Thursday, January 15, 2009

Italian Wine 2008 - Report from Flyover Country

The intell is in. 2008 is wrapped up and put to bed. What an interesting year it has been. Lots of good data in this post, as long as you don’t mind it coming from flyover country. Not the high highs (and the low lows) of either coasts, but the steady drip of Middle America, the drum beat pounding. The mill of God grinding slow, but exceedingly fine.

I’m not quite giddy about the results, but considering that patch of Dante’s Hell we just walked barefoot through, not too bad. Italy, even with Brunellopoli and any number of shortcomings, is rising from the ashes of the world economic meltdown. Not to say 2009 is going to be a stroll in the glen. That it won’t be. Unless you are an importer or a merchant who just can’t stand people, it should be tolerable. But my warning (or prediction) is this: This is not going to be a year to get uppity or impatient. And as much as the world wants to help everyone to what they are entitled to, the pie must be sliced a bit thinner this year. Old vets and young startups alike, this year will be about the people left standing. So, talk among yourselves and make friends. On to the data.

I have at my disposal an analytical tool called Diver, pretty much the industry standard these days for mining data. One of our Diver Diva’s has set me up with a couple of markers that I can tweak. What I am reporting is the tip of the iceberg data, that is, I will not dive deep. For one, it is proprietary information. And secondly, it isn’t relevant to this post. But what I do share is an overview; let’s say the view from 30,000 feet as we are stealthing across flyover country. Middle America from Texas to Ohio, Iowa to Indiana.

Two areas, dollars and cases. Important for both because of the fluctuation of the dollar/euro exchange in 2008. For the most part, dollars showed greater increases (when they did) than cases. More with less. I analyzed sales from Italy, France, Australia, California, Japan and the whole kit and caboodle, that being everything wine, beer, spirits. Interesting year, but I already said that. It bears repeating.

This year Italy surpassed France in the world I look at. France is in the crapper. Champagne sales and high dollar Bordeaux, along with what seems to be a self-destruct mechanism in the French government towards the growth of sales of alcoholic beverages. I have no idea what they are up to in France, though I have read that perhaps the En Primeur (the annual Bordeaux showcase for the recent vintage) might or might not happen in March. This year they also host Vinexpo.

Australia and Italy were neck and neck in dollars this year. Impressive showing by Italy, seeing as the bulk of the sales of Australian wine are in the Yellow Tail price range. Foster’s wine sales in Australia have been lagging and that accounted in part for the Italian/Australian photo finish. Except Italy was trending up and Australia was trending down. The Italian market is in a bit of a sweet spot because the folks, who in the past would spring for a bottle of wine, say at $40-50 retail, are now looking to the $20-30 range. And there Italy has a great range of viable products. Not Brunello or Barolo maybe, but certainly a better than average Chianti Classico, an Aglianico, Barbera, plenty of options. And Italian culture is just hitting its stride here in America. What used to be a phenomenon on the coasts now is becoming more integrated in the developing cultural life of America and how she eats and drinks. That, along with a new political atmosphere, would be in most times a moment for a spike in growth. But seeing as we are still enveloped in the world financial meltdown, I remain optimistically cautious. This isn’t the year to gamble the dance contest on a newly learned tango. Maybe something like a waltz or a rumba. I have no idea what that is supposed to mean, but my inner editor let it get by.

I broke the analysis down to three areas of comparison: December 2008 vs. December 2007, 4th quarter 2008 vs. 4th quarter 2007 and all of 2008 vs. all of 2007. I was looking for patterns.

First off, December really pulled everything out of the tailspin. November helped a bit in the 4th quarter analysis but looking at the three areas of comparison, the 4th quarter (October especially) was where everything came unraveled.

California was mixed. High dollar volume and cases, but there is resistance to the prices. $60 and up California wines are dormant for now. Italy is in a good position to take some of that business, as long as we don’t let the Brunello consortium steer the ship.

