Sinking Ships in NY Seas
I had an impromptu chat with one of the owners of a prominent Manhattan retailer yesterday and we were discussing the future of wine, specifically in upper Manhattan. I’ll leave the theories out of this post, but overall the consensus was that the NY State wine industry is probably about to go through a big overhaul if it is going to stay the top player in the world for fine wines. Perhaps the biggest reason is that in order to stay profitable distributors are causing the wines in NY State to be more expensive then other states. Now savvy consumers are seeing major and highly desirable Domestic and European houses at smaller, lesser known retailers in states like CT, NH, MA, IL, and FL. The distributors in these states don’t need need to pay the high costs of the empire state and therefore are able to post prices 10, 20, sometimes even 30(!) percent lower then states like NY and California. Ironically, the two biggest and most powerful markets – San Fran and NY – who’ve actively discovered and created new brands over the past 60+ years for the American market are starting to get gutted (and this isn’t just happening in the wine world – spirits and beers aren’t impervious to the trend). Other states have seemingly watched and waited while NY and San Fran have paved the way with wine trials and errors and are making their strategic moves with the very same portfolio NY and San Fran
have been vigorously shaping and reshaping for years. Online prices that are 30% higher (even a mere 5%) will lead savvy shoppers elsewhere. Even if it means breaking loyalty bonds they’ve created with their trusted stores.
How will the NY market overcome this? Well, I have several ideas but I told you I’d keep theories out of this post. Would love to hear what you think!
We also got on the topic of Diageo (a global brand collection leader – portfolio includes giants like Johnnie Walker, Buchanan’s, Ciroc, Smirnoff, Guiness… etc) and it’s loyalty to Empire Merchants in the NY market. Oddly enough, Diageo teams with Southern in every other market besides NY. To reduce any nail biting, Diageo just signed another five year contract with Empire, but if they ever started to think it’d be more profitable to jump to the bigger NY ship, it would be devastating to the second most powerful ship in the sea. It’d be the equivalent of transforming a aircraft carrier to a tug boat. The question is – should this change occur? The powerhouse wine markets do need to change. There are just too many fish in the sea right now with WAY too much bait being thrown in. Serious failures are likely going to and, quite honestly, need to occur within 2-3 years with the lazy and/
or foresight-lacking companies that don’t make the right moves to grow smart, fast and efficiently. Many more partnerships/acquisitions like that of the vineyard brand/winebow/martin scott/tempranillo merge and product swaps are going to happen and should happen while they sort this out. As regulations get tighter and competition gets tougher it’ll be very interesting to see which companies have the internal force and structure to not just stay profitable, but stay afloat.
And just so you weren’t thinking I didn’t have terroir on my mind (ahem.. I always do!), I tasted a killer Champagne over the weekend at Mohonk Mountain House. Talk about a place that knows a thing or two about utilizing the land (the pics online look incredible but still don’t do it justice)! What an amazing weekend escape destination. My wife and I sat down to celebrate transitions in our lives and we popped a 2012 bottling of J.M. Seleque’s “Tradition” Brut that I brought along. Fresh, lively, slightly buttery with a honeyed citrus and pear focus, floral notes and light-med yeasty finish. It’s a bit young now, but once it opened up (60-90 minutes) it was hitting it’s stride just fine. I think a clever colleague of mine and fellow taster, Josh Raynolds, summed it up nicely on Vinous,
“Light yellow-gold. Vibrant, mineral-laced lemon and pear scents are complemented by notes of anise, chalky minerals and buttered toast. Juicy citrus and orchard fruit flavors flesh out in the mid-palate, picking up a hint of honeysuckle. Finishes focused, stony and long. This bottling is made from the estate’s youngest vines, which are reportedly around 35 years old now.”
And gave it 91 points to boot.
I feel I have to give an honorable mention to a gorgeous Rioja that costs next to nothing. Tobelos nearly blew us over last week while we were tasting with a small importer, Spanish Acquisition, led by Tempranillo Inc alums (one a former partner, Juan Paredes). The Tobelos is well-crafted, varietally/regionally correct and over delivers in a big, big way!
I was sitting in 


I like food and wine. But not like other people would say so… For me, it’s a bit of an obsession. In fact, I could go a step further – I love food, wine, language, arts and culture especially when they’ve come from a single origin. Whatever the taste, I want to know how it was made, what it felt like, who is awake talking about it now in the land it is from and whether or not I should know anything more. That is why I started this site. To unleash the incredible amount of info that is spat at me 24/7 onto you. All three of you.