. A star is simply a by-product of the quality, service and consistency you’re giving to your guests every day. Being the best and number one has never been my motivation, there’s more to life.” 

Blanc also revealed that he will be opening up his loos to the public during the Queen’s Diamond Jubilee weekend. “We’re having a big street party down my road in Oxford and I’ve been asked to provide all the patisserie. I’ll also be opening up my loos to the public as they’re big,” he joked. 

Blanc is keen to push wines from small vignerons in South West France in his Brasserie Blanc chain. “Everyone associates Provence with rosé, but there are some excellent Cru Classé reds coming out of the region, which I’m keen to promote. I also want to promote my region – Franche-Comté, so will be pushing Vin Jaune from Jura,” he said.

The key to luxury branding? Saying "no"

Luxury drinks brands need to learn to say “no” more in order to succeed in today’s tough retail climate, according to one of the UK’s leading brand strategists. As reported in the drinks business, Peter Cross (pictured), brand strategist at retail marketing agency Yellowdoor said: “Luxury is about saying “no”. It’s about maintaining exclusivity and scarcity. Brands who are brazen enough to take the high ground will be able to separate themselves from their competitors."

Speaking at the G.H. Mumm and Perrier-Jouët Champagne Assembly at the St Pancras Renaissance Hotel on Friday, Cross warned of the dangers of being too keen to please. “Last year, the luxury industry said yes a lot – to new markets, new categories and regional thinking – it bent over backwards to allow consumers to have it their way. But people want something even more when they can’t have it,” he said.

Cross stressed however, that retaining exclusivity is not enough. You have to have integrity, values, a story to tell, and a clearly defined place in the market,” he said, citing the economic crisis and the digital revolution as having changed the way we shop. “Luxury items have shifted from being out of reach to being accessible, and we expect brands to filter into our everyday lives. With consumer knowledge up and blogs and Twitter taken more seriously, today’s shoppers are empowered,” he warned.

Cross ended his speech by speaking of the extraordinary power of goodwill gestures. “Small gifts, like extra laces with a pair of Churches shoes, can make all the difference and inspire brand loyalty. Understanding the subtleties of selling is crucial,” he said. Meanwhile, Pierre Aymeric du Cray, global sales director of G.H. Mumm and Perrier-Jouët, spoke of moving beyond the “bling” era in Champagne.

“Consumers are less inclined to buy luxury brands as status symbols to show off with, and are instead looking for genuine brand values,” he said. “Today’s consumers want a sense of timelessness in the luxury goods they buy – something they can pass on to the next generation,” he added, citing personal customer relationships as key to success in 2012. “Consumers are looking for a sense of belonging, to feel part of the brands’ family. 2012 will be all about craftsmanship,” he said.

Ones to Watch in 2012

thedrinksbusiness.com brings you a quintet of rising stars set to impact upon consumer luxury wine and spirits spend in 2012.

Peter Sisseck, Age: 49

Danish-born Sisseck is the creator and owner of cult Spanish wine Pingus (from Ribera del Duero), which has been ranked as the highest scoring wine by Robert Parker for the last five years according to the Liv-ex Power 100. Parker declared Pingus’ first vintage (1995) “one of the greatest and most exciting wines I have ever tasted.” No more than 8,500 bottles of are produced each year, which sell for more than £400 a piece. Sisseck’s second wine, Flor de Pingus, is also proving popular with Parkerites. The great Dane’s uncle, Peter Vinding-Diers, transformed the quality of white Graves in the ‘80s, perhaps explaining why Sisseck has branched out to St Emilion, where he runs the biodynamic estate Château de Rocheyron.

Lady Gaga, Age: 25

The eccentric singer topped this year’s Forbes celebrity list, with an estimated net worth of US$90m. Representing the power of celebrity endorsement in the luxury wine and spirits sphere, I could have chosen a number of world-famous stars, but Gaga made the cut for being the most talked about and photographed celebrity of the moment. Often tweeting about her love of wine to her 16m Twitter followers, the Italian American songstress could start a luxury drinks trend at the drop of one of her Philip Tracey hats. She hasn’t yet, but she could.

