Supermarkets and Virtual Wines

Who Makes my Wine? The Mystery of Cow Bombie

The guys at Grapes and Lager were kind enough to send us an entertaining little video – The Mystery of Cow Bombie – which left us in no doubt that there was no such winery in Margaret River.

cow bombie

Cow Bombie, the name of a famous off-shore surf break near Cowaramup, is just one of many labels Woolworths and Coles dream up for their BOBs – Buyers Own Brands. HERE is the full list, courtesy of Sarah Collingwoodof Four Winds vineyard at Murrumbateman near Canberra.

It’s a question that we’d like to know the answer to, always. Fine wine is not some anonymous products churned out in a nameless refinery by faceless people, or at least it shouldn’t be. As it happens, Cow Bombie is made by a winery in Margaret River that wants to remain nameless. What’s behind that? The wine surplus we in Australia and the rest of world suffer from (or benefit from if you’re a consumer).

Who makes My Wine?

Subscriber Brian explained how this happens: ‘You are a medium sized winery sitting on 100,000 litres of excess, unloved, bulk Merlot. It cost you $200,000 to make it (adjust by region). “Someone” offers you $100,000 for the lot. Half its book “value”. You can say no, then sit and watch your precious Merlot mellow for the next 5 years. Or you can spend another $100,000 bottling, packaging and marketing it. Or you can bank a cheque for $100,000 that afternoon.

That “someone” used to be large, avaricious wineries and your wine disappeared into a corporate branded blend. Or it was sold to intermediary wine brokers, or exporters. Now it’s large retailers. What’s the difference? The large retailer may even buy some of your branded product as well, now that you know them, or a mutually-agreed proprietary label. They won’t do it for love, but no one does.

The consumer gets your wine one way or the other. I’m not saying it’s moral, sustainable, desirable, romantic or thinning. I am saying it’s real.’

Second thoughts

Sean Bell at Grapes and Lager has confessed to a change of heart in this piece by ABC Rural, saying the supermarkets’ private label offerings aren’t necessarily bad news for small winemakers. ‘Talking about this with many people in industry, he told the ABC, ‘it’s many smaller producers trying to get the juice they haven’t been able to put in their own labels…into the market.’

‘I should have investigated further,’ Sean said. ’The particular brand we were speaking about was actually produced by a small producer and that producer contacted me and said, ‘Sean I think you’re being a little bit unfair and this is the reason why.’

We never find out the reason, but our friend Brian has done a good job on that front above, unlike ex-Treasure Wine Estates CEO Ian Dearie who told BRW: ‘Private label wine exists only because wine companies sell their wine in bulk to retailers and let the retailers put their labels on it. You’ve got to look at who is causing the problem. If you’re a wine company and you’ve decided to make excess wine and sell to the retailers, you can’t then complain.’ More Here.

Maybe that bizarre statement helps explain why Dearie is no longer running TWE. As if wineries made excess wine on purpose. They make wine from their vineyards – how could they foresee the collapse in Australia’s export boom, or the sudden rise of the Aussie dollar or sudden changes in consumer preferences?

Kim

  • Mike Calneggia

    Hi Kim, we are the small family wine business (Calneggia Family Vineyards) that makes the Cow Bombie wines exclusively for the Woolworth’s owned retailers BWS and Dan Murphy and hoteliers ALH. We started making these wines in 2008 when our major grape buyer Evans and Tate went into receivership and the buyer, McWilliams wines weren’t prepared to pay us what we thought was a reasonable price for our fruit. We instead made the decision to stop being grape growers, subject to the decision making of other wineries and instead we became wine producers. Woolworths have been very good to us and provided with contracted security of off take on a lot better terms than we were being offered by other wineries. We are now heading toward our 9th vintage of Cow Bombie production and the market support and the sales growth is proof that the consumers like the wine. Cow Bombie even won the best Shiraz trophy for the 2013 vintage at the Margaret River Wine Show. I really struggle with the claims that private or exclusive labels produced for the supermarkets are somehow inferior to other large volume wines. In a lot of cases they are winning as many awards as the “traditional” brands. Maybe it is that the larger wineries really want to the market to themselves and bashing private and exclusive smaller suppliers is one way of doing that. I know this post I am responding to is quite old, however the issue is being raised again as part of the wine tax debate so I thought I would provide you with another view.

  • Kim

    Thanks so much for writing in, Mike, and apologies for the slow response.

    I’m about to write another post on this thorny subject, but Huon Hooke has beaten me to it.
    I took part in the debate with Brian Miller he refers to, as I communicate with Brian frequently.

    http://blog.huonhooke.com/2015/11/05/debate-rages-about-own-label-wines/#more-5040
    http://blog.huonhooke.com/2015/11/05/wine-producers-call-on-government-to-force-supermarkets-to-disclose-home-brands/
    http://blog.huonhooke.com/2015/11/04/who-makes-my-wine-2/#more-5144

    Thinking about this issue, my main issue is that now is that consumers should know who makes the wines they’re drinking. Unless they’re branded as house wines, which is what happens a lot in the UK with M&S, F&M and Tesco to a lesser extent. In this context, consumers don’t care who makes the wines because they trust their favourite retailers.

    It makes no sense that the big two sell all kinds for products under house brands but come up with elaborate labels for the wines they have made for them. If the winemaker wants to remain anonymous, then the label should say so. The only other issue – and this is isolated to a few stores I suspect – is the staff promoting their BOB wines.

    What is interesting is that you say Woolworths have been good to you and given you better terms than other wineries. That adds a whole new perspective to the argument. I agree with you in regard to quality btw, there are plenty of traditional wineries making rubbish.

    Thanks for sharing your perspective, Mike.
    Do you mind if I quote you in the upcoming blog post?