Feb 5, 201409:58 AM
Happy Hour

All there is to sip and savor in New Orleans

Wine News You Should Know

Media outlets are not telling the whole story when it comes to these wine issues.

mdixon, stock.xchng, 2007

It does not appear that the news media is capable of covering more than one story, or one side of one story, at the same time, when maybe offering other views or alternative “facts” would be a reasonable expectation by the reader.

The standard news cycle today, while maddeningly short in many cases, is all about Side One. And every news reporting organization will play the tale for a small amount of time for all it is worth. Then a few weeks later, we are exposed to Side Two, a completely different, maybe even opposite explanation of the situation. Even then a tale that should die an early death is stretched out interminably and without the addition of new news value.

Some stories live far beyond their expiration date. It’s the result of too many news outlets and a deficit of quality news gatherers. I prefer not to offer names. I have to work in this business and if I show up at the club after naming names they might take away my keyboard. The horror!

Here are a couple of items from the adult beverage world that demonstrate my points:

Item 1
The headline in the latest issue of Nation’s Restaurant News, among other publications, notes, “Restaurant Sales, Traffic Dip in December.”

The resulting story paints a slightly different viewpoint, and the “dip” is only about 0.6 percent when compared with the previous month, November. The sky, in other words, is not falling. Matters are “flat” but the dip is not disastrous.

But the other story that remains untold here is that at-home consumption of wines and spirits is up significantly. And here is where, in my opinion, the real story is located, and which the press has largely ignored.

Restaurants that charge high prices for wines and cocktails are not doing themselves or their patrons any favors. People today know what a beverage really costs. They can literally sit at a restaurant table, look at the wine list, pull out their phones, and check the actual retail price of the wines listed on the wine list. They now know not only the high mark-up of the wine on the list, but they also realize that the price that is coming up on the cell phone is a retail price. The restaurant is paying less than the retail price. They buy at wholesale.

No one is against anyone making a decent profit, but a restaurant charging for a bottle of wine 2.5-3 times the retail cost is making way too much profit on just one item. The consuming public knows this. Even those dining patrons that pay the price for a bottle of wine do so begrudgingly. And maybe the patron purchases only one bottle instead of a desired two.

The restaurant is also fighting another dynamic: the stricter enforcement by police of driving while intoxicated laws. If a driver demonstrates any sign of impairment, or if another law is broken and the police discover the driver is also over the legal limit, there will be hell to pay. The penalties for DUI are tougher than ever and the leeway the police are allowed is minimal.

So, higher prices for products in restaurants and the stricter enforcement of DUI laws now contributes to more consumption taking place at home. The advantages are obvious. The price for the wine/spirit is cheaper and there is no car involved.

Home consumption is measurably up while restaurants are faced with tables that are empty or being forced into earlier closing due to no late dining.

The wine and spirits industry are selling more products, just not to the usual customers through the usual channels.

Item 2
California is in the worst drought in more than 500 years, according to every source, including B. Lynn Ingram, a professor of earth and planetary sciences at the University of California, Berkeley. Camping and fishing have been outlawed in much of the state and some communities are down to a 60-day supply of potable water.

In order to grow grapes, some water is needed. In order to keep wineries clean, a lot of water is needed. Those water supplies are in very short inventory.

But in both 2012 and in 2013, the wine grape crop came in at record levels. There’s a lot of juice out there ready to head to market as wine, most at historically low pricing.

On the one hand the media is reporting out the terrible and continually unfolding results of the drought. On the other hand, the wine industry is churning out prodigious amounts of top-quality product. And both circumstances, because you can see the proof, are correct.

There are predictions of a grape shortage because of the drought. Likely won’t happen. Wineries usually take control of their own water, saved in ponds on their own property. They can take a whole year to fill the ponds, even using water from underground resources and aquifers. There is no panic. Unless you count the fact that vehicles are going to be covered with dirt from infrequent washings and even less frequent rains.

Producing grapes in record quantities in the middle of a drought? Declining restaurant sales as wineries produce higher quantities of product?

The legendary news commentator, Paul Harvey, said it best: "And now, you know the rest of the story."

