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