Gary Vaynerchuk as Market Maker

March 11th, 2009

I just got back from a trade tasting in which I tasted the wares of a Sonoma producer (sorry folks, I’m keeping this a blind item) who I’d heard received raves from Gary Vaynerchuk a little while back. I told the Winery rep that I was guessing he hit pay-dirt after Gary’s vlogcast.

He imparted the following on me: a few months before, the winery had received accolades from Robert Parker, scoring a 91 and a 93 for two of its offerings. Subsequently, over the course of a few weeks, the winery received approximately fourteen orders that it could directly attribute to the Wine Advocate scores. Within 24 hours of the Vaynerchuk vlogcast, in which Gary scored one of their wines a 93, they received more than 400 phone calls and orders.

14 vs. 400? It’s pretty clear who the market maker is these days and it’s not Robert Parker.

There is little doubt that Gary is selling wine with his “reviews.” It’s worth noting, he’s not always selling it on behalf of the Wine Library, who I’m guessing probably only had a few cases of this item in stock. Undoubtedly, supplies dwindled at other retailers, and the winery is clearly a direct beneficiary of Gary’s dedicated following.

Interesting times.

19 Responses to “Gary Vaynerchuk as Market Maker”

  1. Gravatar Icon Ryan K.

    I know exactly who this producer is, and while very good, I’m not sure that their Sonoma coast Pinot really justifies this level of excitement.

    But still, it is not shocking given that Parker is not that big in California. If this were Bordeaux I think the situation would be different. None the less, Vaynerchuck is fast becoming a force within the industry.

  2. Gravatar Icon MasterGrape

    I’m really impressed by that. A lot of the time, web personalities can talk a big game and get a lot of traffic but I’m never sure how well they’re monetizing. It’s interesting to hear that Gary’s review showed that many direct interest phone calls to the winery (I can only imagine how many interested parties are pinging his store’s stock).

  3. Gravatar Icon Tim Elliott

    Have you seen any impact from wines you carry and Gary’s reviews? If, of course, you have any stock that he’s reviewed. How about any others reviewed by wine bloggers?

  4. Gravatar Icon gary vaynerchuk

    flattered and it just shows the world is changing, I am so excited to see awesome people in the wine world who are passionate make things happen! I love this site for example and told you when I saw you how impressed I am by your blog,effort and hustle :) Things are always changing and I just want to work hard to be a part of it!

  5. Gravatar Icon gary vaynerchuk

    PS: Tim your stuff rocks!

  6. Gravatar Icon jason

    Very interesting post. Thanks for sharing that data point. Tim guessing my blog isn’t driving as many sales as @garyvee :) Though I am trying to hustle!

  7. Gravatar Icon Deano

    This is awesome information….Like Gary says the game is changing and this shows that it really is. AWESOME!!!

  8. Gravatar Icon Off-Focus » Robert Parker vs Gary Vaynerchuk

    […] Here’s an interesting blog post over at domaine547: “Gary Vaynerchuk as Market Maker.” […]

  9. Gravatar Icon d547

    Thanks for the comments, folks.

    Ryan, though I see your point, I think that producers like SQN and Alban had their reputations sealed by high Parker scores. So I’m not completely in agreement with you that he’s not big in California…I do, however, think that his strengths are Bordeaux and the Rhone, as far as people following his ratings. Spain and Australia, less so now that Jay Miller has taken over the territory. What I find most interesting is what’s most effective these days as a call to action, and I think that the 14 to 400 statistic is startling for what it says about that.

    Tim, I have only carried a few wines that have been reviewed by Gary, including a Rocca Cabernet which he scored through the roof on a blind tasting, and the Valdesil Montenovo which he also raved about. In both of those instances, I definitely saw some traffic and sales bumps from the mentions. With the Valdesil, I had no idea why I was seeing the spike until I happened upon the wine mentioned in the WLTV forums. Prior to that discovery, I had been excited that maybe I was gaining credibility with my readers and customer base, as I’d given the wine my strongest recommendation. But it turned out I was just one of a few retailers that happened to carry the wine that came recommended by Gary. Oh well!

