GREAT VIDEO PUNT OF WARWICK 'THE FIRST LADY' BY SIMON WOODS ON 'DRINKING OUTSIDE THE BOX!!

The Warwick wedding cup taking shape

Mike Ratcliffe
Warwick Estate & Vilafonte
P.O.Box 2 Elsenburg, 7607, South Africa

FOLLOW ME ON TWITTER www.twitter.com/mikeratcliffe

Platter 2010 Warwick - well done everyone

 

MARKETING REFLECTS CHANGING DEMAND OF NAPA VALLEY WINE

More than a year into the economic downturn, Napa Valley vintners are looking toward the future. “I think that we’re already starting to see a little bit of a turnaround as far as wine sales go,” St. Helena winery owner Kent Rasmussen said. Wine drinkers are buying more readily than they did a few months ago, he said, and retailers and restaurateurs are finally stocking up again. During the second quarter of 2009 — the last quarter for which information on sales tax revenue is available — winery sales in Napa County actually rose 3.9 percent over the second quarter of 2008. Spring 2008 was about the time that wine sales in Napa County first started to slip. Now, vintners are waiting on the holidays, when the bulk of their wine is sold, to see if there’s reason to be optimistic. “The fourth quarter is when the thing really crashed last year, so you better see a darn good increase this year, because a good portion of our production is sold during the holidays,” said Jack Cakebread, owner of Cakebread Cellars in Rutherford. “This is sort of the crunch time,” Napa Valley Vintners spokesman Terry Hall said, “because the fourth quarter really is the most active sales period for wine.”

 

The new ‘normal’

Regardless of how things go this winter, some say the Napa Valley wine industry may have changed forever. “I don’t think it can go back to normal,” Calistoga winery owner Laura Zahtila said. “I think we’ll have a new normal.” New Jersey wine merchant Gary Fisch agrees. “It will never be like it was,” he said, “and boy, did I like what it was.” Deborah Steinthal, founder of Napa-based Scion Advisors, predicts that $75 wines will move down permanently to $50, and Napa Valley wineries will be forced to reconsider their luxury-only portfolios. “I think we’ve got about three to five years to redefine our position in the world of wine,” she said, “and that means not just in terms of proving we can sell as much wine in the categories we’ve been selling in the past.” Ultra-premium wine producers could have an especially hard time if wine buyers permanently tighten their belts. “I think there’s going to be a lot less cult cab out there,” Zahtila said. “I think that wineries need to get realistic about what people should be and are willing to pay for their wine.” Bill Harlan, whose Harlan Estates wines go for up to $500 a bottle online, said he expects a shakeout in the next three to five years among cult wine producers, but he adds that those who survive will come out even stronger.

“I feel that if we stay the course and continue to work on producing better and better wines and build relationships one-by-one, then things will come back,” he said. Relationships may be the key to success, according to industry officials. As people change the way they buy wine, and as distributors change the way they sell it, wineries are beginning to focus more on selling directly to consumers than relying on other retail channels. “National distribution makes sense for some wineries, but direct is more critical to survival and growth,” Steinthal said. This may mean a new approach to marketing, one that emphasizes personal relationships with consumers. “If we just keep doing things as we have done in the past and hope things will eventually come around to the way they were 10 or 20 years ago, I think many businesses will be sadly surprised at the outcome,” said Ed Matovcik, vice president of Foster’s Wine Estates, and one of a group of wine industry representatives lobbying for fewer restrictions on local winery marketing events. Winemaker Mike Grgich said he believes that Napa Valley is entering “a new chapter of the wine industry.” “We can learn from this,” he said, “(but) we have to work hard and smart and learn new ways of marketing.” Some vintners say this means more than just changing their marketing techniques, it means changing to whom they market.

The younger generation.

Especially as Baby Boomers retire and cut back on their wine purchases, some wineries are starting to focus marketing efforts on the younger generation of wine buyers, including those born approximately from 1980 to 2000, known as the “millennials.” “The millennial category is really stepping up,” Steinthal said, “and wineries are learning how to market to millennials. Folks are really thinking through how to leverage the next generation of their family with a new category of customers, a new generation of customers.” Ceja Vineyards, for example, is one of the few wineries in Napa County that is actually expanding right now, and winery president Amelia Ceja attributes its success in large part to her children. “I have three children in their early 20s and they’re big on all the new technology and on the Internet,” Ceja said, “so that has been extremely helpful. We don’t do a lot of advertising, but our presence on online social sites has helped. We do a lot of videos and marketing on Facebook and Twitter.” Ceja said she and her children spend about an hour a day using Web 2.0 tools and social networking sites to market their wines. “It’s knowing what the customer wants and how to capture that customer’s attention,” she said, “and people are attracted to the millennials.” Ultimately, those who are quick to adapt may actually come out stronger than they were before the economic downturn. “In any kind of downtime, the industry gets stronger,” Steinthal said. “The innovators really show up, and so unfortunately, it means some folks drop out, but for the long-term health of the industry, the strong get stronger. Fisch agrees. “We’re entering a new economic age, and the people that can change and adjust will thrive,” he said. “The people that stick their head in the sand and say, ‘This is the way we’ve always done it and this is the way it will continue,’ I think will have challenges.”

