Wine Pricing

Earlier this year, I was browsing through some recent reviews online (at the content-rich and interesting site Wine Review Online) and came across a writer's comment that said "all of the Tablas Creek wines are conspicuously expensive, and if there is an explanation for this that would justify the pricing, I am unaware of it."  I was surprised to read this (about a $22 bottle of wine, no less) and started a conversation with him.

His comment brings up an interesting issue on pricing, and how to measure value.  There's an unspoken hierarchy of pricing for different grapes which goes back to France.   Bordeaux commands the highest prices, so wines that use Cabernet from elsewhere have a higher ceiling.   Burgundy is next, and similarly, Chardonnays and Pinot Noirs have a relatively high ceiling.   This has nothing (or at least, only very little) to do with cost of production of these grapes.   Rhone wines (the originals, from the Rhone Valley) are still tremendous values, and although the best Chateauneuf du Papes have risen considerably in price over the past decade, it is easy to look at a good Cotes du Rhone that is available for $12 retail and use that as a main point of comparison for what a wine of this general complexion should cost. 

Of course, we feel that you can put even our Cotes de Tablas wines ($22 suggested retail) in a blind tasting with the best wines from Chateauneuf du Pape and they will hold their own admirably.  The reviews that we've received tend to support this. But, there will always be a less expensive option out there that are good (and that's a great thing).  But, does this fact mean that no Grenache-based (or Mourvedre-based) wine can be worth $20?  Or $30?  Or only if it bears the Chateauneuf du Pape appellation? 

If you change your perspective and compare our wines to others from California, I think that the comparison reflects well on their value; when we were pouring at the Wine Spectator's California Wine Experience this past fall, there were 170 wineries there pouring red wines.  The 2004 Esprit de Beaucastel (at $45) was the third least-expensive wine at the tasting, and it's the most expensive of our wines.  So, for wines that clear the bar, however arbitrary, that the Wine Spectator sets for its "best of California" show the Tablas Creek shows off as a value.  At around $20, the Cotes de Tablas wines are, I think, even more unusual for California. 

And, of course, there is good reason for the pricing: even the least expensive Tablas Creek wines are done by hand, entirely estate grown on our certified organic vineyard, with low yields, from vines that we brought in ourselves from France and propagated in our own grapevine nursery, etc., all of which do cost more to do.

Yet writers (and consumers) taste wines from all over the world, and have to make judgments both relative (which Cabernet, or which second-growth Bordeaux, provides the best value for money) and absolute (what is the best $20 wine I can buy that will fit with what I'm eating).  Everyone has different standards, and a wine which is reasonable to one person may be exorbitant to another.

I'm interested to know more about how you, as readers, measure value.  Do you compare a wine to others similar in varietal?  From the same region?  That may receive the same review or score from a journalist?

Comments

[Dr. Debs]

Wow. How very strange that someone thinks your wines are conspicuously expensive! As you know, I'm the queen of value wine and I think your wines--even the higher end ones--represent good, very good, and even excellent value.

I assess by varietal, so maybe that's the crucial difference. I don't think California wine, or French wine, or Napa wine deserves to be more expensive/less expensive than its rivals. And I think the more picky the grape and the more eco-friendly the winery the more they get to charge before I squawk. As a winery that specializes in Rhone varietals I compare the prices you charge with what I would have to pay for syrahs, roussanne, etc of comparable quality anywhere else in the world.

Tablas Creek is among the best value/best quality producers in my opinion. And you care about the land. Two thumbs up.

[Mike]

As a consumer of your wines, I find the Esprit very fairly priced. I do not see value in the Cotes, as the the "other" Cotes still has tremendous values in the $15 or so range, but with the Esprit, you could have easily applied a bit of California wine-making ego, reduced quantity, made it available by exclusive waiting list only while doubling the price. I appreciate that you aim for reasonableness and availability instead.

I especially appreciate it since I live in a barbaric state (Tennessee) that sees the strange union of the church and liquor lobby keep shipment of alcohol a worse felony than a second DUI, making mailing lists a bit of a challenge.

Long winded way of saying that it is quite silly to suggest that the Esprit is overpriced!

[Jason Haas]

Thanks, Deb and Mike. I appreciate the vote of confidence. I was also surprised by the comment, since I usually hear when I go out to present the wines to the trade that people think that they're all pretty reasonable.

