Archive for the ‘Building BC's Wine Industry’ Category
B.C. Wine and the Ideology of Quality
Posted by Shea in Building BC's Wine Industry, Musings, Spotlights, Vancouver 2010 Olympics - BC Wines on March 4th, 2010
With my series on B.C. wines over the Olympics I’ve done something I have never really done before – I’ve reviewed free samples sent to me by wineries. My logic behind this practice was as follows:
1. Arg, the Olympics is coming, how will I get to work?
2. Well I guess a lot of people will be celebrating B.C. during the Olympics – that’s good.
3. Wait, why are all Olympic venues dominated by large multi-national corporations?
4. No one will be celebrating what is truly B.C. during the Olympics!!
5. What can I do?
6. Well, I don’t usually enjoy or drink that many B.C. wines, but perhaps it’s time to do a profile on B.C. wineries during the Olympics.
7. But, I can’t really afford to pay for wines that I wouldn’t normally drink. I have a limited budget and like to spend it on things I’m excited about.
8. Hm, well since I’m going to put a ton of effort into researching, reviewing and writing about these wines, maybe the wineries will just send me samples. It seems fair and reasonable.
9. Ok, I’ll do it – at least to give the small guys a voice during the Olympics.
During this process I’ve been reading a lot of opinions and criticism about wine writing in both the traditional media and blogging. Complaints about bias and lack of integrity abound in the world of wine lovers and industry types. What are some of these concerns?
• Wineries and wine associations pay for free trips of wine writers and those connected in the industry. How can these individuals offer fair and unbiased opinions?
• Corporate interests are dominating the public’s access to and appreciation of wine. There are no real venues in B.C. to market and share small artisanal and family producers that are kicking the SH*!()$* out of the big guys in terms of quality.
• Some wine bloggers never write negative reviews, and simply lap up samples of low quality wine and shill them on the public in puff pieces.
• Some wine publications do exactly the same thing.
No one likes to be unpopular. It’s tough to be truly and fairly critical – to strike the balance between accuracy, fairness, and honest opinion. It’s also tough, as an amateur and in a media environment where advertising dollars are flushing down the drain, to afford to taste and drink the 1000’s of wine it is necessary to drink to educate your palate. The more I think of it, the more I realize that it is costly and risky to have integrity as a writer and journalist – but it is just these sorts of people that we need to support.
My philosophy is simple – one should be independent (fiercely so) and one should not be writing about wine if one’s career depends on connections within the industry and if one can advance their career by being sycophantic. These are just principles of journalistic integrity, much of which is depleting as it is more and more difficult for news agencies to be independent from corporate interests.
There is also the sheer ridiculousness of writing about wine based on tasting through 100’s of wines at tastings and press events. Now, I appreciate these events for what they are for providing a means to educate my palate – but to be honest, I never really understand or appreciate wine unless I’m sitting down drinking it with a meal or just sipping it during good conversation. You know, like most people do when they actually drink the wine we write about.
Now, this leads me, somewhat as a digression I suppose, into the Ideology of Quality. When I received these samples for the B.C. wine tasting, I also received marketing materials. Here is a common theme in the marketing materials:
• This winery was founded on passion and love for the vine.
• We believe in putting the best efforts into our vines and wines.
• We believe these are some of the best wines of the type in the world!
• Look at all the awards we’ve won!
In addition to these common themes, some more specific brands of the Ideology of Quality are:
• We believe in minimal intervention.
• We let the fruit speak for itself.
• We use extremely low yields.
• We want the land to speak through in our wines.
• We use the most advanced techniques possible to produce authentic high quality wines.
• Look at all the awards we’ve won!
Here are a few things I know. “Minimal intervention” is a near meaningless phrase in itself. What is minimal? Wine making IS intervention in nature. Minimal is meaningless. What matters are the particular choices you make when you grow, harvest, and vinify grapes. It’s not a question of no interference and much interference, it is a question of your philosophy of production – of your approach to creation and the process of human interaction with nature. Ya, so that’s meaningless and yet it’s used on consumers all the time.