 

-30-      

Reader Comments:
Feb 7, 2014 09:35 am
 Posted by  noblewines

The wine industry as a whole is evolving and adjusting to all the changes in how wine is purchased and communicated. Technology has been very slow to make an impact in alcohol due to all the State & Fed laws. Anyone who has worked in the restaurant industry knows how slowly that industry evolves as well.

I agree that pricing and tech is effecting the way patron view wine prices at restaurants but there is more to the story. And as a restaurant wine consultant... I believe that smaller profit on a bottle that is actually bought and consumed is better than a cellar full of higher profit wines that collect dust.
Prior to 2005 the typical mark-up on wine in retail was 50% above the wholesale cost. After 2005 web-sales started to change that and it now is an average that is closer to 20%. Web-retailers do this to attract customers. They also do this on very large brands with large quantity deals, deals that many restaurants can't afford or have storage room for. At wholesale the one case price for say Kendall-Jackson Chardonnay is probably higher than 20% mark-up on the 100 case deal a store will buy and advertise. Same story for Santa Margherita Pinot Grigio.

To me the most important Restaurant wine experience is discovery. Most wine drinkers buy brands at stores as those have the biggest push and discounting. Restaurants that offer a good wine program with educated waitstaff and an interesting wine by the glass program help wine consumers discover their own palates and new wines. Discovery is the greatest thing about drinking wine, discovering grapes and places.

Add your comment:


Happy Hour

All there is to sip and savor in New Orleans

about

In New Orleans, when the subject is wine and spirits, it is very difficult to leave Tim McNally out of the discussion. He is considered one of the “go-to” resources in the Crescent City for counsel and information about adult beverages and their place in the fabric of life in this great city.

Tim is the Wine and Spirits Editor, columnist and feature writer for New Orleans Magazine; the Wine and Spirits Editor and Happy Hour blogger for myneworleans.com; the Executive Editor and monthly features writer for Gulf Coast Wine + Dine Online; creator and editor of his own website, winetalknola.com; all in addition to his weekly hosting duties on "The Wine Show," a radio program entering its second decade of broadcasting in New Orleans. "The Wine Show with Tim McNally," is on the air at WGSO – 990AM, every Friday at 5 p.m.

Over the years, Tim has proved to be a master interviewer, putting his guests at ease, and covering tactile and technical information so that even a novice can understand difficult agricultural and production concepts. Tim speaks with winemakers, wine and spirit ambassadors, distillers, authors, people who stage events and festivals, and takes questions from listeners and readers, all seamlessly blended together in a program that is unique in America.

Tim’s love of wine came about many years ago from his wife-to-be, Brenda Maitland, a noted journalist in her own right, and together they have traveled to the major wine producing areas in the US and Europe, seeking first-hand information about beverages that give us all so much pleasure.

The couple was instrumental in the founding of the New Orleans Wine and Food Experience, a major, well-regarded festival of its type both nationally and internationally. Tim and Brenda both continue to be involved with the planning and staging of this multi-venue, five-day event now more than 20 years old.

Tim is also considered one of the foremost professional wine judges in the US, being invited to judge more than 11 wine competitions each year, including the San Francisco Chronicle Wine Competition (the largest competition of American wines in the world, with more than 6,000 entries), the Riverside, CA International Wine Competition, San Francisco International Wine Competition, Atlantic Seaboard Wine Competition, Indiana International Wine Competition, Sandestin, FL Wine Festival Competition, U.S. National Wine Competition, and the National Wine Competition of Portugal.

Tim is a guest lecturer to many local wine and dine organizations, and speaks each year to the senior class in the School of Hotel and Restaurant Management at Auburn University in Auburn, Ala.

Staying abreast of the news of the wine and spirits world is a passion for Tim, and he is committed to sharing what he knows with his listeners and readers. “Doing something I love, with products that I truly enjoy, created by interesting people, coupling the experience with culinary excellence, and doing it all in the greatest city in America,” are the words Tim lives by.

You can reach Tim by email at timideas@bellsouth.net.

recent

archive

feed

Atom Feed Subscribe to the Happy Hour Feed »