While we’re talking about the embarrassment that has emanated from Montalcino, I am happy to report that even though it seemed to be all we heard last year, there are a slew of regions and producers who are going about their business and who haven’t been affected by the Montalcino meltdown. I’m sure somewhere Luca Zaia is patting himself on a back and taking a long drink of milk in a self-congratulatory victory lap. Would that it was just happening inside his head, but from what I can tell, he is itching to take credit for all the good that is happening.

Rising star? Japan and sake’. Huge increases (albeit on a small base) but the potential for growth is exciting. It seems that Japan is committed to quality. And while sake’ might never be another Pinot Grigio, it could take some business away from California and France, especially in Asian restaurants.

Pinot Grigio, by the way, showed growth in sales from production areas outside of Italy. That would be California, Oregon, Argentina and Australia. If the trend continues at the pace it is right now, in 3-5 years more Pinot Grigio will be sold from areas other than Italy. So a country that defined a category is threatened with losing the lion’s share of the business, out-hustled by California and Australia. Today I was in a retail store and saw California Pinot Grigio’s in the set with Italian Pinot Grigio’s. The Trophy Generation doesn’t know and doesn’t care.

In Texas, Italian wine now dominates the import market, being a larger dollar volume than any other country (Australia, France, etc), for 2008. And we’re talking about the land of Bud and Crown Royal. That’s huge news. New York might be the center of the world for most Italian importers, but the center has some shrinkage.

After 25 years in the hinterlands doing missionary work, it’s a nice affirmation that we are actually going somewhere besides just trying to outrun the authorities. Onward, through the fog.








Sunday, January 11, 2009

The Allure of Velour

We’re deep in the thick of winter now. The seersucker has been shoved to the back of the closet. Wool and other warm fabrics shelter us from the cold. And our wines? What comfort are we getting from them in these days?

I am fascinated by the use of velvety in describing a wine. That rich, deep pile mouth-feel a wine shows when it has a full flavor. And seeing as we often cuddle with cast-off fabrics of the past in this blog, why not embrace velour?

My first real brush with velour was with a 1975 Petite Sirah from Souverain. Bill Bonetti was the winemaker and he brought out a wine that even in the tumbler that it was poured into showed this thick, embracing and very seductive red wine off in a way that after thousands of wines and almost thirty years, it persists. Ya feel me?

For some reason a 1955 Biondi-Santi Brunello comes to mind. When I drank this wine we were profoundly ensconced in the 1980’s, a decade where velour was foundering. But the wine wasn’t. I remember the color as being this deep clay going towards the ripe crimson of an early morning sunrise. And the wine had some stuffing, real meat in the flavor, something you could wrap your palate around. Gorgeous, juicy, classic Sangiovese. And gift wrapped in velour.

In the heady days when California wines were styled as big immense reds, there were too many to recall on this post. I’d have to say a wine like Randy Dunn’s Howell Mountain Cabernet, in those early days, ran the plays for everybody on the valley floor. Now we have too many players on the field and those high price tags have a lot of them looking for an arena they can play in. The 4th quarter meltdown gave ‘em all a bit of a concussion.

Italy also has a Maremma full of velvety dawgs, but I’m not sure who be wanting ‘em on these corners. Yeah, they gots ‘em some bling, but the rest of us soldiers down the line, and the little people, they don’t have the cash to crack open a Bolgheri once a week.

Is there a plush red or two we can ride for the next six months or so and get on over it? Something you can get for a Jackson? Anyone reading this have any feedback? Remember the rules (Marco):the wine is lavish, rich and velutinous.

Sidebar: There is a hybrid roaming about. The cardinal aspect of this deviant has merged the feel of summer (seersucker) with winter (velour). You will find this among many winery owners especially in Bordeaux and once upon a time in Italy. They would walk around wine tastings in their winemaker’s jacket uniform. Benjamin Siegel popularized this in the last century. And we all know what happened to Bugsy, no?

The Italian stays true to his roots. Milk is milk, sugar is sugar and velvet is power. Velour is recombinant command. These two pictures illustrate.


