Reviews

Wine competitions — who is the winner?
(fine)wines №2 autumn 2007

“Well-run reputable wine competitions can play an important part in the sales success of a wine producer”.

In this reserved manner starts the description of the “competitions, wine” entry in The Oxford Companion to Wine edited by Jancis Robinson.

Competitions are believed to be held for the sake of consumer as they help choose best quality wine among offers in the given class and price segment. For a consumer a small sticker of golden, silver or bronze colour is a sort of assurance that he gets a product with improved characteristics. It is also an additional psychological factor to confirm that he made a right decision.

Last year polemics started in the British wine circles regarding purity of intension and integrity of competition organizers towards consumers. It was caused by the article “Don’t be taken in by prize-winning wines” in The Times newspaper. It argued that wine competitions are nothing more than money spinners. Slow moving stock is used for entering competitions. Medals are given out in thousands and have no value. “Who is benefiting from these awards? It has to be the wine houses who clear their stock, the supermarkets who can drum up sales from promotions, and the companies which organize the competition. I am not convinced the consumer gets anything out of it”, stated one of commentators. Chairmen of two major competitions rose to defend judges and panel results, but the main question regarding who is really interested in running wine competitions was left unanswered.

Returning to the description in The Oxford Companion to Wine we see that benefit for a wine producer is highlighted. In other words, a wine competition is a platform that can ensure additional marketing advantage to a producer or a distributor that will be expressed in real sales and monetary earnings. A coveted sticker on a bottle can increase sales by up to 20 percent and is more effective in combination with other promotions. A leading English supermarket chain Tesco’s achieved an exceptional result. Sales for its own label non-vintage champagne shot by 600 percent after the wine got a medal at a major competition and was supported by additional promotion. This works only when distribution channels are set and a competition has weight on the national level.

Some producers consider winning key competitions in various countries as an opportunity to introduce wines to a new target market and find an importer or a distributor. Events such as The International Wine and Spirit Competition recommend successful entries to potential importers/distributors — this is positioned as another advantage for participants. On the other hand, producers believe that wine’s recognition at a competition of a certain country as well as the fact of participation is an additional argument to prove their serious intentions. Even on the Russian market where competition institutions have not been fully established, there are examples of how foreign companies found importers also thanks to local events.

Another plus for producers is such an additional lever as PR. It is offered by practically all organizers. Usually competition results are published in major industry publications, consumer and related magazines and through internet channels. Wine companies with strong marketing structures use participation in competitions as an important informational lead. This activity attracts both new producers and companies with established reputation and known brands. The former get an opportunity to present their product to a wide audience, and the latter support awareness of their brands among professionals and end consumers.

Participation in competitions is certainly not interesting for everyone. It is well known that producers of ‘blue chip’ wines neglect all sorts of large comparative events. It is especially true for top Bordeaux chateaux and Burgundy domains producing Grand Cru wines, certain historic estates of Italy, Spain and Germany and the so called cult producers of Europe and New World. They prefer to use other promotional programmes in line with their reputation and prestige.

Competitions, especially on the international scale, are needed by producers who have reached certain critical mass and have enough volume and quality to make their brand noticeable on the market. In the marketing jargon, competitions are a valuable tool for brand building, development or support. Even is a producer has will and necessary resources, his plan will be successful only if he chooses a right event.

Wine competitions remain popular for at least a century and a half, starting from the famous international exhibition in Paris in 1855. Formats vary from regional to international, but their attractiveness for involved parties including producers, merchants and consumers depends not only on geographic coverage of entered wines.

One of the critical factors of recognition and thus success is an effective communication channel with various target groups. A competition’s influence increases when more people can read or learn about it. This is why publishing houses or exhibition groups stand behind the most recognized events.

There is a good business case in comparing two leading British competitions — The International Wine and Spirit Competition and The International Wine Challenge. The former has been operating since 1969 and is the oldest in the country. It has long stayed as an event without wide press coverage and without a link to consumers. Thus, in spite of very high standards, there was little awareness of the competition which still affects the number of entries (about 6 000 in 2007). Two years ago The International Wine and Spirit Competition became part of Nexus Media Communications group that also owns Harpers weekly. Now the competition’s results are published in the major industry publication. The programme to increase international awareness has also been developed.

