CellarTracker Main Site
Register for Forum | Login | My Profile | Member List | Search

Oregon wine in the market - what's next?

 
View related threads: (in this forum | in all forums)

Logged in as: Guest
Users viewing this topic: none
  Printable Version
All Forums >> [Cellar Talk] >> General Discussion >> Oregon wine in the market - what's next? Page: [1]
Login
Message << Older Topic   Newer Topic >>
Oregon wine in the market - what's next? - 10/12/2008 2:35:54 PM   
esb

 

Posts: 125
Joined: 1/17/2008
From: Bend, Oregon
Status: offline
A good article by Bill Hatcher, A to Z and ex DDO. One thing is for sure, with a few exceptions ('[94 vintage and Sideways), supply has always exceeded demand.

http://www.oregonwinepress.com/index.php?pr=1008_19_Guest
Post #: 1
RE: Oregon wine in the market - what's next? - 10/13/2008 6:36:51 AM   
JohnNezlek

 

Posts: 218
Joined: 12/14/2006
From: Gloucester, Virginia
Status: online
Has/does anyone consider the possibility that the wines are too expensive for what you get? I find Oregon Pinots to be a bit pricey. Are the costs of production that high? I should also add that I do not have that much experience drinking them -- see first point.

John


_____________________________

Too many wines, too little time.

(in reply to esb)
Post #: 2
RE: Oregon wine in the market - what's next? - 10/13/2008 4:17:15 PM   
dbp

 

Posts: 9
Joined: 1/17/2008
Status: offline
Definitely an interesting read; thanks for the link. I almost entirely agree with the article. I'm from Portland, and have probably tried over 100 Oregon Pinot Noirs in the last year, going out tasting a few times a month, on average. I love Pinot Noir... and I love Oregon Pinot Noir, when done well. But to JohnNezlek's question, I absolutely agree that most Oregon Pinot Noirs are way over priced for the quality... however, I guess the same can be said about most wines in the world. But when I can get 2005 Premier Cru Burgundies scoring above 90 points by reputable press for around $35, you need to be doing damn well in Oregon to earn my dollars for Pinot Noir, and I'm a local! I probably do buy more Oregon Pinot at a given price point than I should, due to the enjoyment I get going out tasting, and I like bringing those memories home with me. But yeah, most of the higher end wineries start their pricing structure around $40, and their single vineyard and special bottlings are generally $60-80. While I don't do formal notes when I go out tasting, most of those expensive bottles score in my mind space around 90 points. There's no way that's worth $80.

I think the pricing structure is set by a few of the 50 top wineries the article was mentioning. Certainly many of these top producers DO sell out of their wine. I visited four producers yesterday that have sold out in the last 4 vintages and have no excess stock even for themselves. Some of these wines are great... and since they ARE selling out, they can get away with charging those prices. Perhaps to try and legitimize themselves, the smaller producers are releasing their wines at these prices from the get go. Sometimes this works, but usually not. I was just at Ayoub yesterday, talking to Mo Ayoub. When he hit the scene with his 2004 Pinot Noir, nobody was giving him the time of day. "Who is this guy from Oregon asking $42 for a bottle of wine?" The same guy that said that wound up calling him back a few days later after he tasted the bottle Mo left for him and declared it the Romani Conti of Oregon and bought several cases for his store (that same wine has an average cellartracker score of 94.5). So... sometimes the pricing works, but obviously the vast majority of the wines out there are not up to snuff, and as a result there is this huge wine glut and there is a great perception of over-priced wines (and rightfully so). I'm thinking if we just produced less wine (by further reducing yields) we would not only get rid of this wine glut, but also produce a better product. The argument that these small wineries can't afford to do that is BS, because it costs them MORE to buy the bottles and bottle hundreds of cases only to have them sit in their storage facility..

I totally agree that perhaps the biggest thing that needs to happen is improved marketing. That's very often what sells things, after all... Silver Oak still sells like crazy at stupid prices, right? And that stuff sucks in recent vintages! It's all about marketing and brand image. However, one thing I do disagree about is that all the new AVA's just confuse people. So there's a few extra words on the bottles... big deal. Most people ignore the AVA's anyway. I don't think it necessarily IMPROVES matters, but it doesn't make it worse... you want confusing, look at Burgundy. Sure, they're established, etc. but it took me much longer to wrap my head around that stuff.

Anyway... I kind of babbled. But I liked the article. :-)

David

(in reply to esb)
Post #: 3
RE: Oregon wine in the market - what's next? - 10/13/2008 5:20:22 PM   
duck833

 

Posts: 65
Joined: 5/13/2008
From: Eugene, Oregon
Status: offline
Lots of juice in Oregon but it appears that folks are still buying it up.  Huge amounts of acreage still going in though.  At some point basic economics of supply and demand will take over.  Unless Oregon can market all this juice then the prices will come down.

2006 was a wonderful year for me.  The PN drinks very well.   The 2007 year however is another story.  The bulk producers that buy grapes from everywhere will not have the same quality in 2007 that they did in 2006. The 2007 year will be great for the experienced winemakers that could deal with the rain and wet conditions.  One particular under $20 PN that had great success in 2006 is undrinkable to me in the 2007 vintage.  Be sure to taste before you back up the truck.

