Should a new market try to "play the hits" or chart its own course? One case in Texas

After the in-class presentations about emerging wine regions, I've been thinking about the first strategic decision a wine maker in these regions should make: Should they cater to existing tastes (but encounter a lot of competition) or should they play to their strengths and try to do something new (but encounter the need to educate consumers)?

I came across this article from Austin 360 about a partnership between an Austin restaurant (Emmer and Rye) and a local Texas Hill Country winery (William Chris Vineyards). In summary:

  • William Chris is known for full-bodied red grapes like mourvèdre and tannat
  • Emmer and Rye selected a new grape, Touriga nacional, which is uncommon for William Chris. D Thompson, the director of education, says, "Even though it's not part of our mainstream production, it's something that I think has a really bright future here in Texas." Alicia Schmidt, the general manager of Emmer and Rye, chose the wine because, "it has a very herbaceous and spicy quality that I think makes it stand out against other bold red varietals. It combines some of what I like from the Iberian grape's mencia's aromatics - herbaceous, spicy, incense-y, herbal craziness - but sort of with the body and weight and texture of a bolder red wine."
  • Emmer and Rye wants to play a role in educating local consumers about Texas wine. The general manager Alicia Schmidt imagines diners saying, "I've never had wine from that region. Can you pour me a little splash?" and because of this partnership, the restaurant will have wine by the glass. Schmidt says "I just think that really opens the door for Texas wine in general"

I think the Touriga nacional sounds delicious, but I personally don't think I would take a risk on a new wine region and varietal and winemaker that I've never heard of simultaneously - it just seems tough to pull the trigger on. I wonder if Emmer and Rye would have more success partnering with either a better known winery or a better known varietal to lower the consumer's perceived riskiness of trying something new. If they're committed to doing something different, I wonder how they have thought about their role in educating the diners in their restaurant.

In a situation like this, is it better to play the hits or play to your strengths? I know the answer is "it depends," but I wanted to share these thoughts given the implications to other industries and business situations.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.