Discovered gems, a £260 Aussie Shiraz and new arrivals from Glaetzer-Dixon

January is quickly galloping towards February which is very much due to being kept super-busy with our warehouse clearance sale. Today (Tuesday 17) was our first reprieve from the madness of picking, packing and dispatching all your fine orders. We’ve smashed all Vinorium ‘January’ records in terms of bottles sold, parcels dispatched and revenue raised – thank you so much…

Currently, just over 4,000 bottles have left our HQ warehouse in the past two-weeks. Across our clearance sale, our average bottle price currently sits at £34.00 which is a remarkable figure and fittingly challenges this month's 'The Wine Merchant' magazines’ (the best source of independent wine life in the UK) front page title “Sub-£15 wines will be key for indies in a tough year.” Unquestionably, consumer budgets will remain under pressure this year, which is at the forefront of all our buying and sales decisions this year and for next. 

One merchant reports they offer 168 wines with a price tag lower than £15 per bottle. Their average sales price stands at £16.01 which is above the national average. I am far from scoffing at these numbers. Moreover, we are far from greedy, quite the opposite in fact, however, our business would financially collapse with such small ‘cash’ margins. A physical shop versus our operation is an interesting contrast. We both endure excessive fuel bills. That said, we use / pay less than we did in 2021 / 2022 as our ‘green’ practices are top-notch. I find cloaking the team in bubble wrap a highly effective way to insulate, albeit rather restricting…

Naively, many believe e-commerce specialists operate with lower overheads, which and specific to our operation, is an incorrect assumption. Of course, we are agents to 40 wine producers which is another unusual anomaly to add to our e-commerce credentials.  Here’s some accurate Vinorium stats taken from our financial year ended December 31, 2022; Rent and rates @ £100,000, LCB fees @ £44,270 (most absorbed by The Vinorium), DPD delivery costs @ £17,755 (which is a significant reduction over the lockdown years), the costs of our biodegradable packaging @ £10,559 and tape to seal your orders @ £1,652. Salaries and stocks are significantly higher...

In the case of a wine merchant - here’s the biggest dilemma many consumers fail to consider and that’s wine merchants’ operating costs (‘survival’) versus an almost insatiable demand for the best wines offered at the cheapest price, delivered quickly and without charge – "I am not paying for delivery" is the most common grievance heard across all UK indies. For many, it’s a buyers’ market, but at whose expense? 

In our case, simply add DPD’s fee, the costs of packaging and tape and you’ve arrived at £30,000. Combine the costs of staff, premises etc etc and this figure has skyrocketed. Last year, we also spent close to £100,000 on a new website. You can see the glaring issue if you are selling wines below £15.00… There’s little cash (if any) to survive and the doors on our operation would be forced to close. Of course, and reverting back to my second paragraph “across our clearance sale, our average bottle price currently sits at £34.00 which is a remarkable figure.” Granted, our normal RRPs are not being met but that is not the point of our sale. Essentially, it is a process of shutting down our HQ warehouses, offering our customers an incentive to help with this process (which you have done in abundance) whilst retaining the integrity of our most cherished wine brands. Cash in the bank too…

Everything has rocketed in price – corks, paper labels, cardboard boxes to glass bottles. The selection of bottle shape and sizes was once the ‘norm’. Now, winemakers are just happy to receive whatever they can get their hands on. Expect to see a surge in quality paper and plastic wine bottles however, I am not sure if their respective longevity in the cellar or being poured at a Michelin starred restaurant will cut mustard. Wine storage, shipping, fuel charges and every imaginable surcharge that you can think of are also added to the melting pot. Yet, I take a relaxed view and play to the cards that are dealt. Fear not, I have no plans to strike as the boss is fabulous to work with! 

Strong wine businesses will survive – some may even flourish. One thing for sure is the rule book on how wine suppliers deal with their trade customers has been torn to shreds. Given the level of hospitality closures and the high levels predicted this

winter, I cannot see many taking a risk with extended payment terms. A short leash or payment-on or prior-to-delivery will become the ‘norm’. Some believe that some suppliers will merge or collapse. We saw FMV fold very quickly during the pandemic and expected a few others to follow. Thankfully, they remain with us today. However, there is no furlough scheme which some believe will be their undoing – let’s hope not… 2023 is a year to be respectful and sensitive. I saw red when certain wine company seniors absorbed as much furlough money as they possibly could and then popped-up on social media basking in an expensive, swanky lunch at the River Café or the like. The hypocritical bullshit is unpalatable, but there you go… In the past 36-months, I have spent less than £750 on entertaining which must be a record for a business of our size and working in this sector. Hopefully, they come for my scintillating company although, only a few make it an annual venture. Perhaps the Tyrrells Furrows are the put-off rather than me? 