_____________________________

Go Ducks!!!

(in reply to dbp)
Post #: 4
RE: Oregon wine in the market - what's next? - 10/13/2008 6:02:42 PM   
JohnNezlek

 

Posts: 218
Joined: 12/14/2006
From: Gloucester, Virginia
Status: online
David,

I agree that marketing is important, but (however naive it might be) at some point the quality of the wine is what matters. Like you (from reading between the lines), I am amazed at the prices some of the California wines command. I guess it's worth it if you are concerned about the label as much or more than the wine itself. Regardless, at some point, enough people will say enough. I am always happy to see someone pay 500+ for a wine made by someone referred to by a first name who used to work at some place more famous. I am happy because it's nice to know that someone has enough money to piss away. For me, I will tend to stick by France (Bordeaux in particular). Although there is a lot of hype there, the norms are vey different. Lees hype and excitement -- more drinking for drinking's sake. I guess I am just old fashioned. Noting all this, I look forward to reading your TNs. Please offer them. No one may live or die by them, but they are very welcome -- at least to me.

Cheers,

John

PS I don't buy that much Burgundy for the very reasons you describe -- too many little parcels here and there. Can't keep track of all the brothers and cousins. Maybe some day.


_____________________________

Too many wines, too little time.

(in reply to duck833)
Post #: 5
RE: Oregon wine in the market - what's next? - 10/13/2008 7:02:36 PM   
khmark7

 

Posts: 65
Joined: 7/6/2008
From: Illinois
Status: offline
Nice article, but I do think that Oregon is on the map concerning those people who are willing to spend $20 or more for a bottle of pinot.  You rarely find Oregon pinot for less and hence they are not reaching a good portion of the market.  Also, given that most producers are somewhat small it's hard to have national distribution when your only making 1000 cases.  I buy almost 90% of my Oregon wines through mailing lists so perhaps the internet is a place where wineries can direct marketing.....or help strike down unfair shipping laws in other states.  Just a thought....

(in reply to JohnNezlek)
Post #: 6
RE: Oregon wine in the market - what's next? - 10/14/2008 10:03:06 AM   
esb

 

Posts: 125
Joined: 1/17/2008
From: Bend, Oregon
Status: offline
I think initially the industry was driven by visionary, hard working individuals who focused on production first and marketing second. They had to do it that way since it took years to get the first bottle off the line. That attitude may still prevail. I don’t know.

As indicated, price does keep informed people from trying the wines. And, I agree, in some cases the affordable, lower tier wines disappoint, scaring potential customers away. But, also, for the diligent, many solid price/quality wines exist, but it’s work to find the gems.

The Willamette Valley isn’t easy to understand. The hills twist and turn, rise and fall w/the soil constantly changing making the new AVAs, . . . I don’t know - irrelevant. Look at the geography; it’s not Burgundy. Regarding AVAs, I think it’s important for the wines within each AVA to have a certain sameness, or the designations hurt more than they help. Or in other words, the wines unique consistency should determine the need for an AVA or it’s all marketing b.s. and the consumer knows it.

I generally like the Hatcher article, but i have been reading similar sentiment from winegrowers for decades. How are we going to deal with the explosive growth? From past experience I’m inclined to think it will work out. The market will expand and/or, as indicated by many, price will take care of any supply/demand imbalance. Of course there will be some growing pains along the way. Hatcher’s cry out for a unified marketing effort seems like a reasonable, proactive opinion. However, reading between the lines, I get the impression that agreeing on a marketing path has been difficult (herding cats). But doesn’t Oregon, the State, its people, already have a reputation - which translates to the wines as well?

For several years, quite a while ago, Erath sold more PN in the United States than any other producer. Amazing . . not sure what it means.

(in reply to khmark7)
Post #: 7
RE: Oregon wine in the market - what's next? - 10/15/2008 1:25:40 AM   
pjaines

 

Posts: 922
Joined: 5/26/2008
From: London
Status: online
Interestingly enought Oregon Pinot Noir does have a very good reputation in the UK - although as ever with wines from the US, you just can't get hold of the stuff.

If the producers are saying they are sitting on 36 months of stock then I would start thinking about exporting.  They may be good wine makers but it sounds like they must be pretty dumb business men.

< Message edited by pjaines -- 10/15/2008 1:26:36 AM >


_____________________________

-- Paul

(in reply to esb)
Post #: 8
Page:   [1]
All Forums >> [Cellar Talk] >> General Discussion >> Oregon wine in the market - what's next? Page: [1]
Jump to:





New Messages No New Messages
Hot Topic w/ New Messages Hot Topic w/o New Messages
Locked w/ New Messages Locked w/o New Messages
 Post New Thread
 Reply to Message
 Post New Poll
 Submit Vote
 Delete My Own Post
 Delete My Own Thread
 Rate Posts




Forum Software © ASPPlayground.NET Advanced Edition 2.4.5 ANSI

0.219