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Brands Compelled to Bully

: Wine Business; Written by Fred Swan; Created on Thursday, 04 March 2010 06:35

News came today that a small Novato winery won out in a trademark-infringement case which had been brought against it by the Trek Bicycle Corp. It seems that Trek Winery LLC had shipped three cases of wine to Wisconsin, where Trek the bike company is headquartered.

On the surface, lawsuits like this are maddening. They seem frivolous. How could shipping three cases of wine confuse consumers about the branding of a bicycle company? The judge took that point of view as well, “Plaintiff cannot argue seriously that three isolated sales show that defendants have made such purposeful availment [sic] of the benefits of Wisconsin’s laws that they could reasonably anticipate being hauled into court in this state.”

Beyond the frustration caused by what appears to be a gratuitous lawsuit, we also tend to root for the little guy. We see the larger companies as bullies. The headline in the North Bay Business Journal leads us to take that view as well, "Tiny Novato winery wins trademark case against Trek Bicycle." Tiny. It's David vs. Goliath.

In reality, things are not that clean cut. I am by no means suggesting that the winery was trying to prove a point by shipping into the Trek Bicycle's home territory or that they were looking for a fight. I'm sure that's not the case.

However, we should not automatically assume that Trek Bicycle Corp. was happy about bringing this to court either. Court cases are expensive. They take a lot of time from executive staff. Lawyers who can clock in at $500 an hour are involved.

There is also very little that a large company stands to gain from suing a tiny one. How much could David actually afford to pay in damages to Goliath? Damages are usually based on some percentage of demonstrable business losses caused by the infringement. Willful infringement may cause treble damages to be awarded. But still, in this case, how much could that be? It wouldn't be enough to make up for the time and effort required to bring the case.

So why would a case like this be brought? Why was the winery "bullied" by the bikers? Most likely, it was done because our laws compelled Trek Bicycle Corp. to do so.

Trademark law requires trademark owners to defend their marks. If a mark is not defended against an infringement by one party, no matter how small the company or infringement may be, then the trademark holder sets a precedent that may cause them to lose a case against a later and truly damaging infringement by another party. The reality of trademarks (and patents) is that the expense of holding them doesn't end when they are granted. You also have to pay to defend them whenever a conflict arises.

In this particular case, things more or less worked out for the best. The winery was spared any penalties, but probably won't ship to Wisconsin again. The bike company showed commitment to their mark, though at some cost.

Not all cases work out so well. Often, the smaller companies simply give in and settle out of court or give up their claim to a name. They can't afford the expense of a court battle, no matter how ridiculous the claim against them. But, that's the way the system works.

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Wines You'll Enjoy from the Wines Entre Femme Tasting

: Tasting Event; Written by Fred Swan; Created on Tuesday, 02 March 2010 23:34

Last month, I attended the Wine Entre Femme trade and press tasting in San Francisco. It was the concluding event of this year's Wine Entre Femme Conference . The Wine Entre Femme organization, founded in 2009, is made up of women in the wine industry who share ideas and experiences in the wine business with each other. The majority of it's members are from either Napa or Bordeaux, but other parts of France, Switzerland, South Africa and even Japan and Turkey are represented.

It's good to see this group thriving. It was also nice to hear that, though there is still the occasional issue, most of the women don't see gender as being much of a factor in their business anymore. The industry has come a long way. Cathy Corison recollected that when she went to work "hauling hoses" at Freemark Abbey in 1978, she was just the second woman in Napa Valley to be seriously involved in the winemaking process. Now, many of the most sought after winemakers in the world are women. Women also hold important management roles in all parts of the industry.

Of course, there are some things that haven't changed. Cathy Corison still makes great wine. She was pouring the beautiful Corison Cabernet Sauvignon Napa Valley Kronos Vineyard wines from the 2000 and 2004 vintages. Here are some of the highlights from the tasting. (Note that I didn't get to taste all of the wines and focused on California. I did more talking than tasting.)

Very Highly Recommended
2006 Chappellet Cabernet Sauvignon Pritchard Hill, $135
2000 Corison Cabernet Sauvignon Napa Valley Kronos Vineyard, $NA
2004 Corison Cabernet Sauvignon Napa Valley Kronos Vineyard, $125
2000 Corison Cabernet Sauvignon Napa Valley, $NA
2006 Dalla Valle Vineyards Cabernet Sauvignon Napa Valley, $150
2006 Melka Metisse Proprietary Red Napa Valley, $145
2006 Phifer Pavitt Date Night Cabernet Sauvignon Napa Valley, $75
2006 Spottswoode Cabernet Sauvignon Napa Valley, $130
2001 William Cole Vineyards Cabernet Sauvignon Napa Valley "Cuvee Claire," $NA

