Below are some examples that will help you nod knowingly the next time you're browsing through Safeway. It's fun to watch the brands copy each other shamelessly (e.g., Constellation's Ravage going after Gallo's Carnivor), and to see how hard to avoid self-cannibalization in such unwieldy portfolios. (It gets even weirder in other alcohol categories - how Beam Suntory manages to juggle both Old Grand-Dad Kentucky Straight Bourbon Whiskey and Old Crow Kentucky Straight Bourbon Whiskey I'll never know.)
Constellation Brands owns:
Robert Mondavi
Clos Du Bois
Mark West
The Prisoner
Meiomi
Black Box
Toasted Head
Rex Goliath
Gallo owns:
Barefoot
Apothic
Andre
Dark Horse
Carnivor
Alamos
Mirrasou
The Wine Group owns:
Cupcake
Chloe
Benziger
You get the idea. So next time you're reading those entertainingly florid descriptions on a wine label, just remember you can't spell "authentic and homegrown" without M&A.
Randy, when I see you post, I feel compelled to read it... thanks for your latest!
ReplyDeleteI was intrigued to find a favorite of mine (The Prisoner) in the same portfolio as Black Box. Although methinks Constellation is going for market segmentation here and would be happy to have me in The Prisoner target audience, just seeing the portfolio listed out like this got me thinking. Should I be reconsidering some of my purchasing habits from a purely economical perspective given that I now (just instinctual) feel like The Prisoner is now somehow less appealing to me than it was when I first discovered it a few years ago [the acquisition was only in the past year: See http://www.winespectator.com/webfeature/show/id/52992]?
If I like the taste, does it matter if it is still owned by original founder Dave Phinney (2000), or Huneeus Vintners (2010) or Constellation (2016). What about the fact that the winemaker has changed from Phinney to Jen Beloz (2011) and now "her team will consult on the winemaking, but the company will move production to Napa's Franciscan Estate Winery." So a wine I enjoy immensely has changed hands from an ownership, vitner and geographic perspective. But, could I tell and do I care?
Well, probably not. What matters more to me is if I like it -- on a nice date night with my wife I will seldom think of such disparages to "authenticity." But, one final consideration, is that I may now consider anew my choice of wine from an economic perspective. If I'm buying The Prisoner in a restaurant my price tag could be 3x as expensive as a Black Box of red wine to be enjoyed with friends in the park near our home. To drink the price equivalent of The Prisoner, we essentially host interested members of this G356 class with Black Box on the menu instead (3 boxes x 4 750 ml bottles per box = 12 bottle equivalent, serving the, optimistically-estimated, approximately half of the class that might decide to picnic with us). So, maybe Black Box isn't that bad after all if the utility of seeing it go further with friends outweighs the enjoyment of a singular experience of red blend delight on a date with my wife...?
For now, I have essentially enjoyed my (Cup)cake and eaten it too, as my wife and I occasionally splurge on wine out for dinner and we also enjoy hosting for BBQ, but the spend-first, ask questions (and hopefully recoup the losses) later approach at the GSB is coming to an end. We're about to be responsible adults again... perhaps it's time to set a wine budget that accounts for the different use cases and utility of the various wines I enjoy and their respective price points?
[Bonus read: http://chicagoist.com/2014/07/22/putting_black_box_wine_to_the_taste.php
Since we know from today's reading that my palate probably won't match what a professional wine critics might describe (Don't tell me how I feel!), I'd prefer to send a review from some gal in Chicago I don't know, but proves my point that Blackbox ain't so bad if you want to have some drinkable wine around for an uncertain time period -- or, as I've described, "picnic wine" that can last between cookouts]
Wow! So disappointing, even if unsurprising. Thanks for sharing, Randy.
ReplyDeleteIs it possible to find the ultimate owner by reading the wine label or do we have to google to find out?
Perhaps one of the new apps could direct consumers to true ma and pop labels for those of us who'd like to spend our limited wine money that way...
Really interesting, particularly looking at Constellation's brands, many of which I really like. This reminds me of LVMH and its many fashion houses, such as Marc Jacobs, Fendi, etc.
ReplyDeleteRandy, you mentioned consolidation in other alcohol categories like whiskey, and it reminded me of this pretty snazzy "Bourbon Family Tree" put together by GQ a few years back: http://www.gq.com/story/bourbon-whiskey-family-tree.
ReplyDelete