I thought I would address a question that we get all the time, in the tasting room, amongst our wine Club members and with potential new restaurant or independent retail accounts that we are pitching. “Your wine is at _______??” (insert Safeway/Vons,  Lucky's, Costco). The tone of the voice can often be one of disdain.  

My answer to that question is an enthusiastic “Yes!” and then an under my breath “Thank _____.” (insert whatever deity/higher power you believe in).

The signifigance of the grocery chain has grown significantly over the last few years, and is so very, very important, especially in these economic times. Restaurants are struggling as dining out has become a luxury. People are eating in more often and therefore buying more at the grocery store. Grocery stores are doing more to become “one stop shopping” for their customers, expanding their offerings in all categories to include higher end, “gourmet” or “luxury” types of items. For example—I use a shampoo called Pureology—something I could only get at the salon or a special store. Safeway and Target now carries it. Also, specialty and local breads from Watsonville and Santa Cruz is carried at my local Safeway and Costco.

This trend obviously expands into the wine department. About 2 years ago, Clos LaChance was lucky enough to get a meeting with the beverage managers at Safeway. The “Cluster 1 and Cluster 2” (newly remodeled or new stores) stores that have expanded wine sections (with approximately 1,000 different wine SKU’s, no joke) took on three of Clos LaChance’s Hummingbird Series Wines. Those are our best selling wines now—the Zinfandel, the unoaked Chardonnay, and the Cabernet Sauvignon. Not just via Safeway, but through other channels too…restaurants and other wine shops.

In my little control group of 1, I would venture to say that the awareness of those three wines has increased significantly over the last two years because of the exposure at 200+ California Safeways and Vons, among other things. So when I get a restaurant I am pitching that asks if our wines are in the chains, I say yes! And that’s a good thing because now people will recognize our name on a wine list. And those that recognize the name are more likely to order it.

However, the great thing about Clos LaChance is that we also have wines that are not in the chains (because of the small volume) and are only available at the winery or a couple of restaurants/specialty retailers (those that are buying right now, which are not many). So there is something for everyone. Our Estate Syrah, Grenache, Petite Sirah, Cabernet Sauvignon, our Vineyard Designates—the Biagini Pinot Noir and Chardonnay, Lila’s Cuvee, etc. I could go on and on. In total, Clos LaChance over 30 different products. Considering Clos LaChance’s total volume (approximately 60,000 cases annually), we are talking about 26 different, small lot (under 500 cases produced annually), artisan-type wines (we have 6 wines that are made inm qantities over 1500 cases).

Having the three wines that we do in the chains helps sell through the other, more expensive products on wine lists or in specialty retail shops. Customers recognize the name and the brand because of our broader distribution. And recognition is half the battle when it comes to marketing Clos LaChance—especially considering that we have 50,000 competitors (there is at least that many wineries in the world….probably a lot more. Couldn’t find an answer to this question online.)

Sometimes the chains offer some pretty amazing deals—especially at this time of year. At Safeway, they have a “Club Card” that gives incredible discounts across all departments—sometimes “2 for 1” offers (I got one of those this weekend on pickled jalapenos, go figure).  Wine is certainly no exception. Knowing what I know about wine pricing and the distribution channel, the store and/or the distributor is making little to no margin on these deals. It doesn’t matter who is losing money at this point (well, it would matter if it was me, but it’s not)—all the matters is that the customer is getting a good product at an unbelievable price.

So when people call me and say “Wow, your wine is only $7.99 at Safeway, that’s almost half off!” I tell them…BUY IT. The pricing comes down so much because of larger deals our distributor makes with the account that are often across other brands. It moves wine, and raises awareness of our brand. Most people that drink it are amazed at the price (“I would have paid more $ for that!”) and keep coming back for more. These prices tend to be 30 or 60 day programs, so they won’t last forever.

I also get the question “Aren’t you afraid that the low price will bastardize the Clos LaChance brand?” I personally think that the only thing that will ruin a brands reputation is bad wine in the bottle. Everything goes on sale every once in awhile. Does that make you less likely to buy it in the future at the regular price? Maybe, but not if you have some brand loyalty.  I tend to stock up on things when they are sale, but I don’t stop buying them all together when the price goes back to normal. If I get a wine for eight bucks, but it tastes like it is worth fifteen? Point me in that direction.

As for our wine club, we really try and focus on sending out wines that are not widely available. 90% of the time that is the case, no problem. Sometimes, when we are grasping at something to put in the club (usually a white wine, we only have 5 different white wines) it happens. No problem, give us a call if you have any concerns and we can take care of it. We are working next year to make sure this does not happen…as our Wine Club members are our most important customers and we want to make sure they are getting wines that no one else can get. Ironically, next year will be one of the first years that Wine Club members are the only ones to get our Biagini and Erwin Vineyard Pinots. Yields in the 2006 vintage were very, very low. We have just enough cases to send out to our Platinum Club members. These two wines won’t even be available in the Tasting Room. Fun!

Does any of this resonate with you? Am I in a vacuum here? I would love any feedback.

There is so much more to say on this issue, which I will get to in future blogs. Thanks for listening to my rant and go buy some wine!