Ken Forrester at the WOSA USA conference

Mike Ratcliffe
Warwick Estate & Vilafonte
P.O.Box 2 Elsenburg, 7607, South Africa

FOLLOW ME ON TWITTER www.twitter.com/mikeratcliffe

ROOTSTOCK: IS THE GRASS GREENER ON THE OTHER SIDE?

Rootstock invites you to our last event of 2009. We explore GREEN ISSUES in the winelands, viz Organic , Biodynamic , Bio-logic  and Carbon Neutral . Join us to hear from our panel of producers how they are applying their approaches, and what they are doing to make a difference to our environment. Participate in the panel discussion which will ensue. We encourage active debate from all present. We can all learn from their experiences, and invite you to ask questions, in fact if you would like to email questions to us before the event - we will pass them on to the speakers. Emails to info@rootstock.co.za. Our panel consists of:

• Michael Back from Backsberg on their Carbon Neutral work
• Michelle du Preez from Bon Cap on their organic production
• Johnathan Grieve from Avondale on their Bio-Logic approach
• Johan Reyneke from Reyneke Wines on his Biodynamic approach.

If you would like to contribute to the discussion - feel free to participate after they have made their 10 minute presentations.

• How do these approaches differ? How are they the same?
• What impact are they making on their environment?
• What impact are we making on the environment but not adopting similar approaches?

Bookings are essential through http://www.rootstock.co.za/ ONLINE only. You need to register with Rootstock to attend. Rootstock membership is free - but you pay for events attended.

• Date: TUES 24th NOV 2009
• Time: 5.30pm for 6pm start until about 8.30pm
• Venue: Backsberg Estate (thanks to them for making their venue available and providing wines)
• Cost: R50 (to cover snacks) - bring cash with you

If you book and do not attend - you will still be invoiced accordingly. For any urgent matters please contact Judy Brower on 083 301 8569 or email info@rootstock.co.za

JOIN US FOR XMAS DINNER

Join Mike Ratcliffe at The Butcher Block Executive Grill for a decadent, but fun and relaxing evening in the company of the passionate members of the Warwick Wine Family. We look forward to a great evening of good food and wine. Book now!

Venue: The Butcher Block Executive Grill, Rosebank Hotel
Date: 18 November 2009
Time: 7.00pm for 7.30pm
Cost: R325.00 per person
Dress: Smart casual
Menu:Please click HERE
RSVP:colleen@warwickwine.com

PROGRESS IS BEING MADE!

The foundation is in for the new 'Wedding Cup' fountain
The new Kitchen and restroom wing is almost done.

Ronald Spies directing operations in our massive lanscaping project

The skeleton of the new Warwick 'Bistro' is nearing structural completion.

A sneak preview of the 'picnic pods' being built for the Warwick Gourmet Picnic. Opening soon - December 1st.

Mike Ratcliffe & Chef Bruce Robertson celebrate the final touches being put to the menu for the 'Warwick Gourmet Picnic'. Opening soon - December 1st 2009.

WARWICK 'BLACK LADY' SYRAH

COMING SOON ...

01-11-09

Only available from wineclub@warwickwine.com

Limit 6 bottles per person.