The International Wine Challenge was founded in 1984 by publishers of Wine International magazine. Thanks to a wide informational coverage targeting both producers and end consumers, the competition took over the competing event in the number of entries and general recognition. In 2005 before the competition and the magazine were sold to William Reed Publishing, over 9 000 wines were entered, and Jancis Robinson called it “Oscars in the world of wine”. Today The International Wine Challenge remains to be the largest international event (9 358 wines in 2007). Wine & Spirit magazine (a hybrid of a professional and consumer publication) is its informational channel.

Names of organizers and standards of judging play a vital role. In Britain a serious competitor to the two established events is Decanter World Wine Awards that was first held three years ago. Its organizers are the publishers of Decanter magazine. The international prestige of the publication coupled with energetic promotional activities allowed to increase the number of entries from 4500 in 2004 to 6300 in 2006 and to persuade a number of strong players to participate.

As for judges and judging procedures, organizers of any serious event understand that only high standards ensure validity of a competition and trust for results. All prestigious international events are run with involvement of experienced professionals who are particularly reputed in their area of work. The International Wine Challenge and The International Wine and Spirit Competition, for example, are proud to announce that their lists of judges include over 40 Masters of Wine.

Judges are selected from winemakers, wine merchants, journalists, independent experts and other specialists in the wine industry. Most of them would live and work in the country where the competition is held, but all recognized international events would also have professionals from other countries. Organisers of The International Wine and Spirit Competition claim the judges’ qualifications on their event are outstanding. “We are inundated with applications from people who want to judge for the Competition, and have to turn people away every year. All judges, including our MWs, must go through an induction process and a trial judging day before they are allowed to officially judge on a panel, and performance is constantly reviewed”.

Transparency of the process is also a key issue. The process is described in detail starting from receiving samples and ending in giving awards. Most competitions would have only organoleptic evaluation, but some also do chemical analysis. The International Wine and Spirit Competition sends all medal winners which will further compete for special prizes to an independent laboratory expertise. A wine can receive a top award only if it successfully passed the test.

Evaluation systems and award categories vary from one competition to another. Decanter World Wine Awards uses a 20-point scale and four categories of awards — recommendation, bronze, silver and gold medals. Gold medalists further compete for regional or international trophies. MUNDUSvini, the largest international competition in Germany, works by the International Organisation of Vines and Wine (OIV) standards. It is a 100-point system with awarding only silver, gold or double gold. There are also special prizes such as “The best white wine of the year”, for example.

While competitions ran by the OIV rules limit the number of award winners by maximum 30 percent, there are no such limitation in other events. Statistical figures of various events show good correlation. Total number of award winners in The International Wine Challenge is 63,8% and in Decanter World Wine Awards — 61%. If the entries with basic recommendation are excluded, medal winners constitute between 30 and 40 percent. This roughly equals to the number of awards given at OIV events. Thus, a great number of medals at open competitions judged by a reputed panel reflects a good quality level of entries rather than exposes cunning organizers who aim to attract as many entries as possible.

Competition entries generally reflect the market situation of the country where they are held, but also define the status of an event. The main bulk of entries comes from middle bracket — this is true for the majority of competitions, including those in Russia. In the meantime, an elitist position of Decanter World Wine Awards, for instance, attracts wines in premium price categories up to several hundred euros. In 2006 average prices for gold medalists were 66.81 pounds for Portugal, 50.49 pounds for Champagne, 29.24 pounds for Austria, 25.14 pounds for Burgundy, 18.94 for Italy — much higher than average levels.

No matter which model is chosen, a competition is a type of business activity that should be commercially attractive for its organizers. When organized correctly, a competition will cut even in the first year and turns into a profitable business from the second or the third year. According to an internal source in one of the leading publishing houses, competitions generate the third largest revenue in the list of company’s activities.