“We let the fruit speak for itself”. Wha? Ok, but you also crush it, and stick it in vats and use yeast to ferment the crushed grapes into an alcoholic beverage, and you probably add sulphur and oak, etc. And yet, these words are commonly spoken to the average wine buyer or winery visitor. Again, it doesn’t really mean anything.
Passion for the vine. Ok, that’s great. But, this phrase is now a cliché, which means it is devoid of particular meaning. If you want to use the word passion and wine together, you better tell me what you mean by passion.
I can’t even go on with this list because it is so frustrating. What happened to quiet confidence. Since when have marketers and marketing lingo infected the wine world to such an extent that everyone is afraid to be distinct from each other? We might stand out!? But, what if no one likes us? I just had a flash back of my first high school dance.
So, this ideology of quality seems to promote the ideal that “minimal intervention”, “passion”, “low-yields”, etc. are markers of quality. But there is very little discussion of philosophical and human motivations beyond “passion”. I begin to suspect the sincerity of these sorts of proclamations when I learn that recently no wineries in B.C. expressed an interest in learning from an expert on biodynamics from France who was willing to come into the province and share his knowledge – not a single winery.
I’m suspect of a winery that can’t express itself any more effectively than “we just try to make the best wine possible.” Since, in the end, what is possible and what is to be hoped for are intricately entwined – and the last time I checked hope is a fairly multivalent concept and one that, in any effective way, cannot arise from hubris. It is integrity and humility that produce the most effective hope, and the most diverse possibilities.
So how do all these ideas link together? One simple phrase: the Ideology of Quality. Whether via a wine writer, marketer, or winery itself, the wine world seems afraid to deviate from a standard vocabulary and semantics for expressing wine quality (points-based rating systems are another culprit here). Instead, true expression is captured by other interests, by biases, by marketing, by the desire to fit in and sell wine. Of course, underlying all this is a most fundamental human instinct: survival.
So much of the wine world seems to be caught up in its own survival. Unsuccessful writers dine on Kraft Dinner each night while the successful ones try to protect their interests (and massive cellars of free wine) and avoid that dilemma by folding their personality and expertise into a pre-formed model. Once you’ve breached that inner circle, it’s like a pack instinct to keep out all pretenders to the throne.
Wineries? Well, they’re scared shitless that they’ll never make back their initial investments. Others are doing very well and are simply trying to diversify and spread their brand. But, they seem afraid that if they go off-message they might jeopardize the basis for their success. I am no stranger to these feelings – that is what it is like to have a career and try to survive in the business world.
But, what gets lost in this giant race is distinct and particular expression: real thoughts about wine, effective criticism, small producers who either don’t understand the game or simply don’t want to join it. There must be a better environment within which one of the world’s most profound agricultural products can be explored, loved, and discovered. We are all far too concerned with our own survival and the ideology of quality to actually and humbly discover how to best entwine ourselves with the ‘natural’ world through wine. We are part of that ‘natural’ process – but we are vacating this meaning from ourselves with each puff piece, marketing blurb, and cliché.
So, while I plan on continuing writing profiles on B.C. wineries for the sake of the industry and the small guy, I have to come out and say that I still have tremendous difficulty saying that B.C. wine is at the same level as the great wines of the world, of all types from weekday meal wines to wines for 50th wedding anniversaries. B.C., with the exception of a very few producers, is still too caught up in the Ideology of Quality to actualize its potential. Right now it is just trying to “make the best wine possible” – but it has homogenized the hope that gives meaning to possibility. Until wineries take that next step and are bold enough both to have their own voice and beliefs, but also humble enough to listen and learn from others, we will languish where so much of the world’s wine languishes – in mediocrity.
The Costs of Youth, The Price of Quality: Building BC’s Wine Industry
Posted by Shea in BC Wine, Building BC's Wine Industry, Canadian Wine on September 4th, 2009
In a recent piece I wrote on La Stella winery I lamented the price of British Columbia wines and put out a general request for information as to why the prices of BC produced wine seem so high. A few enthusiastic responses from various industry types prompted me to do some real research and get to the bottom of the pricing enigma. After some digging I found not only some very enlightening answers, but also real insight into the BC wine industry and its struggle for identity, quality, and market share.