Yao Ming, Age: 31

Last month, the Chinese NBA basketball star announced plans to release “Yao Ming” wine in China at £384 a bottle. The Shanghai-born sports star, worth more than US$65 million, has ventured into wine just months after retiring from basketball to meet a growing thirst for wine in his home country. Yao Family Wines use grapes from six vineyards in the Napa Valley, though Ming also owns a winery in Napa. The first batch of “Yao Ming” is a 2009 Napa Cabernet Sauvignon. Magnums of the wine are expected to sell for £6,000 at an upcoming charity auction in China.

Erik Lorincz, Age: 31

Last year, the Slovakian-born head bartender at the newly reopened American Bar at The Savoy, out-mixed, out-stirred and out-shook 9,000 bartenders to win the Diageo Reserve World Class Bartender of the Year competition, leading him to be dubbed “the best bartender in the world” by the Wall Street Journal. This year he was crowned International Bartender of the Year at the prestigious Tales of the Cocktail 5th Annual Spirits Awards in New Orleans. Before The American Bar, Lorincz was working his shaker at The Connaught Bar. Catch him in the capital while you still can...

Wu Fei, Age: 41

The general manager of the wine and spirits branch of COFCO, China’s largest oils and food trader, plans to aggressively expand the company’s vineyard ownership overseas on the heels of two recent purchases, with sights set on Australia and the United States. COFCO has been expanding internationally to diversify its portfolio and compete with international brands. It purchased Château Viaud in Lalande de Pomerol for US$15m in February. Fei is in charge of umbrella brand The Great Wall, China’s most famous wine brand worth €1.4 billion, which sells 120m bottles a year.

Dom Pérignon 2003 launched in five cities

Last week, as reported on thedrinksbusiness.com, Champagne giant Dom Pérignon hosted five simultaneous international events in London, Hong Kong, Paris, New York and Tokyo, to launch its 2003 vintage – a controversial release due to the extreme heat of the year. With each event linked by satellite, chef de cave Richard Geoffroy introduced the wine Star Wars-style via hologram, appearing as an electric blue spectral figure and answering questions on the vintage from the five cities in turn.

“Everyone was expecting a very powerful, sun-filled and rapidly maturing wine – a real challenge for the creation of Dom Pérignon,” Geoffroy told us. “It was a risk, which may be rewarded now. It’s at the heart of the house’s values – we’re committed to vintage Champagne. My wish is for Dom Pérignon 2003 to remain one of the greatest examples of the vintage in the history of Champagne.”

Guests in London gathered at the über swish Phillips de Pury auction house in St James’s, where black-and-white stills of the Dom Pérignon vineyards in Hautvilliers were projected onto the whitewashed walls, along with an up-to-the-second Twitter feed from invitees across the five cities. In between sips of the freshly released ’03, we were treated to whipped truffled egg, caviar on beetroot jelly, and seared foie gras.

The 2003 vintage left an indelible mark on the region. After a cold, harsh winter, the initial warmth of spring proved deceptive. On 11 April a severe frost destroyed up to 75% of the Côte des Blancs Chardonnay crop. The unseasonal spring was followed by a heat wave as the region experienced its hottest summer for 53 years, resulting in the earliest Champagne harvest since 1822.

Undeterred, Geoffroy embraced the challenge: “At no moment in time was there any question of giving up. Instead, we seized the opportunity to create the 2003 vintage,” he said, adding, “Intensity is the signature 2003. It’s unique and paradoxical, hovering between austerity and generosity. It has tremendous ageing potential, but is also very enjoyable now as it’s so expressive.” Commenting on the 2011 vintage, Geoffroy was less upbeat: “2011 was less spectacular than 2003, it will be hard to predict how it will mature.” Dom Pérignon 2003 will be available in the UK from February 2012 with an RRP of £120.

The Drinks Business

So we're a week into the new year, and I'm four days into a new job. The sense of a new beginning brought about by the new year has been heightened in 2011 by a change of employer. I left Decanter magazine before Christmas and started as staff writer at The Drinks Business this week, which recently celebrated its 100th issue.