Personally, I have been enjoying a little red from the Langhe, from Ca` Viola. The wine is Bric du Luv, 95% Barbera and 5% Nebbiolo. It’s a little spoofilato, hey we’re talking velour here, not linen. But it’s got me begging for more.





Thursday, January 08, 2009

Regarding Shrinkage

“There is a lot of juice in a shrinking market,” an Italian wine exec recently said to me in a meeting. I couldn’t agree more. This week, in the day job, we finally closed out our year. Initial reports are showing a rally in December and the Italian wine sales were better than I expected. In fact, in the flyover world that I track, Italy outpaced France and Spain (easily) and might have eclipsed even Australia. I will post a more detailed report when the bandwidth cools down in the building from everyone wanting to pull reports at the same time.

That said, I have had at least four calls this week from suppliers looking for a home. My terse advice in this moment is a two parter: 1) move here and dig in or 2) stay home and wait it out for the next 18 months.

The ark is full and there is absolutely no more room in the market for anymore Italian wine. If you have an importer and a distributor, stick with them, work with them. Stay where you are. If you are homeless, I am sorry for you. The market is over saturated. For now.



More to come.


Sunday, January 04, 2009

Exodus and Anamnesis

While visiting my friend Mario I noticed a National Geographic from 1916, the same as his birth year. Italy in 1916, the year my Aunt Mary and Aunt Josephine were born. They are all still alive and well. Here was a magazine with many great images of the Italy that both of their parents had left. Fascinating stuff, looking back at Italy some 93 years, to see how it has changed. The photographs on this post are from that issue.

Oddly, I think many of us want to find those back roads (and wines) of Italy in 1916. A return to a day when things seemed so much simpler and easier. But then one needs to factor in that time. 1916, World War I, with 37 million casualties (16 million deaths, 21 million wounded), an incoming influenza pandemic that killed 40-100 million people world wide, many younger than 45 years old. So, it wasn’t all rustic charm and simpler times, for those who lived through it.

Not to dwell in the past, especially one which, one might argue, has little significance for the new generation, folks from 14-30. There were barely paved roads, or toilets. Nano I-pods? Bluetooth? How about a toothbrush? No, it was like it happened a million years ago, to the inheritors of the future.

The oldest Italian wine in my possession is a 1936 Est!Est!!Est!!! Amabile. It will never be opened. It sits there, twenty years after the National Geographic issue, in the time of Mussolini, at the edge of another World War.

Wines in those times. Now we see them nostalgically, their wild yeasts and oxidation-rich profiles, and we’re not talking micro-oxidation either. A shame, because we talk about the heritage of great wine from Italy, but is there really much to ponder on before 1945, when the world experienced a change on such a level that in the Olden Times it would have been called Biblical? We sexy it up and call it “quantum change” as if the atomic age affected winemaking. Which it did, if not directly.

The linear acceleration of agricultural progress hasn’t been without its casualties though. The story teller, the master and the apprentice, the craft of the wine business, all this has morphed into some 15 minute superconducting version, where, in their place, now, young sommeliers walk on water in restaurants across the planet. I was there too, man. We have all been there before.

Maybe I should get out my Andre Simon, C.E.Hawker and T.A.Layton and read them now. These were writers telling the story of wine from a time long forgotten by followers of Galloni, Meadows and Vaynerchuck. It worked for Merlin, to travel through time from the future to the past; maybe with wine it would be equally magical. From what I read it sure seems folks want to find something that has gone missing.

When it comes to Italy, one can actually do this quite easily. Calabria or Liguria would be a great place to start looking for those core experiences in the Italian landscape.

Or, if you want something simpler, something a little less “nano”, you could read the old books, find the random National Geographic from a million years ago, or you could sit back, pour a glass of ancient Marsala and crank up the Rossini and let your imagination take you away.

I’ve found the Italian of our imagination and our dreams can be a better substitute Italy than the reality on the ground now or 93 years ago.