Anyhow, The Vinorium is here to stay which is entirely possible with your continued and gracious support.  With a day’s work, we will be in position to condense all remaining wines into one warehouse which is a terrific position to be in. We have also spent Tuesday stock checking, unearthing odds and ends along with one wine, 2019 Standish Lamella which we realised was omitted, and purely by error, from our sale. The ’19 Lamella has never been offered for sale by-the-bottle as a standalone purchase, which makes this (albeit small offering of 31 bottles) rather special. All under bond stock was gobbled-up a long time back. For ease of access, we have prepared a list of all odds and ends below. 

As Peter Drucker wisely wrote “If you want something new, you have to stop doing something old,” which I believe is a smashing point of view – obvious, really, but many fail to change. I created my company in the June of 2005 and often look back at my journey. Early days were spent cycling 250 miles per week, most weekends away climbing, long breaks in the Himalaya and little work, albeit for one Bordeaux En-Primeur campaign which covered my living costs for the year (just). I actually ran the entire 2005 Bordeaux campaign whilst climbing in the Alps. Négociants and customers were informed beforehand as I would spend my days climbing. By late afternoon, I would descend to an altitude whereby I received a signal on my faithful Blackberry device. I would collect all the days offers / releases (respond accordingly) and present some to my faithful customers. Business was brisk whilst sitting above 2,500 metres and the views a darn site prettier than my small home office. There have been huge changes (some good and some just stupid) which I will document and share in the coming weeks. Call it a business timeline covering 17-years, delivered with a sense of humour and no swagger.

As previously mentioned, our clear-out has been cathartic, but to some, may appear brutal. We have parted with producers who do not please you enough to keep. Sad, but that’s the acid test. Others have left The Vinorium as we are not buying enough. Again, we will not re-buy if customers are not being reciprocal. All partings are on good terms – not one bad word uttered. Civil, professional and everyone agrees it’s for the best. Now we have waves of new wines, covering new producers and producers of old. In fact, I believe Tassie winemaker, Nick Glaetzer-Dixon was one of our first. Granted, sales have slowed from year-one which is odd as the quality gets better with each passing year. Additionally, Nick’s prices are spot-on, if not undervalued compared to many of his competitors.

Nick produces a collection of wines that always impress. Avancé is a delicious, daily delight (as his is Chardonnay) whereas his serious wines need more attention. These are important releases and show Tasmania to be a significant global player for Pinot Noir and Syrah.  On any playing field, Nicks’ Mon Père Shiraz is a main contender. On the ‘cool-climate’ field – he’s on the same form as Arsenal. I have re-sampled this week and share my tasting notes below. Sadly, both vintages of La Judith have sold-out and there’s nothing in the pipeline. Both Mon Père and Rêveur are shipped in small volumes. Avancé being more generous. This is all we have – we will not be shipping Nick’s next releases until early 2024. Enjoy as much as the team and I have.

As ever, keep safe, well and thank you for your continued support,

Stu

Tell us about Tasmania, what makes the region so special? What drew you here in the first place?

My Dad worked for Avery’s in Bristol in the early 70s and then worked a harvest for Remoissenet in Burgundy in ’74. He brought his love and knowledge gained in the UK/Beaune of French wines back to Australia - I was lucky enough to taste many of his cellared Old World wines growing up. Burgundy made an impact on me also, though back in the 90s Australian versions of pinot were generally insipid and poorly made. After working vintages in the Languedoc and Pfalz I visited Burgundy for my first time in 2001. I formed a plan to return to the Old World once I’d completed my oenology/viticulture degree, but this all changed when I was working harvest at Leeuwin Estate in ’04 and saw a Tasmanian pinot noir in a blind tasting. It was spectacular and most of us at the bench thought it was a legit Grand Cru.

I emailed the winemaker of this stellar pinot, Andrew Hood and asked for a job. He obliged and I decamped to Tasmania at the end of 2005. After a vintage working in Tassie and tasting a few rare bottles of local pinot, riesling and shiraz I saw the huge potential offered by the island state. Here I could make wines like those of the great regions in Europe, though also be part of a brave new wine frontier. I could craft wines I enjoyed drinking yet be free of excessive legislation and avoid having to rely on my schoolboy French.

Being such an isolated island, what is life in Tasmania like?

Tasmania is a mix of English style countryside and the most amazing, rugged wilderness, with a tiny capital city (Hobart), which is enjoying a bit of a tourism moment thanks to a great arts scene and some exceptional food (and wine). Hobart is only a 50-min flight to Melbourne and less than 2-hours to Sydney. Instead of peak-hour traffic it tends to be peak-minute, although this is changing as people start cottoning on to how great it is here and relocating from the big smoke. Many Tasmanians are descended from His Majesty’s finest convicts who were shunted down here 200-years ago and there’s still a proud uniqueness to them possibly related to this.

