Ryan O'Connell / Business Insider

Business Insider FINANCE . June 26. 2014.

3 Ways That Winemakers Trick You Into Paying Too Much

wine tasting paris

Unless you’re a wine connoisseur, finding the right bottle can be tricky. It’s generally accepted that the more expensive a bottle of wine, the better it is.However, Ryan O’Connell fromNakedwines.com says belief is prompting winemakers to up their prices, sometimes unreasonably so.

Nakedwines.com is a customer-funded winery that helps independent winemakers set up a business.

O’Connel, a marketing manager-turned winemaker says that the day he entered the production side of wine, he began spotting patterns — ways that winemakers could potentially take advantage of consumers.

Here are three main indicators he gave us to tell whether or not you’re paying too much for a bottle of wine.

1. Award competitions

It doesn’t take much to convince the average wine buyer that a medal means high-quality.

“In the industry, we all know that medals and competitions of that sort, especially in the U.S., are pretty much luck-based. So many competitions award medals to 80 percent of the entrants, that it’s just kind of a money machine for the people running the competition,” O’Connell says. “Those medals are worth about as much as the blue ribbon on a PBR.”

He says that large production wines can pay a lot of fees to rack up awards in easy competitions. Good indicators of a trustworthy wine competition include locality, a diverse panel of judges and a low percentage of awards. Several good competitions O’Connell mentioned were the North Coast Wine Challenge and the International Wine Challenge.

2. Bottle packaging

Like most products, winemakers can get away with higher pricing just by spending more on the packaging. To tell if you’re paying for the packaging or the wine, O’Connell recommends feeling the weight of the bottle first. He says some companies use heavier bottles to make people subconsciously spend more.

Another embellishment winemakers add is the punt, or the indent on the bottom of the bottle. Luxury wine punts usually measure about 1.5 inches, which means more money spent on design. Although larger punts make for more stable shipping, O’Connell says it’s a pretty good indicator of how much effort was put into the packaging.

Even things opacity and color of the glass can cost extra. O’Connell says once you’ve noticed the differences once, it becomes easier to pick them out in the store.

“If you’re buying wine for $10-15 and it’s got expensive packaging, you’re probably putting more money into the packaging than the grapes. If you spend $100, then there’s a fair chance that the winemaker just spent a ton of money on the fruit, AND a ton of money on the packaging,” he says.

3. Regional acclaim

When buying wine from a famous region, you’re paying for the region’s brand just as you’re paying for the bottle.

“If a region is really world-famous, then it’s probably spent a lot of money achieving that world fame,” O’Connell says. “Then everything gets more expensive as a result of that marketing expense.”

Not that those regions don’t deserve their reputation. But O’Connell believes that it’s hard to extricate the costs of the marketing from the costs of actual wine production.

As a work around, O’Connell suggests finding a region nearby that makes a similar style of wine. You may end up paying a quarter of the price you’d find for a celebrity region.

For beginners, find some local wine stores. Talk one-on-one to winemakers who can open up some bottles and let you taste their wines. Once you familiarize yourself with the different regions and their tastes and prices, you’ll be able to better understand what you’re getting with your money.

Read more: http://www.businessinsider.com/3-ways-that-winemakers-overcharge-2014-6#ixzz36lehdBe0

Christophe Juarez spoke at the Université de la Vigne et du Vin in 2011 in Ferrals les Corbieres.  This is a synopsis of his lecture and my reaction to what he’s saying.  This is one post in an ongoing series about the Universite de la Vigne et du Vin.

Christophe Juarez a l'universite de la vigne et du vin

Christophe Juarez

Christophe Juarez, France, ton vin est dans le rouge – Adapting to the modern wine world

Juarez enumerates many changes in wine consumption that result in a need for change in wine production or at least wine marketing. In many ways, his presentation served as a counter point to Jacky Rigaux‘s.  While Jacky was a bit academic and high minded in his search for what a winemaker ought to do,  Juarez focused on what a winemaker has to do. It’s a much more pragmatic outlook.  Although it’s still a bit simplistic.  But sometimes a message has to be simplified to be conveyed.

Where Rigaux said “Cepage is a first name while terroir is a family name,” Juarez will say “Cepage is unavoidable.”  We can have cute witty notions about how terroir is more important than grape variety (I feel this is true), but ultimately, most new world wine drinkers want to know the variety and care much more about that than where the wine is from.

Juarez doesn’t deny the marketing potential of place.  In fact, he concedes that France is a huge selling point.  People love France.  But he also notes that having too many regions spoils the pot.  If most people only remember a dozen different wine brands, is there place in the market for somewhat obscure AOCs?  If there will only be a dozen denominations in the public conscience, should we spend energy on branding Corbieres, Minervois, and so on?  Or should we just focus on a bigger brand like South of France and a grape type?

Juarez will also say that the grower/author is crucial to promoting a place.  The place is only worth what it produces in his estimation, and the men and women who tend the land are key to that equation.

He also notes that brands have an advantage over individual people because brands are eternal.  Mortals will die, but brands can persist.  Brands can identify a style and go on in perpetuity.

He also warns against a “surenchere vers le haut”.  If we create high value brands hoping that they will drive the whole market forward, we might be disappointed.  For one thing, premium value brands have a hard time pulling up entry level brands.  Additionally, shifting markets and economic hardship might result in a general move toward bargain brands instead of luxury brands.

All in all, the presentation concludes that we have to create quality wine with consistency and a mastery of bottling and other technical elements.  I think the conclusion falls into the land of caricaturization.  It ends up being all about creating a reliable product that people can buy without being afraid.  I’d like to think that wine is art and that sometimes people buy bottles not knowing what to expect.  But maybe that’s impractical.  Tough questions at the Universite de la Vigne et du Vin!

How to find us

Domaine O’Vineyards, located in the North Arrondissement of Carcassonne, is just minutes from the Carcassonne train station, the Medieval City, and the Carcassonne Airport.
GPS coordinates: 43.259622, 2.340387

O’Vineyards
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Wine Cellar. Winery Visits. Wine Tasting.
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North Arrondissement of Carcassonne
885 Avenue de la Montagne Noire
11620 Villemoustaussou, France
Tel: +33(0) 630 189 910

  1. Best by GPS.
    Follow the signs to Mazamet/ Villemoustaussou using the D118. At the end of the last straight part of D118, you will come to a roundabout with the Dyneff gas station.
  2. Take the exit towards Pennautier. Continue 500m to a small roundabout and go straight over.
  3. Look out for the second road on your right, Avenue des Cévennes which curves up hill (about 1km) to Avenue de la Montagne Noire on the left.
  4. At the last juction, bear left. the road sign “Ave de la Montagne Noire” (confusing as it seems to show a right turn)
  5. After another 500m you will see our red brick color building in the middle of the vines.
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