Reformation Isn't Always a Good Thing Part I of II
Written By: Kasey Carpenter on Tuesday, January 8, 2008
European wine makers are facing an uphill battle against economic difficulties. Is reformation the answer?
AP ran a story that I picked up via the New Zealand Herald entitled: " EU reforms crisis-ridden wine industry."
Innocent enough, right? We all recognize there is a problem in the European wine scene, and it isn't all to be laid at the feet of a
strong Euro.
The article goes on to discuss how the EU plans to help the failing system:
"Changes include tearing up vast swathes of vineyards, getting rid of overly intricate labeling, and aggressively reaching out to international consumers instead of relying on age-old reputations."
Before we proceed, I'd ask you to go back a few months and read my article "The Pox on International Style."
In that article I called down evil on those who abandon the nuances of their already unique and viable vineyards for a quick buck, or worse, quick points.
But what's scary about this is that it isn't being driven by the press so much, or the reviewers, but is being backed by the governments by way of an economic bailout; you make crummy wine, we'll give you money. While yes, in the grand scheme of things all of this is as a result of consumers going for lesser priced, fruit forward, paint-by-numbers labels, the issue can be approached two ways:
Either up your quality AND educate your consumer to embrace your arcane yet productive practices, OR throw out the baby with the bathwater, getting rid of AOC laws and labeling so everything is as easy to read as a bottle of grocery store Shiraz, which will engender perhaps a newer, younger, more carefree crowd, but will alienate if not eliminate your older, established buyers who have been financial fans all those years.
Hmm, quite a pickle. Reformation, while generally under the guise and intention of upward progress, has its downsides (the Dark Ages anyone? Will Martin Luther please pick up the red courtesy phone…) and this impending, if not already, embraced plan of reformation has some serious ones.
I cannot recall a time when dumbing your product down to the least common denominator resulted in a better product. Last time I checked, when you guarded your heritage yet explored new technologies, reacted to shifts in the market where price and value are concerned yet still held your identity, those things tended to add value to a product versus homogenize the whole market.
If everyone made grocery store Shiraz because it was the most popular wine period, would that mean that all those wineries were winners? Does that also mean that because it is the most popular wine, that all wines made in that style and pricepoint meet the wine buying needs of the majority? If 60% of the wine buying public loves grocery store Shiraz, then doesn't it stand to reason that someone will eventually wise up and exploit the 40% who are left in the lurch?
And does the EU really think that EVERYONE else is adopting this policy with success? Have they not learned from Australia?

Wine is not just about drinking pleasure-it's also about collecting the right bottles, hedging your bets against the swings of the wine market, and possibly even turning a nice little profit on the bottles of wine that have been resting all these years in your cellar. But how are you supposed to know what to buy, what to sell, and how much is too much to pay for a wine? Texas-based wine-investing expert Kasey Carpenter has all the answers. And some of them may surprise you!
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