With the advent of the Vinters Quality Alliance (VQA), which guarantees the origin of Canadian wines, BC wine producers started to focus more on quality and less on quantity and a quick buck. What the free trade agreements did was bring competition into the province and prompt the government to fund the uprooting of the old vines and the planting of the Vitis Vinifera varieties from Europe (Merlot, Chardonnay, etc.). Within the last 20 years or so the number of wineries in BC has exploded into the hundreds because of the modernization forced by the trade agreements. In fact, it is likely that we owe the breadth of our wine industry to the competition brought into the province from other countries. This competition forced old wineries to focus more on quality and gave a good reason for new wineries to fill the niche of quality 100% BC grown wines.
But this is only the beginning of the journey. Over the last two decades wineries have had to experiment, mostly on their own dime, in discovering how best to express the local ‘terroir’, or soil and climate conditions. What grapes grow best where? What are the best single vineyard sites and which plots have better potential for growing blending grapes? What are vineyard ‘best practices’ and what sort of winemaking techniques work for what sort of wines? And, the ultimate question, what is the best way for BC to find its vinous identity?
BC has yet to find its parallel to Oregonian Pinot Noir or Napa Cabernet Sauvignon. As a young wine region it is still experimenting with varieties and styles. And, this experimentation is expensive. While there are some government programs to aid in the creation of biodynamic farming and some research, the costs of figuring out the best grapes, the best plots, and the best clones are largely shouldered by the wineries. Unlike a region such as Bordeaux, BC wineries do not have hundreds of years of tradition to rely on and capital costs have not been borne by their ancestors.
Beyond the research issue there are three distinct reasons for the higher prices of BC wines: land prices, climate, and labour costs.
Land Prices
Land in the Oakanagan is expensive, very expensive. According to Rasoul Salehi, executive director of the Enotecca group of wineries, “a decent vineyard in Oliver, osoyoos and naramata goes for 150-180K per 
acre”. Bradley Cooper, winemaker for Township 7 and producer of his own Black Cloud wine, says “prices start in the 90K/acre [range] and go up from there. Recently, some vineyards were being offered for close to 120K/acre.” Comparatively, vineyards in South America or Australia cost as low as $5000 an acre, and even the best sites can be purchased for $50k an acre. Sonoma County vineyards, with their beautifully sunny climate, old vines and established reputation, can be purchased for between $70k to $90k per acre. Even next door in Washington state it is possible to buy vineyard land for $10k to $20k per acre. And, lest we forget, many of the wineries in Europe have been passed on from generation to generation within the same family, meaning the land was bought and paid for a long time ago.
What are the reasons for this high cost? Pressure from the retirement community, who see the Okanagan as a choice retirement destination, drives land prices up. Furthermore, there just isn’t as much land available in BC for vine growing due to natural conditions. Thus, despite my earlier skepticism about land prices, clearly they do play an important role influencing the prices that BC wineries have to charge in order to turn a profit.
Climate
Ask anyone in the world about Canada and their first response is usually some unclever remark about the cold weather. However, as Canadians we do understand the truth of this reputation for, even with its moderate climate by Canadian standards, lower British Columbia still has short growing seasons and the interior sees frost and snow earlier than any other wine region in the world. As Mr. Salehi explains, “harsh winters kill many vines that require replanting and it’s not [so] simple that you take old vines out and you put new ones in. There is much more to it than that.”
Labour Costs
Unlike South America where labour costs are extremely low, or even California where many wineries use illegal Mexican immigrants to reduce labour costs, the cost of labour in BC is very high. Casual labour in BC costs about $13-$15 an hour compared to perhaps $5 an hour for an illegal immigrant labourer. At La Stella, Mr. Salehi explains that “in our particular case we hand pick in 30 lb picking bins and then double sort the fruit as opposed to dump the 1 ton macro bin into crusher and then tank. As a result we employ 14-16 people paid 13-15 dollars and we process 1 ton of fruit in 1.5 to 2 hours as opposed to process it like a typical winery that takes 10 minutes to process 1 ton, with 1 person not 14-16.” What does this mean? Making better wine is more labour intensive and requires more attention to detail. The result? Higher costs and, accordingly, higher prices.