It's an exciting move for me – the company is young, dynamic and forward thinking, and my new role will give me the freedom and time to do more of what I love – writing. It's a fascinating time for the wine industry. The landscape is changing – who is buying wine, what they're buying, where they're buying it, and how we're communicating about it is in a constant state of flux. We are finally seeing the democratisation of wine, both in terms of who's buying it, and who's writing about it.

Wine is no longer the reserve of middle-aged, middle class, white men. The doors have been flung open and everybody wants a slice of the action. Wine may be enjoying its moment in the sun, and with the revival of the wine bar in London, championed by the likes of Terroirs, 28-50, Vinoteca, Kensington Wine Rooms and more recently Bar Battu and Brawn, this trend is showing no signs of slowing.

So with these exciting times, we need publications that are at the forefront of these changes. We need wine writing to reflect what's going on in the industry – to hold a mirror up to the truth. This week The Drinks Business surpassed 1,000 followers on Twitter. A mini milestone, but a significant one. For any business to flourish in 2011, it can't afford to be out of the loop, and the loop is very much entwined with social media right now. As a society, we are growing ever more impatient. We have come to expect a constant stream of information to be communicated to us the minute it happens. A magazine simply can't do this, so tools like Twitter, Facebook and Youtube are becoming an ever-important way to bridge the communication gap.

So that's where our focus will lie at db as we move further into 2011. I'm intrigued to see what the year has in store for the wine world, and am excited about being able to play an interactive part in these changes – to communicate them as they happen, and contribute to the debate. The new year is a time of hope and reflection. A chance to wipe the slate clean and turn things around. With my new year has come change, which is essential for a fulfilling existence. 'There is no greater joy than to have an endlessly changing horizon, for each day to have a new and different sun' – Christopher McCandless.

Inamo St James

Apologies, dear reader(s), for the three week hiatus. December always seems to whiz by in a flurry of festive obligations. At the start of the month I was offered the job of Staff Writer at The Drinks Business, which I will begin in the new year, so the month has been spent tying up loose ends at Decanter, which I bade a fond farewell to last week.

Aside from moving jobs, December has also been characteristically busy on the event front. Earlier this month, when the first bout of snow hit London, I ventured out into the white night layered up like a mille-feuille to attend the launch of Inamo St James. Arriving fashionably late, the 300-cover Regent Street restaurant was heaving. Standing in line, I noted familiar foodie faces interspersed with the odd celeb - model David Gandy acted as an alluring window display, while son of Salman, Zafar Rushdie, was busy entertaining a Sloaney blonde.

I found my dining companion, David Joseph Constable, sinking a saké Mojito at the bamboo bar. We were swiftly ushered through the sprawling space to our electronic table by a statuesque waitress in leopard print. Billed on its website as an 'Oriental fusion restaurant with influences from Japan, China, Thailand, Korea and beyond' (wherever that might be), Inamo's USP is its interactive ordering system. Diners are in control of their culinary destinies and are at liberty to order as much or as little as they desire from the electronic menu over the course of an evening.

The E-Table technology also allows you to choose your virtual tablecloth colour and design, spy on the chefs at work through the Chef Cam, and even book a taxi home. In a spectacular display of generosity (it being the press night), we were given free reign on the menu, simply split into 'small dishes', 'large dishes' and 'deserts'. The first five minutes of my Inamo experience were happily spent in silence, exploring all the E-Table's functions. My opening move was to turn our tablecloth a tasteful shade of violet, then, at the push of a button, I ordered two raspberry lemon cooler cocktails, which dutifully appeared at our table mere minutes later.

Inamo is ideal for the techno-savvy Twitter generation. There's enough on the table to entertain you to render polite conversation with your dining partner obsolete. And if you did desire to communicate, you could always send them a text, or even better, a Tweet, from across the table. Aware of my anti-social behaviour, I engage David in conversation, proposing that we order some starters. 'I've already ordered three, I think', David replies. And that's the thing. It's impossible not to fall prey to kid in a candy shop over exuberance at Inamo, making it a dangerous place for diners lacking in self restraint.