Highly Recommended
2007 Behrens Family Sainte Fumée California Red Wine (70% Syrah), $NA
2007 Chappellet Merlot, $35
2007 Chappellet Signature Cabernet Sauvignon, $47
2007 Drinkward Peschon Cabernet Sauvignon Napa Valley, $55
2006 Joseph Phelps Insignia, $200
2006 Lail Vineyards Cabernet Sauvignon J. Daniel Cuvee, $125
2006 La Sirena Cabernet Sauvignon Napa Valley, $150
2007 La Sirena Pirate TreasuRed Napa Valley, $50
2005 La Sirena Syrah Barrett Vineyards Calistoga Napa Valley, $80
2007 Melka CJ Cabernet Sauvignon Napa Valley, $48
2006 William Cole Vineyards Cabernet Sauvignon Napa Valley "Cuvee Claire," $150

Recommended
2007 Titus Estate Cabernet Franc Napa Valley, $35
2006 Titus Estate Cabernet Sauvignon Napa Valley, $40
2007 Titus Estate Zinfandel Napa Valley, $25

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Let the Wine 2.0 Enthusiast Beware

: Trends; Written by Fred Swan; Created on Tuesday, 02 March 2010 04:15

Sharing of information via the internet impacts the life of almost every human being on the planet, even those without computers. It has led to faster development of medicines and technologies. It enables more rapid and effective response to natural disasters. It gives voice to protestors in totalitarian countries. And it empowers consumers to find the very best Pinot Grigio.

CellarTracker has been chief among the wine-focused web sites that give power to the people. With nearly 100,000 users, almost 1.25 million consumer-generated wine reviews and Google-search cred that puts it among the top search results for many wines, it is a go-to site for people wondering whether they should buy this wine or that one. Unfortunately, even in America, not all consumers are created equal. To be blunt, some of them are idiots. I was reminded of this today while perusing CellarTracker's consumer review database to get a pulse on how its users perceived the quality of a handful of small Sonoma County wineries.

There were two reviews in particular that caused my eyebrows to raise and my mood to darken. They were conflicting reviews for exactly the same wine posted just four days apart. Here they are:
1. Strawberry, crushed berries, spice, and some vanilla on the nose. Big body with plenty of spice, fruit *and* structure. Delicious, especially on day 2. 98 points.
2. Crushed berries, spice, vanilla. Big, juicy wine with decent structure. 87 points.

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2008 Napa Cellars Chardonnay Napa Valley & 2005 Robert Mondavi Winery Chardonnay Napa Valley Reserve

: Wine Reviews; Written by Fred Swan; Created on Saturday, 27 February 2010 00:03

A few nights ago, I was planning to watch Bottle Shock which I'd never seen before. But, before popping in the DVD, I wanted to pop the cork on some Napa Valley Chardonnay to set the mood. I found two wines in the cellar that I thought would do the trick.

The first wine was the 2008 Napa Cellars Chardonnay Napa Valley. A recent release, the wine had been sent to me by the winery for review. The second wine I grabbed was the 2005 Robert Mondavi Winery Chardonnay Napa Valley Reserve. I had purchased that wine myself last year.

Napa Cellars is trying to deliver the type and quality of wines for which Napa Valley is famous while staying at accessible prices. The 2008 Napa Cellars Chardonnay Napa Valley sells for $24. That's clearly over today's $10 and $20 sweet spots but is quite a bit less than many Napa Valley wines.

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Starting a Boxed Wine Rebellion

: Trends; Written by Fred Swan; Created on Thursday, 25 February 2010 23:58

Wine in a box isn't a new phenomenon. I remember seeing boxed wines in family-oriented restaurants at least 30 years ago. The boxed wine back then wasn't very good and neither was the quality of the packaging, but it served a need.

These days, the technology for boxed wine is much better. The liners and spigots maintain an air-tight seal even as the box empties. And the wines don't taste of plastic. Companies like TetraPak have also developed smaller wine boxes, similar to some juice cartons, that are small and light enough to be carried in a hiker's backpack. However, for the most part, the quality of the wine one finds in boxes has not improved all that much.

Some box wine companies, such as Black Box, have been edging toward goodness. Yet, I've still not found a boxed wine that I could truly recommend. For now, the only boxes of wine I can get behind are those that hold twelve bottles.

I'm not alone in this view and the topic of a high-end, or at least very good quality, boxed wine was raised at last week's Symposium for Professional Wine Writers. Tom Johnson of Louisville Juice was one of the instigators of the conversation, asking who might produce the first $80 box of wine. Eric Asimov of the New York Times offered his thoughts on boxed wines yesterday in his column.

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