Differentiating the Premium #Wine Category

(Ongoing series of posts regarding Walla Walla AVA wine tour)

Unfortunately, I hurt my knee on this trip and had to visit the local walk-in clinic today, but it turned into an interesting experience. The attending doctor was a big wine enthusiast and he said something that resonated for me, “a winery can’t just say it is an ultra-premium winery, they have to earn it!” Can a winery just raise its price and call their wine ‘ultra-premium”? Is it possible to get away with this as a marketing strategy?

My wife and I visited Va Piano Vineyards today, a next door neighbor to Pepper Bridge Winery (a well-known ultra-premium cab producer). First we were presented with two single vineyard estate Cab Sauv’s (Va Piano & Octave Estate Vineyards) that were only available through their wine club – establishing a $60-$70 price point. These were $40-$50 in real value (IMO), in comparison with other growing regions. They were reasonably well-made wines, but a touch watery, had limited mouth-feel and a weak finish. So, here I am thinking, if you can establish that higher price point to begin your reserve wine offering, when you pour the really good stuff at the end, it will invite an unfair comparison… Guess what? The last wine (De Bruhl Vineyard Cab) was a beautiful wine and the retail price was $95/btl! Unfortunately, I can buy a similar beautiful Cab in Napa for $75/btl. As a counterpoint, we drove down the street to Sleight of Hand Cellars and they were selling Bordeaux Blends WITH a nice classic structure for $40-50/btl. Definitely more rustic than the Va Piano, but complete, balanced wines. A different style, but well made also and close enough in quality to make you sit back and wonder…

So, what is going on here? Just because a wine is more expensive, is it better quality? Not even close! The concept at work here is not as simple as poor value… it is “buyer beware” thinking. Instead of comparing the less expensive Va Piano cab to their more expensive, an educated consumer should be comparing wines to other producers in the same price category. I came to Walla Walla AVA looking to understand the region and part of that process has to be an evaluation of how the “value” compares with other wine producing areas.

I am torn on this topic. I can see both sides of this argument and I realize I am being a little unfair appearing to make an evaluation based on tasting at two wineries, but the issue is much more broadly relevant and does deserve more discussion. Smart marketing (pricing strategy) exhibits a savvy that I can appreciate in business, but as a consumer… it makes me slightly distrustful of the producer. Let’s say, I am interested enough in these wines to take advantage of their limited availability now. That question of realistic value will always be running through my head, when evaluating my next purchase from this producer… Not the kind of relationship I would want with a preferred winery.

As a consumer, how do YOU establish the price points you are willing to pay for various styles of wine? Without an experienced palate, this question is difficult to answer and the reason so-called “ultra-premium” wineries can develop traction with the buyer through perceived exclusivity. For a formally trained Sommelier, the answer is easier and I have introduced most of these criteria in my last post, but here it is again, and more…

• Balance, balance, balance! Did I say balance? (enough emphasis?)
• Structure… (sparing the emphasis 🙂 ): Acidity, Tannins, Texture (mouth-feel), Phenolic Development and a long Finish
• Complexity: Layered flavors – separation between the Attack, Mid-Palate and Finish. Intriguing flavors – for example, minerality, herbal (i.e. mint), or floral notes. Quality of Tannins – fine, coarse, etc.
• For individual buyers, value can even represent something as simple you prefer cinnamon, floral violet, or vanilla flavors and you are willing to pay a premium for your preference…

I had several comments relating to this topic in response to my last post and all emphasized the idea that expensive wines ($40/btl and above) had do be properly balanced and structured. What makes a wine worth more to you?