So the starters arrived in their droves. We tried bite-sized baby crispy prawns served, chippy style, in a paper cone, transparent slithers of kelp marinated sea bass (pictured) served with shiso and soy, which were slightly smoked and utterly moorish, seared tuna coated in black bean and wasabi with creamy cucumber miso, seared scallops with a lifted, lemony Yuzu dressing, Dragon rolls filled with tiger prawns and crab salad, pencil shaving thin slices of marbled beef with truffle vinaigrette and (finally) yellow tail sashimi in a sweet soy, truffle sauce.

Considering the restaurant was operating at full capacity, serving hoards of hungry, sharp-fanged journalists, the standard of the starters was impressively high. Some dishes, like the scallops, failed to reach the standard I have come to expect in London, but others, like the sea bass, yellow tail sashimi and marbled beef, were unique, exciting and extremely well executed. I often find myself more allured by starters than mains in restaurants, preferring to experience a little of a lot, than a lot of a little. Nevertheless, we felt it only right to sample a decent selection of mains, if only for a rounded overview of the cuisine on offer.

David fired up the 'larger dishes' menu on our E-Table, and started placing orders. I did the same. This is ill-advised, as we ended up with three mammoth salmon dishes glaring at us for the remainder of the evening. The main event included exquisitely cooked silky black cod in spicy miso that fell off the fork, soft, creamy, saké salmon cooked in cedar wood and served in a deliciously rich Hollandaise sauce, zesty, juicy, orange-fueled Tamarind duck breast and pan fried salmon glazed with Javanese sugar, which decency forced me to abstain from.

Quite how we found room for pudding is astounding, but it was worth fitting in. My vanilla-flecked strawberry crème Brûlée topped with mint was the highlight of the evening. Our overenthusiastic ordering resulted in an eye-watering £180 bill, but an equally fulfilling meal can be had at Inamo for a fraction of the price, and the progress of your bill can be checked at any stage by pushing the 'calculate bill' button.

Inamo St James will be a success. It's modern, stylish and faddy, like London itself. On our visit, the house music was booming and bar buzzing with trendy types sipping chic cocktails and milling about next to the tables. A number of the diners seemed irked by this, and rightly so. The drinking and dining spaces at Inamo need to be more clearly defined. Like Kyashii in Covent Garden and Aqua in Oxford Circus, there's something of the 'clubaurant' about it. It's an ideal place to take a date with whom you fear conversation may dry up. And if it does, you can book a taxi and make a quick exit without saying a word.

Fine Wine 2010, Ribera del Duero

The theme of storytelling continued with Ernie Loosen, who urged winemakers to stand for 'quality' and 'tradition' - the backbone of a brand.

He ended with the suggestion of 'marketing through the liver', and the importance for winemakers to tell a story. 'Get out there, tell the story and be the story', he passionately proclaimed.

Next up was Ryan Opaz, creator of Spanish wine blog Catavino, who warned winemakers would miss out if they weren't online. 'Consumers want to feel they matter - your biggest peril is invisibility. If you want to sell wine, you have to get online and connect'.

Backing up the importance of social media touched upon by Mark Beringer, the conference was fast becoming a technofest, with facebook, twitter and blogs all cited as the way forward for the wine world. The press even took to tweeting speakers' comments as they happened, creating up-to-the-second updates for their followers.

Michael Mondavi then took to the stage and optimistically declared that 'we are entering the platinum years of wine, full of opportunity'. Mondavi spoke of the importance of cooperation and family-run wineries. 'The future of the wine industry lies in private ownership and people with the desire to build things for the next generation, not just the first quarter’.

He also warned that restaurants will be in trouble if they carry on marking up their wines by 400%. ‘Consumers know what wine costs. Restaurants have to rethink their pricing policies. High marks ups won’t be able to survive for much longer.’

Speaking of the oversupply crisis in California, Mondavi, who imports fine wine into the US through his company Folio Fine Wine Partners, said foreign imports didn't pose a threat to the domestic market. ‘Fine wine imports are competition for California, but the only thing that will hurt California is bad winemaking in the region.’

