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How a Chilean Wine came to the US via China…and won awards

May 16, 2013 4 Comments

Don Mateo Wines started with three global entrepreneurs, a passion for wine making and a vision to become world class.

So, what’s so special, you ask, lots of aspiring winemakers out there.

Yes, but how many have won four awards at the recent Wine and Spirits Wholesalers of America (WSWA) convention? And, how many have had a journey that began in China?

I first met the partners running Don Mateo Wines in late 2010 and was immediately struck by their business acumen, gained in global trading, and applied to the wine world. Their story is interesting.

Andy Lam and his brother Matthew were successful exporters of various products and commodities to Chile from China. Over the years, the currency exchange swings hurt their business and so they turned the ship around and began importing wine from Chile. Their passion about wine helped, and they began buying vineyards and wineries. Added to that was the patience and tenacity to develop top quality wines. They hit the Chinese wine market at the right point in time and the business flourished.

You can’t be a global wine player without the US market, so a third partner, Peter Loucks, entered the picture and applied his overall business skills to the wine business. Peter is smart and a quick learner so it’s not surprising that he soon realized that, unlike China, the supply of wine (Chilean and others) exceeded the demand. Consequently, growth here would be an uphill battle. Further, the mandatory wholesaler tier has become more and more difficult to deal with, as in “take on another wine brand, are you kidding?”

But, he knew that despite the hurdles, he had some key brand equities and assets. For one thing, Don Mateo is a memorable brand name for a Chilean wine and the brand symbol is both interesting and notable to consumers.

As you can see, the symbol/logo is the Moai (pr. mo-eye). These Moai are the monolithic statues of Easter Island, off the coast of Chile. According to their website “they reflect our commitment to discovery, craftsmanship and passion. These three elements have been the guiding principles for Don Mateo wines from Chile.” Might even stand for the three partners behind the venture. You never know.

If you asked the brand owners what is the single most important asset of their wines, their answer is most likely to be, the wine. Trust me folks, these are outstanding wines. But, in case you don’t believe it, think about the medals they won at the WSWA – three silver and a double gold.

Here’s the irony. Despite the entrepreneurial approach, despite their marketing and branding and, despite the high quality and good value, you would think wholesalers would be beating a path to their door. Instead, getting wholesalers to take on the line has been slow and difficult. Such is the state of the booze business and the plethora of brands on the market.

But, hey, the Moai on Easter Island have stood the test of time, so why shouldn’t Don Mateo Wines.

For you former Seagram folks out there… It might interest you to know that Jim Reichardt introduced me to them and their New Jersey wholesaler is Sam Ellias.

Scotch: Blends, Malts and Your Father

April 11, 2013 1 Comment

Single malts have driven the Scotch category for more than a decade with steady and consistent growth. Brands like The Glenlivet, The Macallan, Glenfiddich and Glenmorangie seem to drive malts and, in turn, malts drive US scotches.

Blended whisky is still the backbone of scotch, but even brands like Johnnie Walker, Dewar’s and Chivas Regal can’t seem to stop the hemorrhaging of this segment.

What does this have to do with your father?

Well, back in the day, those in the booze business felt that given 1) the difficulty of overcoming the taste hurdle of scotch and 2) it’s lack of mixability — if you found a scotch drinker, then you can be sure that his/her father introduced them to it.

That’s a problem today since most fathers stopped (or never started) drinking scotch in the first place. Besides, “my father’s scotch” is right up there with Oldsmobile. So much for modern day mentorship as a motivator for drinking scotch.

Enter Dewar’s Highlander Honey, the subject of my last posting.

I gave many reasons why I see this as a success so I won’t repeat them. Scroll down and see for yourself.

However, since writing that post, I’ve had occasion to speak with Arvind Krishnan, VP Brand Managing Director, Dewar’s and to taste the product along with some friends and scotch aficionados.