LIQUID BLACK LADIES

by NEIL PENDOCK - PENDOCK UNCORKED

Dark ladies are dreadfully overrated. Shakespeare’s sonnets # 127-152, written to the Dark Lady, were described by William Wordsworth (or Turdsworth as Lord Byron disrespectfully nicknamed him) as “worse than a puzzle-peg. They are abominably harsh, obscure & worthless.”
So Dennis Kerrison obviously didn’t have them in mind when he named his Doolhof 2008 Pinotage Dark Lady, as harshness is a fault often pinned on Pinotage as are some of the comments from critics. Perhaps cockney Dennis had Welsh rocker Tom Jones in mind and his classic ballad Dark Lady about the Fortune Queen of New Orleans and her black cat. But after seeing a bleary-eyed Tom interviewed on Sky News the day Michael Jackson passed, associating a wine with Tom would attract only necrophiliacs.
Now along comes Mike Ratcliffe with a Black Lady Syrah 2006 from Warwick. The estate has a whole harem of ladies in the tasting room: Three Cape Ladies, First Lady and now a Black one, presumably connected to Professor Black of Sauvignon Blanc fame? Or a special bottling for Barbara Amiel, socialite and wife of jailed publisher Lord Conrad Black perhaps?
This rush to anthropomorphize wine is nothing new. Pinot Noirs have long been classified into masculine and feminine styles so it makes perfect sense for a Pinotage, which is a 50% Pinot Noir offspring, to be compared to a Dark Lady. Mike is nothing if not a canny marketer and with tourists the Holy Grail for the top end of the market he is clearly getting in early with a brand that rings more bells than Quasimodo.

Warwick 'Black Lady' Syrah label printing - at the press

Mike Ratcliffe
Warwick Estate & Vilafonte
P.O.Box 2 Elsenburg, 7607, South Africa

FOLLOW ME ON TWITTER www.twitter.com/mikeratcliffe

One of our dear Wine Family members sipping her favourite Warwick 'Professor Black' Sauvignon Blanc while on vacation in the Greek Islands.... Wish we were there to share a glass, or 2 with you Mrs Wilson....

Letter to the Business Day by Jeremy Sampson, Executive Chairman of Interbrand Sampson

Back in your wine box, elitist critic

The letter, Quality wine in a box (September 21), highlights much of what is wrong with the wine industry. We hear of wine lakes on the one hand yet the price of wine continues its steady climb. Wine farmers plead poverty, and yet we are continuously presented with pictures of the great and the good unashamedly enjoying the life of Riley . Your wine columnist continues to opine in his quaint, elitist style, as if anyone who can’t afford a bottle at R150, or was it R1500-plus, is beneath him. Many wine writers give the impression that nothing below a certain price point will ever contaminate their nostrils, let alone their lips. Let’s get real here. Between boxed “carafe quality” and auction wines there is a whole array of, shall I call them “sumptuous, luscious, mouth- filling, affordable wines”? SA is truly blessed. Travel to Europe or the US at the moment. Many retailers are fighting for survival in these difficult times. While often avoiding discounting of brands, a marketing no-no, they are putting together “special offers”, co-branded deals, BOGOF s (buy one or two, get one free), and trying to maintain their relationship with their consumers by delivering value at affordable prices. Marketers should know that relationships that survive difficult times are potentially even better in the good times. Nothing wrong in trading down. Values such as trust, integrity and transparency are never to be taken for granted.

Apart from the Sunday Times wine fundi, who has the confidence and knowledge to recommend wines from as little as R25 a bottle, most of the other writers deserve to be put back in their elitist boxes. If the wine industry wants to maintain, let alone grow, its “share of throat”, it will need to change.
Jeremy Sampson

Is South Africa about to adjust it’s positioning?

WINE.CO.ZA readers receive daily (sporadic) blog postings from the UK. Occasional contributor Mike Ratcliffe, the MD of Warwick Wine Estate and the American joint venture winery, Vilafonte, sends live updates and photos of what's hot and happening at the this year's Mega Tasting punctuated with personal observation and irreverent thoughts. This posting was written on the high-speed Virgin train between London and Glasgow - via wifi. Follow Mike on Twitter www.twitter.com/mikeratcliffe

The second day at the WOSA Mega-tasting was kind of like the first day, except that it was 24 hours later and I was feeling that much more exhausted. There was nothing of particular excitement to report in the sense that we were not surprised by a visit from Nelson Mandela or Robert Parker . The visitor numbers appeared to be higher and there was a general buzz around the room as everyone went about their business of sniffing, swirling and spitting. Again the lack of presence from all but actual wine buyers and journos was a disappointment as the mega-tasting is an excellent opportunity for everyone from MW students to waiters and budding sommeliers to have a one-stop shop for SA wine. While the coordination, presentation and winery attendance at the show were impressive, one cannot help but ask if a one-day show would have had the same impact. It is understandable that it is not always convenient to attend on a particular day, but with the exceptional lead times and forward planning you would think that the trade would be able to organise themselves. The problem with giving people too many options is that they tend to exercise them.
From a personal point of view, the event was well worth the time and investment and I feel satisfied that it would be very difficult to replicate the excellent face-time and new business that I achieved as a solo operator. Perhaps the brains-trust that organise the event could think of some way to further differentiate this event. Perhaps an indoor football tournament of SA wine producers and UK wine hacks would have added an element of fun to the sometimes sombre proceedings? But then again, this is a wine trade show in London and an element of formality is to be expected.
While the days have been focused on trade interactions, I have now spent three nights on the trot immersing myself in consumer tastings. In excess of 900 ordinary consumers pitched up for the three events in London and Glasgow and the incredible enthusiasm and support for SA wines warmed the heart of even the most jaded globe-trotting wino.