    Gary, it took you nearly 24 hours to find this post and comment on it. You’re really slacking these days, I was sure you’d get the Google Alert within hours and be right on it. Sheesh! Of course, thanks for the kind words, and for raising the profile of wine for all of us. Could you take a look at my inventory and maybe review a few more wines I have in stock so I can move some cases???!

    Jason, Deano, Master Grape - thanks for stopping by and contributing to the conversation. Looking forward to checking out your sites.

  10. Gravatar Icon James S

    I think it comes down to two qualities that Internet media (and Internet celebrities) have over any other media. Authenticity and loyalty.

    When online thought leaders have something to say, and say it with style and sincerity - the way Gary does - people believe it. And then they pull out their wallets.

  11. Gravatar Icon Kevin McCormick

    Excellent post and really points to the changing wine market. The fact is most wine consumers don’t read Parkers review or have a subscription to one of the big wine mags. They are turing to the web for reviews and when they find somebody that is honest and easy to understand they follow them.

    Not to mention the “big” wine publications are ignoring the wines most of America buys at their grocery store.

  12. Gravatar Icon Vanguy

    Very interesting info!
    It’s nice to see real data on stuff like this that we may intuitively get.

  13. Gravatar Icon AC

    really interesting post. looks like a sea change. thanks

  14. Gravatar Icon ines

    it’s about authenticity and transparency - BRANDING at its best (I am not at all surprised)

  15. Gravatar Icon Ryan K.

    d547: Sorry, I meant that Parker is not big in California Pinot. I wasn’t referring to Cabs and Rhone varietals, etc.

  16. Gravatar Icon domaine547 » Who’s Your Daddy: Parker, GaryVee or TBD?

    […] lot of you are here for one reason, and one reason only: Gary Vaynerchuk linked to a post I wrote about him being a market […]

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  19. Gravatar Icon neut

    Thanks Dude Nice Post . I found good in http://WWW.AdultPornBaseX.info also you can check it out.

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2008 “Bebame” Red, El Dorado County, California

Cabernet Franc (65%) and Gamay (35%) from - gasp - California! And only 13% ABV, pretty modest by California standards. If I tasted this blind I would probably have said it’s from the Loire Valley. It has pretty much nothing in common with the full bodied iterations of Cab Franc coming out of Napa. Juicy, light, delicious quaffing wine.$18 a bottle

2006 Telegramme Chateauneuf-du-Pape Rouge

Really balanced and smooth, this is a bargain of a Chateauneuf. Yeah, the 07s are lauded but what would I prefer to drink? This! It’s the second label of Vieux Telegraphe, from the same property but from younger vines. And it’s a deal at $33 a bottle.2006 or bust!

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Delicious and just in time for New Year’s Eve…this is the LA Times Wine of the Week, and we have plenty in stock. Order online, pick-up in-store!$14 a bottle!

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The Business of Saying No:

No, I am not a natural wine merchant.

And no, I am also not not a natural wine merchant.

So what exactly is my store, Domaine LA? This is a tricky question that I try to answer here.
________

A couple of months back, I participated in the first annual Los Angeles Natural Wine Week, spearheaded by Lou Amdur of Lou Wine Bar. At that time, I took some heat from a few folks around the Internet who felt I might have been merely capitalizing on a trend and didn’t see me as a true natural wine merchant.

The thing is, I’ve never claimed to be a natural wine merchant. When I started my business online a few years ago, I stated plainly that I wanted to sell wines I loved. I was an enthusiast with a fairly receptive, wide-ranging palate, and I considered learning about wine a journey I would be going on alongside my customers. While I’ve since expanded my business to include a brick and mortar space, my self-conception and mission statement haven’t really changed. But my palate has.

To be absolutely blunt about it, I used to love wines that I simply can’t stomach anymore. There are blog posts archived on my website that in retrospect make me cringe, paragraphs singing the praises of some of the most blatantly manipulated wines in the world. I once criticized a wine bar for not having any Southern Hemisphere selections; it’s now my favorite spot in Los Angeles. And today I carry barely a dozen Southern Hemisphere SKUs myself.

By and large, my palate-shift is reflected in what I bring into the store. Chris Ringland and Mollydooker have been replaced by Eric Texier and Thierry Puzelat; the California fruit- and alcohol-bombs, for the most part, have given way to wines from La Clarine Farm, Donkey and Goat and LIOCO.

