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WINE AS FOOD OR WINE AS COLLECTORS’ ITEM
Ross E. Anderson
Still Life.
(2009, Mar 10).
Introduction The purpose of wine does not adhere to any specific rules. It has
constantly changing purposes. Different populations or demographics
have their own perception on what wine means to them. Whether it is a
means of nutrition, of pleasure or both. The wine market must constantly
have their finger on the pulse of what their consumers want from their
wine in order to compete and succeed in the wine market.
When looking at this topic “Wine as food or Wine as collectors’
item” more closely, there are certain areas which may indicate a clue to
what purposes wine holds. For example:
-The long history of wine is necessary to cover in order to show the
progression of the industry over time.
-The current pricing of wine gives an indication of its purpose as does the
volume of grapes grown.
-The way branding is used and how some wine producers have entry
supermarket level brands which separate the high quality and bulk wine
in the market.
History
The earliest history of grapes is of fossilized vines from 60 million years
ago, but when Humans’ started making wine it was somewhere between
4000BC and 6000BC. It was initially thought to be only drunk by royalty
in Egypt. Over time quality became more important and methods were
learnt that helped with this. The Romans were very influential with wine
production, classifying grape varieties and learning new growing
techniques.
Over time wine developed into a valuable trading commodity, and the
areas of production spread throughout the world. LaMar, J. (2000).
Methods have constantly been refined to ensure quality. But over time up
to the modern day the role and purpose of wine has changed.
Current Industry
When looking at the current wine
industry we notice a split in
consumer’s demand, on one hand we
have the consumers which are looking
for a nightly table wine for the
purpose of having with dinner. On the
other hand we have the consumers
which are looking for something more
in their wine, something that is of
high quality, rarity and something to
keep which is considered special.
When making this division we cannot
say that some consumers will fall
under both of these demands.
Supermarket Trolleys. (2005, Oct 7).
Supermarkets
Looking at an example from the United Kingdom we see where wine is being
bought. “The current UK wine consumer for many of whom wine is now an integral
part of their lifestyle, bought wine alongside groceries.” (Ritchie, Elliot & Flynn,
2010). This quote gives an idea of how people look at wine, they are purchasing
wine alongside their food, as if it was a food item. In recent times in the United
Kingdom there has been a significant drop in wine being purchased from
independent wine merchants, and an increase in purchasing from supermarkets
(Ritchie et al., 2010). These consumers that use supermarkets as their primary
place to purchase wine, is it because of convenience or price? When asking, the
main point in the United Kingdom was “Wine should not cost more than meat
does.” (Ritchie et al., 2010). In the lower socially economic families in the United
Kingdom, having meat for an evening meal is very important, so it is thought that
wine should cost no more than meat (Ritchie et al., 2010). This further highlights
the theme that for these consumers in the United Kingdom wine is very much a
food item. There could be many reasons why they don’t see wine as a valuable
commodity, maybe the price of higher quality wine is beyond their means
financially, or simply they just don’t care about wine enough to invest their
attention or money into it.
Collectors
Bottles of Red Wine in Wine Cellar. (2006, Apr 4).
On the other hand ,we have the
consumers who are willing to
invest huge amounts of time and
money into their love of wine. For
these consumers there is a
prestige in owning wine from
certain areas, certain years or
even certain wineries. But usually
the underlying factor they all
strive for is a quality product.
This usually means high prices.
Collectors
An example of high wine prices was in 2006 Washington, America where
there was a large charity wine auction. “Collectors from around the country will
want to add some of these wines to their cellars.” (Business Wire, 2006). This
gives an example of the different purchasing environment where collectors buy
their wines, being an auction there is no definite price for the wine, and it would
be an event type atmosphere, differing largely from purchasing at a local
supermarket. At this same auction there were wines being advertised as being
one of a kind, and have in fact been signed by the winemaker, and have original
labels which have been made by respective local artists. (Business Wire, 2006).
This furthers to the argument that these collectors, are looking for a lot more in
their wine than to drink it for dinner the same night they have bought it.
So in the current market today it is seen that there are a number of wine
consumers looking for very different things in their wine.
What this means for The World of Wine
The seeming split consumer demand
of “bulk and cheap” versus “quality
and prestige”, is the driving force for
which the wine producers must
monitor. An example of this is in the
current Australian wine market. “THE
rising sales of major supermarket-
owned wine brands has sparked a
savage debate over the impact of
private labels and cleanskins on the
future of Australia's huge boutique
wine sector.”
(The Advertiser, (Adelaide). 2011 Mar
15). In the Australian wine market the
opportunity for small boutique wine
producers to reach the market has
been cut off.
Boutique Cellar Door. (2007, Jan 18).
What this means for The World of Wine
This is largely due to the two large super
market chains controlling the shelf
space with more than 100 labels owned
by them. In turn, this gives them huge
power over price and availability in the
Australian Market (The Advertiser,
(Adelaide). 2011 Mar 15). This can be
seen being from the increased demand
for cheaper wine, hinting towards the
fact that a majority of consumers aren’t
worried about collecting and investing in
wine any more. This trend in Australia
could eventuate in damaging the image
of the Australian wine industry on the
international front.
Challengers for the Future
Autumn Evening Vineyard (2005, Nov 6)
The wine industry is forever changing, it
seems it is down to the consumers what
purpose wine will hold in the future. There will
always be a market for the collectors, but with
supermarkets making it harder for boutique
wine producers to get their product to the
shelves, they may well become rare. It may
be up to the large wine producers to supply
both markets (for the low price consumers
and the quality seeking collectors), which
many are doing currently with their entry level
supermarket brands as well as their premium
products both being available.
Conclusion
The question or statement
“Wine as Food or Wine as
Collectors’ Item” is a very
complex one. Wine is whatever
the person who has it,
perceives it to be to them. But
as previously stated, the
different types of demand
shape and mould the wine
market tremendously, and will
continue to do so well into the
future.
Cognac and Wine Hediard in Paris, France. (2006, Dec 13).
References
Ritchie, C. Elliot, G. Flynn, M. (2010).International Journal of Wine Business Research.
Buying wine on Promotion is trading-up in UK supermarkets, 22(2), 102-121.
http://library.eit.ac.nz:2099/pqcentral/docview/578120025/1313A8E273B3804AF55/1?acco
untid=39646
Oleary, R. McCullon, H. (2006, Aug 2). Business Wire. Wine Collectors Near and Far Eagerly
Await 19th Annual Auction of Washington Wines.
http://library.eit.ac.nz:2055/docview/445188303?accountid=39646
Supermarket Wine Labels. (2011, Mar 15). Advertise, The (Adelaide).p032.
Stock.Xchng. (2009, Mar 10). Still Life. http://www.sxc.hu/
Stock.Xchng. (2005, Oct 7). Supermarket Trolleys. http://www.sxc.hu/
Stock.Xchng. (2006, Apr 4). Bottles of Red Wine in Wine Cellar. http://www.sxc.hu/
Stock.Xchng. (2005, Nov 26). Autumn evening in Vineyard. http://www.sxc.hu/
Stock.Xchng. (2006, Dec 13). Cognac and Wine Hediard in Paris, France. http://www.sxc.hu/
Stock.Xchng. (2007, Jan 18). Boutique Cellar Door. http://www.sxc.hu/
LaMar, J. (2000).Wine History. Science and Social Impact through Time. Retieved from
http://www.winepros.org/wine101/history.htm