As Robert Joseph, founder of The International Wine Challenge in the UK and several Asian markets, notes, a ‘comfort zone’ and real international recognition are achieved when the number of entries crosses the threshold of five thousand. Entering wine in a competition costs 110-190 euros. At a certain point, while the organizational expenses are more or less fixed, each new entry means pure profit.

In a fight to attract new producers or to expand the number of entries from one producer, organizers create additional benefits. They can be nominations for best winemaker, producer, supermarket or retail chain, etc., as well as charity auctions, presentations and gala-dinners. Thus, the company who enter their wines get not only a wine competition, but a more inclusive event that helps achieve other advertising or marketing aims.

Having analysed the advantages of a professionally run wine competition for organizers, producers and merchants, it is time to come back to the consumer once again.

Will an average consumer with interest in wine specially go to a shop to buy a wine that got a medal X on a competition Y? Hardly so. But when browsing shelves with wine and choosing a bottle to buy, he notes a medal sticker and gets influenced by it for the final decision? This scenario is quite common. Will the consumer win? If a competition is authoritative and a price is on par with other offers in the given category, the answer is most likely to be positive.

International Wine Challenge
Country: UK
Year founded: 1984
Judging dates: early April
Results announced: general presentation in September, then publications in Wine & Spirit
Number of entries: 9 358 in 2007
Advantages: the biggest number of entries; wines are group by regional criteria; Oz Clarke and Jancis Robinson and 40 Masters of Wine are on the judging panel; results are also published in a separate book The World’s Best Wines

Decanter World Wine Awards
Country: UK
Year founded: 2004
Judging dates: late April
Results announced: late May for the trade, general presentation in September, then publications in Decanter
Number of entries: 7642 in 2007
Advantages: most dynamic competition by number of entries; judging panels are formed by selecting specialists in certain regions or wine categories; results are published in the authoritative Decanter magazine; charity auction together with Christie’s

International Wine and Spirit Competition
Country: UK
Year founded: 1969
Judging dates: in several stages from March to September
Results announced: May, June and September for different categories, general presentation in November
Number of entries: about 6 000 in 2007
Advantages: the oldest and a highly respected competition in the industry; a president is appointed each year from the most influential wine people (Philippine de Rothschild, Piero Antinori, Robert Mondavi and others); best wines undergo laboratory checks; special awards for producers, merchants, retail chains and wine educators

Concours Mondial de Bruxelles
Country: Belgium
Year founded: 1994
Judging dates: late April — early May
Results announced: early May
Number of entries: 5 735 in 2007
Advantages: one of the best known European competitions; wine experts from 45 countries; partnership with a university of statistics to analyse and optimize validity of results; special category awards for white, red, sparkling and sweet wines

MUNDUSvini
Country: Germany
Year founded: 2001
Judging dates: late August in two stages
Results announced: October through a special MUNDUSvini publication
Number of entries: 4 925 in 2007
Advantages: the largest German competition with an international wine coverage; judges from 45 countries are invited; results are announced in a special supplement with a circulation of 100,000 copies; the event is also covered by regional and national media

Today there are two competitions in Russia whose reputation can be considered as established. They are The International Tasting Competition for Alcoholic Beverages held within Prodexpo fair and Vinnaya Karta Open competition for wines and spirits organized by Vitrina publishing group.

Prodexpo competition will celebrate its tenth anniversary next year. Russian producers or wines and spirits, as well as importers and foreign producers send their entries. On average, there are a thousand entries; about half of them are wines. Forty percent receive gold, silver or bronze medals. There are also ten trophies for various categories.

Vinnaya Karta Open was founded in 2004. Over 300 entries were sent in then. The judging process is split in two stages. The selection board that includes importers, sommeliers and independent experts gives initial evaluation. The international panel with invited leading Russian and international experts gives a final verdict and adjudges awards. Best performing entries are awarded with gold, silver or bronze medal or a special Crystal Glass trophy.