Finally, Hunter Valley Semillon pioneer Bruce Tyrrell took to the stage and treated us to such gems as: 'The slightest bit of cork taint on a Semillon stands out like a dunny on a ridge'. Telling it like it is, Tyrrell was quick to admit that Australia is in trouble. ‘A lot of vineyards are being demolished and the coal miners are buying them up, but no great vineyards will be lost. On the one hand we’ve got the government pushing a sustainability initiative, and on the other we’ve got vineyards being turned into mining sites'.

Tyrrell spoke of Australia's need to re-engage with the fine wine market and develop consumer knowledge of regionality. Like Mondavi, Tyrrell stressed that fine wine will come increasingly from family-based wineries, or 'farmers with a face' as he dubbed them, and urged winemakers to make more use of the cellar door as a means of sharing a glass with consumers and telling your story. 'Direct communication with the consumer cuts out the middle man', he said.

Listening to all the speeches, it became clear that the future of fine wine lies in family-run wineries, not faceless corporations who only care about profit margins. For fine wine to survive, wineries have to be kept privately owned, and for them to thrive, they need to engage directly with their consumers through the cellar door and social media.

The world is getting smaller and the wine world can't afford to be left out of the online debate. The internet offers a direct route to consumers, and a chance to listen to what they have to say. Those who fail to take an interest will surely suffer. 2010 will see the democratization of wine, which can only be for the good.

Fine Wine 2010, Ribera del Duero

I've just got back from three intense and exciting days at the Fine Wine 2010 conference in Ribera del Duero organized by market research company Wine Intelligence.

The conference drew some of the wine world's big guns, including Michael Mondavi, Olivier Krug, Serge Hochar and Ernst Loosen, who all tried to define the term 'fine wine' and what it means for the consumer.

Fresh from judging at the IWC, Tim Atkin MW opened the conference with an engaging speech urging for a new definition of the term 'fine wine' beyond Bordeaux and called for an end to the wine world's obsession with Bordeaux, or 'Bordeaux-itis' as he christened it.

Atkin warned about the wine world becoming like Wall Street, accusing investors of losing sight of wine's true purpose: ‘Fine wine is becoming a source of investment. We’ve lost sight of what wine is all about – pulling a cork and enjoying it with friends. Wine is in danger of turning into a commodity to be traded’.

He also accused wine writers, particularly American journalists, of talking about wines with 'an absence of context’ and only considering what was in the bottle. ‘American wine writers have forgotten where wine comes from. I find it unbelievable that Robert Parker only visited Spain for the first time last year.' The speech ended with a call to arms for journalists to travel to where the wine is made and get out into the vines - to experience the terroir first hand.

Fifth generation winemaker Mark Beringer, currently at the helm of Artesa Vineyards in Carneros, talked about a desire for simplicity in winemaking and going 'back to basics'. He touched on the increasing importance of organic, sustainable winemaking, and a growing trend for vegetarian and vegan wines.

According to Beringer, 2010 is a golden time for consumers, who look set to benefit from the dramatic discounting taking place in California. 'There is great value coming out of California at the moment. With less wine bring made at the premium level, the top wines are moving down through the pyramid and becoming more affordable'.

'Pricing is a real issue in Napa as there isn't much middle ground. The top wines aren't selling and are leaving wineries in a mess. It's great news for the consumer. Winemakers are becoming even more selective, and the reserve wines are truly reserve quality'. Beringer ended by stressing the importance of social media as a way of reaching out to consumers, taking a picture of fellow speakers Serge Hochar, Pablo Alvarez and Olivier Krug and posting it on twitter as he spoke.

Serge Hochar of Château Musar described fine wine as 'a state of mind', but conceded that a fine wine needed 'elegance, finesse, complexity and ageing potential' - recurring buzz words during the conference. He spoke of the globalization of the wine world, the importance of emerging markets like China and India, and the need for winemakers to visit these places to tell their story. Hochar also called for transparency in winemaking, and a need to make wines 'without edifice or make-up'.

Pablo Alvarez, of icon Spanish estate Vega Sicilia, spoke of the need for Spain to learn how to market their wines better, and to shout about them more unashamedly. Imbuing wines with personality was paramount, he said, as grape character is the only thing that can't be copied. Alvarez called for Spanish winemakers to get their wines out on the global stage and give them more of a presence, as phenomenal wines are coming out of the country.