(Fake) Lafite in China

I wanted to write about this a little while ago when we did the Rothschild case, and am finally getting around to it - I'm going to talk a bit about fake French wines in China.

Most notable, of course, is the Lafite wine. To put its popularity in perspective, the Chinese name for the legendary first growth –拉菲 – generates about 40,000 – 50,000 searches a day on China’s biggest search engine, Baidu.com. Interestingly in China, the name Lafite (拉菲) is not only used to describe the first growth grand vin, it’s also associated with other lesser brands under the (DBR) name. including the much cheaper Légende and Saga. But nonetheless, Lafite, has grown to be one of the most well known - and most often faked - wines in China.

Here are some of the top fake and misrepresented Lafite brands seen in China to give a sense of the counterfeit landscape.

1.

 

This wine called "Lafite Family" is marketed by a Shenzhen company in the south of China called Jinhongde Trade Co Ltd. DBR  took the Chinese company to court in 2011 for using the trademark “Lafite” and the five arrow symbol to confuse consumers and engage in unfair competition, 

The Changsha Intermediate Court ruled in favor of the first growth and awarded US$43, 621) in compensation as the first growth successfully argued that it has already registered its English name’s trademark in 1996 and its five arrow symbol in 2001.

2. 

Instead of using ‘Lafite’, this Lafite look-alike played on the Chinese transliteration of the first growth’s name and used the Chinese pinyin (phonetic symbols) for Lafite – "Lafei". Additionally, it’s worth noting that Lafite is still locked in a legal battle over the use of its Chinese name -拉菲 – with a Nanjing company. The French winery only applied for its Chinese name’s trademark in 2006, a year later than the Nanjing company who had already applied for the name’s trademark. The Chinese company was successfully granted the Chinese trademark in 2007 but Lafite later brought the case to China’s Trademark Review and Adjudication Board (TRAB), which ruled against the Chinese company in 2013.

3.

“Lafei Empire” is another example of wordplay on Lafite’s transliterated Chinese name in pinyin. Although bearing the familiar five arrow symbol on the capsule as well, the wine has no relations with the the actual Lafite.

These are just a few variations of the plethora of counterfeit brands in China. Even as someone with basic understanding of the authentic brand and French language in general, I still find it difficult sometimes to distinguish bona fide Lafite wine from knock-offs. Authenticity is one of the most important things about wine, and until that's well protected in China, it'll be hard for the sale of imported wine to truly take off

References

1. https://www.thedrinksbusiness.com/2017/02/top-fake-lafite-brands-found-in-china

After the Revolutionary War, the Whiskey Rebellion

Recent discussion on legislation, taxes, whiskey, madeira and the War of Independence made me reflect on the important influence alcohol and taxes have had on American history. Few may be aware that shortly after independence, the sovereignty of the Constitution was challenged in what was later known as the Whiskey Rebellion (1791 – 1794).

Whiskey production in the American Colonies began with the arrival of Scottish and Irish immigrants in the 1700s. Apart from commercial distilleries, farmers would distill their surplus grains into whiskey. By the 18^th century, whiskey was the most popular distilled beverage in the United States. After defeating the British, the newly formed federal government had to pay off a huge war debt. To help do so, then Treasury Secretary Alexander Hamilton proposed and Congress imposed the 1791 “whiskey tax”, the first tax on a domestic product.

Farmers, particularly in western Pennsylvania and Virginia, responded in uproar. Protesters believed they were fighting for the principles of the American Revolution, especially against taxation without local representation. Looking beyond principles, frontier farmers rejected the tax because it was only payable in cash, something rare on the western frontier. They also faced great challenges transporting their produce over mountains to markets in the east. This drove them to distill most of the grain they grew as it was easier to transport spirits rather than the grain itself. Supporters of the tax argued that it was the legal expression of federal Congressional powers.

Over the next few years, federal tax collectors were met with violence and intimidation throughout the western frontier. Things climaxed in 1794 when about 500 armed men attacked and razed the fortified home of a tax inspector. When his attempts to negotiate with the rebels was rebuffed, then President George Washington led a 13,000-strong army of militiamen into the Pennsylvanian countryside to suppress the insurgency. The rebels melted away before the army arrived and there was no confrontation. About 20 were arrested for their participation in the rebellion, but all were later either acquitted or pardoned. 

Washington’s suppression of the Whiskey Rebellion met with widespread approval. The new national government had shown willingness and ability to defend the Constitution by suppressing violent resistance to its laws. However, the whiskey tax remained difficult to collect and was repealed by the Jefferson administration in the early 1800s.

So when you drink your next shot of whiskey, know that you are drinking a piece of American history. I am sure there’s a marketing opportunity somewhere in combination with madeira.

Wines of Bosnia & Herzegovina

I sadly had to miss last week's class on whiskey, but on the bright side I got to taste some wonderful wine in Sarajevo. Bosnia and Herzegovina have two predominant varietals: Blatina and Žilavka. Blatina is a red grape, and interestingly is a "functional female flower," meaning that in order to pollinate it must be planted along with other varietals such as Merlot. Žilavka is a white grape planted throughout former Yugoslavia.

So where did I taste the wine? I went to a great restaurant on the hill overlooking Sarajevo called Restaurant Kibe, which had a decently sized wine list of domestic wines. However, when I sat down at the table, I realized that I knew nothing about Bosnian wine. Thankfully, the restaurant had Wifi, and some quick googling turned up the fact that an importer I'm familiar with - Blue Danube -  actually works with one Bosnian producer, Brkić, which thankfully was on the list. This made me wonder why more importers don't cultivate a consumer-facing brand as curators of top foreign producers, particularly since we've seen that importers can ship direct to consumer in the US. Anyways, I ordered the Brkić Plava Grada (a Blatina) and the waiter seemed pleased with the choice of wine, which I thought it was pretty tasty if a little on the sweet side for my preference. That's about the extent of my tasting notes, but it really was good!