But if you want to go for the experience of Italy, and you have had your share of visiting museums and restaurants and churches and Autogrills, next time, choose the slow train from Rome to Catanzaro and take a trip back to an Italy that linear time has not accelerated with the rapidity of modernity. You can find vestiges of Pythagoras, Federico II, and Mascagni. You might even find a piece of your Italian soul which you have been looking for.






Wednesday, December 31, 2008

Starting Up in a Downturn

Andrea Fassone decided to start an Italian wine import business in the last quarter of 2008. Timing is everything. But unlike General Motors, he didn’t take 3 years and numerous trips to Italy to get rolling. He knew what he was looking for before he even got to America. The timing aspect has been a bit of a surprise, but in this short, end-of-year interview, I think you can feel Andrea’s sense of entrepreneurship and willingness to go boldly through the fog. Anyway, here he is in less than three months, up-and-running with his new baby, Enotria Imports. I caught up with him by phone as he was delivering wine through the holiday season. He sounded like he could use a little help, sales are brisk.

Read this interview; support this start-up (for now, selling in NY-Metro market) and remember : You heard it here, first.

Andrea came to NYC Aug'01-photo taken Oct '01 in front of the WTC site

Q. When and how did you get into the wine business?
A. I started in August 2001 here in the USA; before it was just a passion I inherited from my father. Then I had the opportunity to move here and work in the wine selling business thank to Sam Levitas and Eugenio Spinozzi, back then, partner-owners of Tricana imports.

Andrea with Eugenio Spinozzi and Fosco Amoroso

Q. When did you decide to start your own company?
A. I started to think about it in June and I decided in September. I wanted to be partner in Tricana but it wasn't possible, so I started to talk to a friend in Italy who called me several times with the will to start a new business with me.

Q. How did you manage to start your own company and get the wines in so soon?
A. The person I was in touch with has been in the business since ever and already had his contacts. We added some of mine and we started to get serious. I don't have to tell you if you want to achieve something you have to go and grab it.... Of course my partner’s experience (and my little experience) played a big role.

Q. Any particular surprises about starting a business in these economic times?
A. Not surprises, but often the same: Are you sure you want to start a business in this bad economy?
Anyway, people are still drinking wine, maybe less expensive, but still buying wine. So I focused on good wines at good prices to put together my portfolio.

Q. Do you have any wine regions or wines that you are particularly fond of or are focusing on?
A. Being from Piemonte and growing up with wines from that area I'm more for lean dry wines than big fruity wines. If you look at my portfolio you will see 3 Nebbiolo producers, from Roero, from Valtellina and Barolo area. (would you say I'm fond of Nebbiolo...?) .But the idea is to have wines from all over Italy able to represent the grape and the land where they are from.

Q. In your recent travels in Italy and America, what are some areas that really seem to have a lot of energy and excitement for you?
A. In Italy I really fell in love with wineries/vineyards in some extreme places. After a trip in Valle d'Aosta, Liguria, Valtellina and Alto Adige, I understood how wine has been part of the local culture, a need, a tradition, or it would not make sense to plant grapevines in such difficult-to-work areas. That is one reality I would like to show to the American people (I know I'm not the first...). On the other hand I see here in the States a growing attention to those realities. Italy is not only Chianti and Pinot Grigio and people are starting to appreciate the "culture" I mentioned above. This is a phenomenon that in NYC has been going on for years and spread through the country.

Energy in the USA? I like what I see in Austin and in Atlanta toward Italian wines.

Q. How do you feel about the oncoming New Year (2009)?
A. I think is going to be the survival of the fittest. Hard workers and passionate people will be fine and everybody else...we'll see.


Andrea Fassone
Enotria Imports

598 Hancock St.
Brooklyn (that would be in Bed-Stuy), NY 11215
917-226-5146
andrefass@aol.com

Last post for 2008 - Next post Sunday Jan 4, 2009 - Happy New Year! Felice Anno Nuovo!

Sunday, December 28, 2008

My Consigliere

When I was thirteen I thought I was going to grow up to be a photographer. I spent endless hours in the darkroom and carrying my cameras everywhere I went. Being shy, it was the perfect date for me at a youth dance. I could take pictures of the action and go into the darkroom later that night to print them. Often folks would come into the darkroom (it was at the same place the dance was, usually) and see what I was doing. Photography was a social magnet.