‘I had no idea that SA wines are so good.’
‘These wines present incredible
value and knock the spots off the French’,
‘South African wines just keep
getting better’

These were some of the typical comments heard over and again at the consumer tastings. So lets analyse, just for a second, the fact that the trade are the ‘gate-keepers’ for South African wine into the UK and there is no surprise that price and potential margin are almost always the primary variables for judging the acceptability of a wine. Given the excitement from the consumers, one could question if the trade has underestimated the enthusiasm of the general wine drinking public for the inherent quality of top South African wines? Is the old ‘value proposition’ positioning of South African wine artificially supported by the embedded historical purchasing habits of the gate-keepers. Are wine buyers taking sufficient initiative in realigning SA quality with appropriate pricing or are they simply perpetuating values that are, perhaps, no longer relevant? Are SA producers aware that South African price/quality ratios are ‘off the charts’ relevant to many of our competitors and that given current Euro exchange rates we have an ability reposition ourselves?
Consumers are generally honest and candid, especially given their power to vote with their wallets. If the consumer enthusiasm encountered over the past week were somehow translated up the value chain to the gate-keepers, it is hard to believe that South African wine is not about to adjust it’s value positioning in the right direction.

South African wine descended on Earls Court yesterday in a well coordinate panzer movement that was designed to strike fear into the heart of the UK wine community. In what amounted to a superb show of force it certainly felt like the SA wine marketing community have come of age. A huge proportion of the top SA brands both large and small turned out to woo and wow the locals in what is strategically an excellent non-conflicted pre-World Cup piece of UK wine calendar real estate. But was there a soccer ball in sight? One cannot help but think that we are procrastinating by not cranking up our media and marketing machine with only months to go before the largest sporting event ever to descend on Africa? It is well known that WOSA has been proactive in designing plans and programs that, I believe, have excellent vision in promoting brand SA, but why was it not unleashed here. Perhaps it will be revealed today as I depart now for the day 2?

OK, so the SA wine industry was in London, but how were my predictions on attendance figures? It is always difficult to gauge attendance at these events and I might be getting in trouble, so I will restrict this opinion to a very narrowly defined one – my own. I was really impressed by the attendance by European and even American interests. I was happy to spend time with my Dutch & Russian agents and enjoyed discussions with colleagues from Finland and Ireland. The New York sommeliers flown to London by WOSA were likes bees around the hive and it would seem took the opportunity to really throw themselves at the opportunity to educate themselves widely, although they lamented that the majority of wines on show were not available in NY – fair enough, it is a UK trade show. There were also some top journos and many of the big supermarket buyers were present, but where were all the restaurant owners, the independent wine shops, the sommeliers and the smaller wine buyers? Did I blink and miss them? After 15 years in the market I know many of the top people and they were, it seems, not there.

The evening was an altogether different affair as SA Wines Online hosted a consumer event that had many of the exhausted SA wino’s running hard with 400 plus consumers scrambling for a taste of some of SA’s top drops. It was a warm and heartening affair with overwhelming enthusiasm coupled with genuine interest that could have lead to excellent sales – an altogether welcome combination. I will be looking to boss-man kevin Gallagher of www.sawinesonline.co.uk to give me some feedback later today, but my gut feeling is that it was huge success. Well done to all.

Follow me on Twitter www.twitter.com/mikeratcliffe

Day 2: London calling - Mike Tweets & Blogs from the UK

The buzz is building in Blighty as we inch closer to the Day 1 of the mega-tasting. London’s streets are riddled with South African’s armed to the teeth with wine – and with every intention to use it. Informal chats with some of the top UK journo’s shows that a strong media presence will be felt tomorrow and so far the top buyers from Waitrose, Sainsbury;s, Tesco’s, Morrisons, Wine Direct and the Wine Society will be descending on Earls Court to hob-nob with the who’s-who of the SA winemaking firmament. Will any of the South African journalists be present to record this auspicious moment of unity for the loyal South African public?

