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.
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.
Labels: rant, wine industry, Wineaux