A few years later, in college and during the Vietnam War era, photography opened up the greater world to me. I met different folk than the ones in the small resort town where I had grown up. I even met a famous one from time to time.

A word about fame, something I know a little about. I grew up in a town filled with famous people (Palm Springs, CA) and learned very early not to make a fuss over folks who have been afflicted with it. Leave ‘em be, talk to them normal, change the subject away from them. Some of them might even make the grade to friendship. But, I ramble.

I am a walker. Love to walk the streets of a town. Rome, Paris, New York, San Francisco, Palermo, Naples, Chicago, Dallas. I once walked the route on Elm Street in Dallas where JFK was shot (grassy knoll) to the shop on the same street where John Hinckley bought the gun that he shot Ronald Reagan with. On a hot July day I took my trusty Canon VIT rangefinder and a new Canon AE1 and did my own shooting. The Dallas of that day has altered greatly.

New York? Since 1975, I have trudged the streets of that city camera and wine bag in tow. My childhood friend and photography co-conspirator Bruce took a fabulous street shot, worthy of a Weegee. Bruce went on to become a movie mogul and one of the greatest collectors of photography in the world. And still a friend and drinking buddy.

I spent time in the NY scene with Diane Arbus’ teacher, Lisette Model. Not much time, but enough to remember one cold afternoon in January in her apartment. I had already been to Arbus boot camp. It started in California and concluded in a bar in Milwaukee, a bar right out of the collective mind of Kubrick, Serling and Lovejoy. I had walked onto the set of a world that someone like Diane Arbus lived daily. And it scared the holy crap out of me.

I had my time with the world of reportage and photojournalism. One photographer from Magnum, to remane unnamed, asked my help in getting him and his art director through Tijuana for a photo shoot. An ad campaign for Pentax. I thought it odd that the photographer almost exclusively used his Leica M3 for the assignment. When I asked him, his answer seemed cynical at the time. Now, I think he was like a sushi chef, just using the best knife he had to cut the Toro.

And the old masters, so many of them I was lucky to encounter, sit awhile and soak up their greatness. They were called the f64 group. My entry was through Imogen Cunningham and Ansel Adams. In the darkroom with Ansel was a breakthrough, I still remember the warmth of that little room, and not in a creepy way. How often is it you can stand in the dark and be dazzled with brilliance?

Imogen, she reminds me a lot of my friend Alice. Petite, but never diminutive, cantankerous, strong willed and boy crazy. But a vision and a determination to walk her trail without fear. Imogen was a wonderful mentor to me in life.

On the fringe of the f64 group was Wynn Bullock. Wynn was the one who taught me about the vision thing. He schooled me in the philosophy of perception. Thanks to Wynn, some of the best photography I have ever taken was without a camera. I remember how supportive he was when I came back from NY, explaining to me that he also had to take NY in measures, not in giant doses. Like him, I needed the horizon.

My dad was a photographer and a film maker. I still have hours of 16mm reels of film he shot, some of it family, some Italy, and also Old California footage. He always thought I should take more sunset pictures.

Being a black and white kind of guy, I could never understand why he wanted to thwart my path. But fathers do that to their son’s even when they aren’t conscious of it. I love to watch sunsets (like sunrises better) but not to shoot.

My college teacher, Philip Welch, introduced me to many of the West Coast school. He was a student of Frank Lloyd Wright and had given me the entrée to that world. He told me about famous people. He said, “Call them up, knock and their door. If they are truly great they will talk to you, if not, they are only famous. You want to meet greatness, not fame.”

I’ve had a few friends through the years who made it to fame, but not quite to greatness. I have also had more than my share of friends who bypassed fame and went straight to greatness. I have photographed them, opened bottles of wine with them, danced with them, laughed with them, cried with them and walked through pools of Jell-O with them.

All along the way there has often been a camera nearby, my consigliere of consciousness.


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