First, the Dewar’s people have done a great job of blending the taste of Dewar’s with fantastic notes of honey. This stuff is not artificial tasting and, the honey and scotch combine to provide a whole new flavor. As a result, they have also combined experience and exploration – as in the experience of enjoying scotch and the discovery of how pleasant and desirable it can be.

Here are two thoughts on the flavored spirits world. The Huffington Post wrote this week about flavored vodka under the heading, Flavored Vodka Companies Continue To Debut New Flavors, But Why? You can find it here.

When you get away from the kiddie flavors in vodka, you come across serious flavored American whiskies that are growing rapidly. Just this week I read that Jack Daniel’s Tennessee Honey has sold close to 500,000 cases in just two years.

I predict that not only will Dewar’s Highlander Honey succeed but also there will be a host of others on the market in the not too distant future. You can bet on it.

Oh, and that taste test?

It’s best summed up by the statement one non-scotch drinker made, “I had no idea scotch could taste so good.”

New Booze Products: Brilliant and Dumb

March 27, 2013 3 Comments

Wine and Spirits Daily had two announcements about new spirits product recently. One makes sense and the other, well, you decide.

Good Idea

The flavored whiskey category has been on fire with brands like Wild Turkey American Honey, Jack Daniel’s Tennessee Honey, and Jim Beam Red Stag among others. Now the folks from Dewar’s Scotch (owned by Bacardi) are entering the flavored whisk(e)y category with Highlander Honey, a scotch infused with honey.

Imagine, they have the audacity to try to break down the stuffiness and out-of-date sacred walls of the blended scotch category. Never mind that blended scotch growth has been declining to flat in the past decade while other whiskies (including malts) have been growing. It’s not about adapting to changing tastes, it’s about a stiff upper lip refusing to swallow change.

Check this out. The Diageo head of whisky outreach (huh? I think that’s a way of saying, ‘can I buy you a drink?’), was quoted as saying Scotch has too much “integrity” and “authenticity” to get into flavors. Diageo and integrity in the same sentence? My word! Also, the Scotch Whiskey Association is not very happy about it. Better to go down with the ship, eh, what?

Hey, it’s a good idea for the reasons I shared with Wine and Spirits Daily,

“It’s a terrific idea and well worth trying,” long-time industry exec Arthur Shapiro told WSD. ” First, the blended scotch market is declining and this could be a shot in the arm. Second, the flavored whiskey (US) brands have ‘greased the skids’ so consumer acceptance would be easier than it might have been before these brands came on the market. Third, it adds contemporariness to the scotch area and removes the stuffiness. Fourth, probably makes for a good mixed drink. Finally, I like the ‘seriousness’ of scotch and the fun of a flavored scotch product.”

Put that in your copper still and cook it.

You gotta be kidding me

Pernod Ricard, who until recently earned my respect for terrific innovations and new products, has launched what seems to be an April Fool’s joke.

They are introducing a line of new products under the Hiram Walker name called Mama Walker’s breakfast liqueurs. Apparently it’s intended to “tap into the comfort food, sweet and savory flavor combinations” trend (or is it fad?) not to mention the confectionary/cake vodka flavors. This breakfast of champions is available in Maple Bacon, Blueberry Pancake and Glazed Donut.

Come on folks, are you serious? Next thing you’re going to tell us is that they hardly taste artificial.

Can’t you just see the ad campaign?

“A bit hung over from a hard night of drinking? Looking for something to smooth out the rough edges? Forget about the all night diner and the bacon, eggs and pancake special. Try some of Mama Walker’s breakfast liqueurs… we’ll perk you right up with our original comfort booze. Just remember… your Mama knows best.”

Or:

“Tired of the same old breakfast? Cereal, eggs or fruit can be soooo boring… Start you day off right with Mama Walker’s breakfast liqueurs. What a great way to face the stress of what awaits you. Boss on your back? Kids on your nerves? Mama can help…Comes with or without a brown paper bag… But, remember, don’t eat breakfast and drive!”

Any thoughts on either product?