What are the advantages and what are the challenges of winemaking in Tasmania?

The cool climate is due to southerly latitude and clean, pure air off the Southern Ocean. The Roaring 40s winds that swell up in spring can be an issue if they’re late in the season when the vines are flowering - I’ve seen yields drop by 50 percent due to poor set.

Do you meet with other Tasmanian producers and winemakers and exchange views/experiences? Do you swap wines?

When I first moved to Tassie there were maybe a dozen qualified winemakers and viticulturists in the state. I definitely missed the regular camaraderie of larger winemaking regions. In the last decade that has changed hugely. We all get along immensely well, sharing equipment, knowledge, packaging equipment, wine and many beers.

Coming from such a Barossa dynasty, were you ever tempted to continue with winemaking there?

Not really - Barossa pinot has never been good.

You travelled extensively and worked across Australia, France and Germany. What did you learn from each travel and which region influenced your winemaking the most?

In Australia I learnt the rigid and analytical structures of winemaking, as per textbook - which are very important to new winemakers, as they have to know the boundaries. In Europe I saw how the winemaker is able to take a step back and let the site or the vintage conditions take more of an influence.

Which sub-regions do you source from for each wine? What are the unique characteristics of each sub-region and how do they influence your wines?

Even though Tassie is classified as only one GI (geographical index) the sub-regions contained are vastly unique - there’s 200km between the Coal River and Tamar valleys.

Pinot noir from the Tamar tends to show bright raspberry, Upper Derwent has cassis while the Coal River Valley is darker plum. My brighter and earlier-drinking pinots are grown in the Derwent and Tamar, while the deeper and more complex wines come out of the Coal River.

Are there any vineyards in Tasmania which you would highlight as particularly superior?

I think it’s still too early in the game to make this call. However there are a couple of vineyards in the Coal River Valley that suit my style of winemaking tremendously well, providing a riper fruit spectrum and superb tannin structure. These are the sites destined for our La Judith Wines.

How do you see Tasmania developing as a region? Do you think that both still and sparkling wine sectors will continue to grow? Will sparkling wine continue to dominate the export market or do you see it changing?

Aussies love sparkling wine and the best grapes for these styles are grown in Tasmania. As our reputation for still pinot noir is strengthened I can see the tables turning slightly. Only 3-4% of Tasmanian wine is exported, so it won’t take too many bottles of awesome pinot to shift the balance.

Do you have a favourite variety to work with? Do you experiment with different varieties and are you planning to expand the range?

That’s kind of like asking who’s your favourite child. While I was working at Frogmore Creek (’06-'12) I worked with a number of varieties. We made some great examples of pinot blanc, petit verdot, blaufrankisch etc. However I’d rather focus on what I can do best - riesling, pinot, shiraz and the occasional chardonnay. One day I’m going to make a single barrel of epic chardonnay for our house wine, as I can’t afford white Burgundy and sometimes I need another white after riesling.

What are your long-term aspirations as a winemaker and for Glaetzer-Dixon as a brand?

Last year we planted our very own vineyard in the Tea Tree region of the Coal River Valley. Really looking forward to one day harvesting this site and potentially releasing some single site/block wines.

Do you have a personal favourite out of your wines (or fondness of a particular vintage)?

The 2011s were a tough sell as the rest of Australia suffered a pretty poor vintage with cool, wet weather. In the Coal River Valley it was cool though very dry. Our 2011 Rêveur Pinot has these amazing savoury and spice notes - it’s definitely one of my favourite pinots. The 2010 Mon Père Shiraz was a hit with the locals.

Your Mon Pere Shiraz offers a fantastic contrast to many Australian powerhouse styles, showcasing great depth without pushing the extraction / ripeness levels. Did you always aspire to create a Shiraz of such elegance?

It’s impossible to make a full-bodied shiraz in Tassie, it’s just too cold. We’ve harvested shiraz in the middle of May, nearly 2-months after the mainland vintage. The clones of shiraz we have down here have lovely aromatics of white pepper and clove. They make themselves really. I have a fond memory of a family dinner in the Barossa with dad opening a bottle of Hermitage - he was like an elder thanking the gods for giving us the shiraz grape, adamant that his sons knew its original home.

We know that it’s a very busy time for you at the moment. How is the harvest going? Anything of particular note from the current vintage?

We had our last pick last Wednesday (April 24). It’s been a hectic though rewarding month, not least because our third child June was born a month before vintage got underway. It is probably one of the most peculiar vintages I’ve experienced (out of a total of 27). Summer was warm and very dry so harvest was looking early, yet if anything the vintage has been a week later than average. With lower than average sugar levels as the same tannin ripeness, we expect alcohol levels to be 0.5-1.0% less.

Finally, would you like to pass any message to our world-wide customers?

Come and visit Tasmania before the rest of the world catches on. Oh hang on ...