Bonus photo of a bunch of wine sitting in a room in Tito's (former ruler of Yugoslavia) multi-billion dollar secret underground bunker:

Music & Wine: Hitting All the Notes

An additional component of Drink Your Feelings' marketing strategy that I was unable to mention during yesterday's presentation (but absolutely love!) is enhancing customer experience and engagement through music. Last week, during a tasting at a local winery, a friend and I started comparing the wines to different bands, and then more broadly to different styles of music. Upon returning home, I did some research and found we weren't the only ones thinking about this connection. 

In 2015, Wine Enthusiast released a pairings list matching varietals to what they felt were complementary styles of music:

A growing body of scientific evidence is demonstrating that music and wine are closely linked, and that each can enhance the experience of the other. WineSmith winemaker Clark Smith explains: 

"Anybody can tell happy music from sad from angry from romantic from lustful. Wines are the same. Cabernets are angry, Pinots romantic, Rieslings cheerful.... Pay particular attention to astringency: the smoothness or harshness a wine displays when tasted in a specific musical environment. You don't need more than a few seconds to sense the effect... The trials we've been doing demonstrate the synergistic effects quite clearly and at this point pretty universally for thousands of people." 

He connected this to music through the experiment outlined below:

(1) Set up a flight of whites...

(2) Have your tasters record their impressions on the wines' characteristics (fruitiness, buttery, oaky, smoothness); then have everyone vote on a favorite.

(3) Now, turn on "California Girls" by the Beach Boys. Smith's research shows that now your tasters will love the Glen Ellen and find everything else "pretty disgusting." Everyone votes again.

(4) Now, turn on Ella Fitzgerald's "St. Louis Blues". He has found that will cause the Glen Ellen to taste harsh, and all will prefer the Rombauer's butter and balance. Everyone votes again.

(5) From here, play 15 second clips of the two pieces over and over until tasters are convinced of the effects.

The experiment can also be replicated with reds. His recommendations for a tasting experiment include pairing "romantic music" like Mozart's "Eine Kleine Nacht Musik" with a burgundy from the Côtes de Nuits or Strauss with a California pinot... and then comparing the experience to pairing a Cabernet Sauvignon with "dark, angry music" like "People Are Strange" by The Doors or "Here's To The Meantime" by Grace & The Nocturnals.

As part of DYF's marketing strategy to build a strong, authentic presence across as many interests and platforms as possible, DYF would partner with Spotify - and work with both winemakers and artists  - to curate varietal-specific playlists according to the recommendations and findings above.

Have a surplus of riesling you're trying to push? The connection between music and wine could also be leveraged in tasting rooms and even bars to prime specific sales. A 1999 study published in the Journal of Applied Psychology analyzed 82 wine buyers in a suburban English supermarket and found that when shoppers heard French music in the store, French wine outsold German wine by a ratio of five to one. Likewise, when German music was playing, German wines sold well. This study was further validated inbyone of my old New York hangouts, City Winery; their GM has tracked wine sales against musical performers and found that when young singer-songwriters perform at the restaurant/bar, New World wines from California and Oregon sell more. Heavier bass lines result in increased sales of Syrah and California Cabs, and "higher tones" inspire demand for white wines.

For industry giants like Gallo looking for new ways to reach and engage Millenials, music could be an unexpected and unique way to access young hearts and minds. Consider, for example, the festival space. Why not offer a menu that changes with the lineup? Or a tasting named after various bands or songs? Or different varietals near different tents? Last year at Coachella, I waited in line for a tiny glass of $12 rose. The audience is captive, the beverage options and limited, and, of course, the music is right... 

Door Dash + BevMo

I got an email from Door Dash last week announcing that they will now deliver from BevMo for $3.99. For right now, it looks like this offering is limited to Los Angeles and the Bay Area. We mentioned in class the other day that UPS is looking to get into the hyperlocal, deliver within the hour game; but, I wonder if Door Dash or Postmates are better positioned to serve this market. If Door Dash is partnering with BevMo, there should be nothing stopping it from partnering with third party marketing firms and delivering wine from local warehouses.

In any case, check out the details below!

Feeling thirsty? You can now order BevMo! through DoorDash. Get discounted delivery fees of just $3.99 on all orders. Order Up!

*PROMOTIONAL DETAILS: Offer available for limited time only. Reduced delivery on orders from BevMo! No code need

Mainstreaming sake

For the sake group, I wanted to ask: why did you choose to sell through Japanese restaurants? Of course I realize it is a Japanese beverage, but I argue that there is potential for it to be sold in all manner of restaurants. Hiromi Kiyama, the wine and sake sommelier at Michelin-starred 15 East and Tocqueville in New York agrees. She serves sake alongside the French menu at Tocqueville (as well as 15 East, but this is a Japanese restaurant so less relevant to my point).

Continuing to serve sake in Japanese restaurants limits any sake-related business in an obvious way. Why not create a new image for it? It's drinkable to the point that it not only pairs well with the classic light fare typically offered alongside white wines, but can also be served with heavier foods like pizza (Kiyama's recommendation - I have yet to try this).

Sake is a beautiful product with a great story. I would love to see more people appreciate it. Especially when I consider how sake consumption in Japan has decreased and small, traditional breweries have been declining in numbers since the 1970s. It would be incredible to see a company revitalize the sake industry by successfully placing traditionally-made sake in the mainstream.

Maybe the next time I go for pizza, I'll bring a bottle of sake to enjoy it with...