As a result of my largely obscure inventory, almost every day I’m faced with customers asking for items that I don’t stock. On a regular basis, I hear:

“Do you have Rombauer Chardonnay?”

No, I answer.

“Do you have Caymus?”

Afraid not, I reply.

“What about Blackstone Merlot?”

So sorry, but no.

“Where’s the Veuve Clicquot? This is a gift. I need the recipient to know it’s nice!”

Sigh.

Saying no to people sets up a potentially risky relationship that may start and end with that one exchange—many customers want what they want and aren’t open to alternative suggestions. In other cases, however, that simple “no” can be the beginning of something beautiful, a dialogue that winds up with a customer who came in looking for the Prisoner instead going home with something like Morgan Twain-Peterson’s Bedrock Heirloom Red, a wine which, while perhaps not 100% natural, is a more honest “made in the vineyard” (yes, I know this is also a cliché) version of what the Prisoner purports to be.

Of course, sometimes that customer really just wants the Prisoner. Which leads me to my major confession here: despite more than a bit of ambivalence, I continue to sell the Prisoner, along with other wines that are by no means natural, wines that are quite frankly manufactured. The Prisoner sits on the shelf right next to the Bedrock Heirloom Red, and for the time being, it will stay there. At least twice a week people come in asking specifically for this wine, and, for several reasons, it’s a request I’m not—yet—willing to deny.

Even though I no longer drink the Prisoner, there was a time–not too long ago–when I did so happily. When I first started getting interested in wine, it was a bottle that captured my imagination and helped launch me on the journey I remain committed to today. So maybe I keep the Prisoner around out of a sense of nostalgia. Or maybe I keep it around to remind me how far I’ve come. Maybe I keep it around hoping that for those who ask for it, it will simply be their starting place just as it was mine.

Or, more cynically, maybe I keep it around because people buy it. Maybe it’s a crutch to lean on when I’m too tired to hand-sell the less familiar items on my shelves. Seeing something recognizable is comforting to consumers, and that comfort somehow lends me credibility; credibility is a precedent to trust. Trust is what enables me to recommend something different to a customer who normally drinks the Prisoner.

In this sense, the Prisoner is of great value to me, not just as an easy sell, but even more so as a gateway to all the other wines I have available. I don’t know that I’d be able to move as much of the Bedrock, an unknown wine with a tiny case production, without the Prisoner right next to it.
______

Saying no is extremely hard. Right now, I’m willing to do so 90% of the time, maybe even 95%. Call me a coward or a fake if you want. But I know where I started out, and it’s been a logical evolution. And while I’m headed in a particular direction, guided by my palate, it’s safe to assume I won’t ever be a 100% “natural wine merchant.”

I like to think there’s room for somebody like me—somebody with confidence in her tastes, who also takes into account modes of production in buying decisions; someone who has a particular point of view, yet retains an inclusive attitude. I am strong in my opinions, and enthusiastic in my passions. I never judge my customers, and hope that they’ll be as open-minded and respectful of my offerings as I am of their preferences.

So far, it seems to be working out. In recent months, I’ve brought in only one case of the Prisoner (less than a thousandth of a percent of its total production) for every three cases of the Bedrock (1.3% of its total production).

So, what am I?

I’m not a natural wine merchant. And I’m not not a natural wine merchant.

I’m a work in progress. And I’m okay with that.

wine jargon

Frizzante
From Wikipedia: Frizzante is an Italian wine term term for semi-sparkling wine (as opposed to Spumante, which is generally used for fully sparkling wines). Frizzante wines generally owe their bubbles to a partial secondary fermentation in tank. You might notice a light fizz or tingly sensation on the tongue with a Frizzante wine, compared to the more carbonated sensation that more fully sparkling wines yield.


Scorekage
Okay, so we made up this word yesterday after a great restaurant experience. We brought a bottle of wine with us, expecting to pay a corkage fee. But the restaurant either forgot to charge us the $15, or decided to be nice to us. We scored! Hence, “scorekage” has entered our lexicon. This can also refer to BYO friendly restaurants that don’t charge for corkage under any circumstances.


Frizzante


March 29th, 2008

Scorekage


March 23rd, 2008

Rioja


March 3rd, 2008

grapewise

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