Wine and spirits are typically sold in the same stores, but the customers are not the same at all. This has long given marketers trouble: if they try to sell wine the way they sell vodka, they run into a completely different consumer mind-set.

The difference is brand loyalty. Spirits consumers are extremely brand loyal, perhaps as a by-product of where spirits are most often consumed: in bars. The whole bar atmosphere encourages call-brands, thanks to spirits companies’ multi-million-dollar branding campaigns. These days, most consumers order cocktails by the base spirit: a Grey Goose martini or a Ketel One cosmo. Doing so sends a signal to your friends—that you have class, (you didn’t name the super premium spirit), but that you’re not cheap, (you didn’t go for bottom shelf). A cosmo drinker might not be able to tell which vodka is which in a blind tasting, but that has little to do with brand loyalty.

In contrast, many wine drinkers love trying different varietals from different countries. True wine lovers are always willing to experiment. There are exceptions of course, but most people choose variety: Pinot Noir tonight, Sauvignon Blanc tomorrow. And within their favorite varietals, wine drinkers don’t get tied down in brand rivalries. Nobody proclaims himself a Patz & Hall Pinot Noir drinker and says he’d rather die than drink Williams Selyem.
That means wine lovers often adapt to a difficult economy more easily than spirits drinkers. When money is tight, people don’t give up drinking; they trade down. For a spirits drinker this can feel like slumming. A wine drinker, however, will shrug and look for great value in a different price range.

For example, consider Sauvignon Blanc, one of my favorite varietals. Sauvignon Blanc is one of the world’s greatest food wines; it’s crisp and refreshing, and when it’s not oaked it seems to go well with just about anything. While people buy it by the case, making it a little more price-sensitive, no one can stock up too much because Sauvignon Blanc is best when fresh.

Sauvignon Blanc grows well in many places: France, New Zealand and, of course, California. In economic boom times, people line up at state stores for brands like Rochioli, Duckhorn or Cloudy Bay. These wines might cost more than $30 a bottle, but they have the pedigree to demand it. These days, though, it’s easy to switch to a Sauvignon Blanc that’s less famous and costs a lot less. You can look to countries like Chile: Veramonte and Los Vascos are two good value-oriented brands. Or seek out a relatively unknown Sauvignon Blanc from a great region, like Thea Sauvignon Blanc from Dry Creek Valley, a cool part of Sonoma County that’s good for the grape. Thea is made by a small family winery, and the fact that they don’t have to buy their grapes from elsewhere keeps the price down.

If Thea were vodka, owner Daniel Donahoe would have a real problem selling it. Consumers would say, “What’s this Thea stuff? Where’s the buzz? Who’s the mascot? Do any rappers or models drink it?” He would have to spend a fortune on marketing.

Fortunately, wine lovers don’t think that way. They’ll see a Dry Creek Sauvignon Blanc at a good price. They’ll see it’s from a small family winery. And they’ll put it in their shopping carts. For wine lovers, brand and image are secondary. Instead, it’s all about quality and value. That’s what drives me to keep finding great wines that people love, even if no rappers or models are drinking them—yet.

Bryn Mawr’s Jonathan Newman served as chairman of the Pennsylvania Liquor Control Board, the largest buyer of wine and spirits in the U.S., and was named Wine Enthusiast’s Man of the Year in 2003. He now heads the wine buying firm Newman Wine and Spirits, online at newmanwineandspirits.com.

1. Absolutely agree! If you love wine, you don’t have to compromise quality to “trade down.” I was addicted to a very tasty Los Vascos red (a Cab.?) several years ago, partly because we could buy it for about $12 a bottle! It was insane, we thought, to find something so delicious for that price. Of course, the price eventually went up; I guess the secret got out!

   Posted by Nancy Horisk-Sherr | October 29, 2008, 10:13 am