Saturday, April 25, 2009

What's in a wine club?

Not alot, according to the Guardian's consumer affairs correspondant Miles Brignall. Just a classic case of sour grapes? identifies three main problems with the endless wine club offers that have moved on from sunday supplements to bank statements and tea-time TV: (i) the 'to good to be true' introductory offers, (ii) the 'book club' style automated repeat purchase and (iii) the domination of the wine club market by Laithwaites/Direct wines, which shifts a staggering 4.5 million cases to some 800,000 customers across its numerous brand tie-ins every year.

Since we're about to relaunch our own wine-club, we have more than a passing interest in this subject. But while it seems fair to question the current status quo, Brignall's article skirted the most important question: just how good is the wine? Taking his concerns in turn it seems a little harsh to question the need for a 'sexy' introductory offer - everyone from Love Film to Fitness First starts uses free tasters as to lure in new customers. As to 'membership', the most important question is how easy is it to (in this case) skip, cancel or return cases? Again, while Laithwaites may be guilty of reducing its font size when it comes to the Ts & Cs, this is (right or wrong) standard commercial practice; there is nothing in the article to suggest that Laithwaites locks people into financial liability for wine they don't want. Its almost certainly easier to cancel a Laithwaites membership than a contract with a mobile phone or broadband supplier, for example.

But here's where the water gets a little muddy: Laithwaites and Direct Wines are behind, among others, Virgin Wines, The Sunday Times Wine Club, the Richard & Judy Wine Club, Bordeaux Direct, NatWest Wine Club, Barclaycard Wine Service, British Airways Executive Wine Club and Warehouse Wines. So what's the problem? As anyone with a simple grasp of neo-classical economics will tell you: market share means economies of scale which means savings for the consumer, right? Not necessarily, this model may work for toothpaste, washing powder and other factory produced goods, but when you apply it to wine it means just that: mass produced, factory-made, 'bulk wine'. Think about it, how else can you fill 800,000 cases (that's 10 million bottles by the way) when you're selling most of it at £4-£5 per bottle?

Sour grapes on our part we hear you say. Not a bit of it: we'll be back shortly with the relaunch of our own wine clubs (like Laithwaites we'll be tying these in with corporate partners) and will take the 'pepsi challenge' with any of the cases sent out under the brands named above, or your money back. Watch this space.

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Tuesday, March 24, 2009

Women's Commonwealth Expedition fuelled by Wineaux

The wine business takes you to some unusual places. And it so was that we found ourselves in the presence of royalty down at the Commonwealth Club last week for the launch of the Commonwealth Women’s Antarctic Expedition. We're sponsoring their fund-raisers and saw them off nicely with with a Penet Chardonnet Champagne. 

The CWAE will see women from the Commonwealth countries of Cyprus, Ghana, India, Singapore, Brunei, New Zealand, Jamaica and the United Kingdom brave blizzards, crevasses and temperatures below -30C as they ski over 800 kilometres across Antarctica to the Geographic South Pole. Marking the 60th aniversary of the Commonwealth, the expedition aims to demonstrate the potential of greater intercultural understanding and exchange, while at the same time highlighting the achievements of women across the world. The expedition team of 8 women from the Commonwealth countries of Brunei, Cyprus, Ghana, India, Jamaica, Singapore, New Zealand and the United Kingdom were selected from over 800 applicants. The women from Brunei, Cyprus, Ghana and Jamaica will be the first person from their nation to ski to the South Pole. Those from India, Singapore and New Zealand will be the first women from their country to do so. 

We salute their efforts and wish them every success (donate here).

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Thursday, March 5, 2009

Wineaux Jockeys' Handicap Chase

Check us out at Chepstow Racecourse. Not only are we supplying the wine for the bars and restaurants around the course, we're also sponsoring races throughout the year, the first of which is this weekend. Watch this space for Chepstow race day ticket giveaways, events and reports.














Its a fine looking horse, but my money's on the dog.

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Thursday, February 5, 2009

Merlot in the snow

You've got a wine business. You get a dog. He's got a better nose than Robert parker. You call him "Merlot" because your girlfriend won't let you call him Randall. We think he's the cutest thing on four legs, but then we're all full of doggy pride so we would, wouldn't we?


























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