And Mike, I think you point out something important in the "California winemaking ego" comment. The way you market your wines is a choice... and whether you choose to make wine for a few collectors or for a more general audience is an important decision. I've always admired producers like Ridge, Calera and Qupe, who have been widely recognized as top producers for decades, but who have chosen to resist both the temptation to make exclusive wines and the temptation to grow to the point that you lose the typicity of the place you're farming.

Thanks again!
-Jason

[MonkuWino]

I got to your blog via Dr. Deb's post on Wine Life Today and naturally I poked around your winery's main website, too. I wound up joining your Vinsider's Club!

I am quite budget-conscious with wine but to me, the prospect of getting high-quality wines made from not-your-everyday grapes sounded so attractive that I am willing to fork over more than what I normally pay for wines. I think your wines are fairly priced, all things considered. I'm tired of seeing all these egotisically-priced cabernets, chardonnays and now pinot noirs, as well as fancy blends with fancy names, going for breathtaking prices even at Costco. It's what is INSIDE the bottle that counts but too many people buy (and too many wineries base their pricing on) the label instead.

As Dr. Deb's said, you could have applied some ego to your pricing but it seems to me that your prices bear a relationship to the quality and actual cost of what's in the bottle, not a "charge what the market will bear because we're a tiny boutique" kind of mentality.

I confess I have never tried any of your wines (I've had the Beaucastel CdP reds and whites - sooo good) but the descriptions and the varietals used made my mouth water so I signed up. Anyway, what I mean to say (sorry to be so long winded) is that just because you aren't selling the "in" grapes doesn't mean you have to position yourself in a bargain category.

[Jason Haas]

Wow, what a nice comment.

I'm not sure we've signed anyone up to our wine club before without them tasting the wines, but if you like the Beaucastel wines, and you liked the descriptions, I think you'll be pretty safe.

Otherwise, thanks for the support. In some ways, it's more difficult marketing yourself if you're a mid-priced winery than if you're super-expensive and can promote yourself as a luxury, or if you're truly a bargain winery (say, wines at $10 and under) and there's no debate about your value. At the middle price range, you have the relatively difficult task of convincing everyone that your wine is worthy of special occasions, but that it's priced where people can enjoy in more often.

Thanks again!
-Jason

[MonkuWino]

I guess I am kind of an oddball when it comes to wine, as I normally consume only one bottle per week, a glass at a time (hence the title of my wine blog). For me, the fun is trying different wines, normally from going by intuition and other people's tasting notes, looking for things that sound interesting and are a bit different from the usual. So after enjoying the main website and your blog, and reading what others had to say about your wines (like on Cellar Tracker), I couldn't resist.

I agree that marketing to the "middle" has its difficulties.. good luck with that! I'm looking forward to the upcoming shipment. Oh, and I got my "welcome" package yesterday - thanks!

[Heather]

My husband and I are dedicated value shoppers when it comes to wine and I have to say that the Tablas Creek wines are an excellent value. It comes down to quality. These are made so well that they are in a category that typically commands a much higher price. We sip $5 Vielle Fermes, but when you want a great wine to go with a great meal, you can't beat a Tablas Creek- especially when you factor in the Vinsider discount.

[Jason Haas]

Thanks, Heather.

The nice thing is that there is room for everyone... the person making good $5 bottles to have open any time in the fridge, those making wines in the $20-$40 range where it's not going to break the bank but is still offers real typicity and character, and the wines that are more expensive and offer a truly memorable experience (that had better be memorable since it's too expensive to have that often!).

And thanks, too, for the nice comment on the VINsider Wine Club. We want to make sure that the people who are our best supporters feel rewarded... hence the wine club model rather than the mailing list model where people are forced to buy more and more wine to get access to the top bottlings and to maintain their priority for the next release.

Thanks again!
-Jason

[George Heritier]

Jason, my take is that you're always going to get the nay-sayers. Like Bob Marley used to sing, "you can't please all the people all the time."

I can relate to your reference to Ridge, Calera and Qupe, all of whom are dear to my heart. Personally, I'd add Sean Thackrey and Edmunds St. John to that very short list.

Just my 2 oz., keep on doing what you're doing, because you do it so well, IMNSHO.

Best,

geo