I’ve written about the legal framework that governs BC’s antiquated liquor distribution and licensing system, but I have not stated clearly enough how this impacts BC wineries. You might wonder why you can only get the best BC wines in private stores, VQA stores or directly from the winery but not at your local BCLDB. This sad situation exists because if BC wineries want to distribute their wines through the BCLDB stores, their customers will have to pay the extraordinary markup of 117% that BCLDB forces on all other wines they sell. By avoiding the stores, wineries can offer better prices to their customers. But at the cost of what? At the cost of distribution and exposure to the huge number of people who either don’t go to private stores or don’t even have the option to. Is this fair or reasonable? Isn’t the BC government supposed to support its wineries and not make it difficult and absurd to sell them at the government run liquor stores?
[NB CORRECTION: The BCLDB forces BC wineries to deeply discount sales to the BCLDB in order for them to acquire that 117% markup. Thus, wineries make more money selling to private stores, and if they want to sell through the BCLDB they have to either absorb the loss or increase the price of their wines. See Paul Rickett's comment at the end of article for more details.]
Furthermore, because of the Importation of Intoxicating Liquors Act it is illegal for BC wineries to ship their wines across provincial borders and sell to consumers in other provinces. Al Hudec of the BC law firm Farris explains the legalities of this in his article “Reforming Canada’s Wine laws” where he states:
“Canada’s liquor laws are an 80 year hangover from the end of prohibition. They rigidly regulate every aspect of wine production, bottling, packaging, labeling, pricing, advertising and shipping. Canada’s federal Importation of Intoxicating Liquors Act, enacted in 1928, gives provincial liquor control boards monopolistic power and control over the importation, inter-provincial shipment, distribution and retailing of wine in Canada. Under this law, a friend from Calgary can share a glass of pinot gris on the patio overlooking Burrowing Owl’s vineyards in the south Okanagan Valley, but if she takes a bottle of Burrowing Owls’ highly acclaimed merlot back home across the British Columbia- Alberta border, she commits a federal offense. Similarly, a colleague in Toronto breaches federal law by purchasing a case of Quail’s Gate proprietor’s reserve pinot noir or Heidi Noble’s Joie Noble Blend on the internet for shipment to Ontario.”
This ludicrous situation exists because of an outdated bureaucracy that is more interested in protecting itself and its myopic views of how to build revenue than growing a local industry, creating an efficient modern distribution and licensing network, and probably in the end increasing the revenue poured back into government coffers. Why wouldn’t we want to reform this system? I hope for the sake of BC wineries that change is on the horizon.
Conclusion
Given the industry’s youth, the lack of old vines, time-tested methods and agricultural practices, and its massive start-up costs I can fairly say that I now understand why BC wines are so expensive. For me, even if competition from around the world is making better wine for better prices, understanding the challenges faced by the BC wine industry adds a level of depth and complexity that would otherwise be missing. And, even if pursuit of quality is expensive, I still believe that the industry cannot rest on its laurels or simply on local pride. Instead, it should aspire for more and always push to make the best wine possible for the best prices. With time, practices and techniques will improve, capital costs will be recovered and, hopefully, prices will drop. However, to achieve this goal, BC wineries really need a modernization of the liquor distribution system in the province, and the opportunity to sell and market their wine to Canadians who do not live in British Columbia. Doing so will help create a reputation for the industry and will further push quality improvements and price reductions. The more consumers are aware of the challenges and speak vocally about modernizing BC’s antiquated distribution and licensing system, the better chance there is that BC’s wine industry will not only continue to prosper, but will grow into an internationally respected brand.
“We can’t solve problems by using the same kind of thinking we used when we created them.” ~Albert Einstein