This year WOSA is bringing a couple of new angles to the event. About a dozen top New York sommeliers are being flown from the USA to attend the mega-tasting which is an incredibly efficient and intelligent use of WOSA and winery resources, effectively killing two birds with one stone. I will be dining with the sommeliers this evening and will be sure to blog about this tomorrow to hear their impressions. This global WOSA strategy is a good omen demonstrating the WOSA board’s commitment to a new USA wine strategy which is going to culminate in another mega-tasting of sorts in New York City on May 11^th 2010. More USA buzz is going to be evident on Tuesday the 17^th of November when the WOSA USA workshop kicks off in Stellenbosch. But I digress…

The idea that a mega-tasting hosted in London should be a purely UK-centric affair is getting old. London is the cross-roads of the wine world and WOSA’s decision to use it as an American and European platform is excellent. The effort to travel to the event from Europe is minimal and I understand that this year the event has been extensively marketed by the European offices. The proof is in the pudding, but ultimately an event of this nature is a the next best alternative to the ‘Cape Wine’ events that have been so successful in the past, but actually at a much smaller cost.

So what defines success? This is an open-ended question and one that would have a hundred reasonable answers. In my observations in many London off-con outlets, I have too–often bumped into brands that I have never (or seldom) heard of. There are too many brands that are once-off brands or buyers own brands (BOB’s) that have got no particularly identifiable source or origin. Too often these are ‘buy-one-get-one-free’ brands (BOGOF’s). These are characterless wines bearing the ‘Made in SA’ moniker, but seemingly devoid of any of the unique South African ‘Brand-DNA’. So what would define success for the mega-tasting? A successful SA category in the UK would see fewer BOB’s, fewer BOGOF’s, a lot less CRAP and much more inherent South African-ness in our brands. Success would see a tighter marketing message and a more clearly defined point of differentiation about what exactly South African-ness is. It is my hope that the unified marketing message being promoted by WOSA as the ‘BRAND DNA’ of the Wines of South Africa will be adopted and embraced.

Now, I am off (in 5 minutes) to dinner with the USA sommeliers – more from the tasting tomorrow.

 

 

Follow Mike Ratcliffe on Twitter www.twitter.com/mikeratcliffe or on FACEBOOK

The bi-annual Swallow-like migration of South Africa’s wine making and wine marketing elite to London started this weekend with flocks descending on Cape Town International for the trip to the ‘other’ London Wine Show – the WOSA ‘Mega-tasting’. The biggest showing of our collective wine muscle outside of the Cape Wine show starts flexing at Earls Court on Tuesday and one can be sure that the UK media and wine trade will again be as supportive in their attendance as ever.

South Africa’s generic wine marketing function has always been under the spotlight and over the years has been a punching bag for winemakers struggling with excessive inventories, but lately there is a growing body of evidence that WOSA has come of age. Recently Su Birch and her exceptionally able and experienced band of ‘merry men’ (and merry women) presented the marketing strategy for the year ahead including a document on the ‘Brand DNA’ of the Wines of South Africa. Now, there is no secret that I am generally predisposed to marketing orientated discussion and have, over the years accumulated an ability to assess this type of communication, but it would be an understatement if I said that I was impressed by the WOSA presentation. In fact I can take it one step further to say that the WOSA Brand DNA presentation for South African wine is one the slickest strategies that I have ever seen and is an asset that we as an industry need to embrace and celebrate. To put it simply, there is no generic wine marketing competitor that could boast anything like what we have and that is a pretty cool thing. Have you read it? Is this news to you? Well, please go onto the WOSA website and download it or call the offices and ask them to send you one of the very tastefully designed brochures that spell out the vision – and then make sure that you and your winery start implementing.

So, here I am sitting in a Kensington wine bar wondering why I am paying £7.75 for a glass of very cheap red Burgundy and pondering the relevance of this whole circus known affectionately as the UK wine market. It was Oscar Wilde that said that ‘The man who can dominate a London dinner-table can dominate the world.” Any seasoned wine marketing campaigner will tell you that London (or now apparently Hong Kong) is the centre of the wine world. On every corner there is a wine bar or wine shop plying it’s trade to a public that have come to acknowledge wine as a necessary staple as ubiquitous as a loaf of bread. If consumer acceptance is the bedrock of wine marketing nirvana, then London is where it is at and where competition is more aggressive than anywhere on the planet. For this reason I have been dispatched by the ‘powers that be’ at wine.co.za to scout for stories and anecdotes that exemplify our South African efforts and which I will be reporting on over the course of the next week – that is the full extent of my mandate.

Stay tuned – I have no idea where this is going.

Follow me on Twitter www.twitter.com/mikeratcliffe or on FACEBOOK