Sunday, December 7, 2008

The End of Free Pours in Michigan?

Michigan Grapevine reports that free pours may be on the way out at wineries on the Old Mission Peninsula. There is currently a local ordinance that prevents wineries on the trail from charging for tasting. There were also proposals submitted to allow wineries to hold events such as receptions, to broaden the sale of food at the wineries, as well as allow the sale of wine by the glass.

I noted a few things interesting about the article:

-A claim that if sampling fees were permitted, only some of the wineries would institute them.
-The owner of Black Star Farms (which also makes their own cheese and some excellent fruit brandies) says that free tastings cost the winery between $50,000 and $100,000 annually.
-Some winemakers claim there is an issue with freeloaders sampling.
-No matter how crappy Hoosier wine laws are, at least we're not Michigan. I read of all the oppressive legistlation and proposed legislation and wonder how this industry has managed to thrive.

As for Indiana, a few wineries do currently charge sampling fees. I think more are going to follow suit as they become more established. The fact is, free samples of wine drive foot traffic to a new winery, and there's really no other way in Indiana to build your business. However, I wouldn't be suprised if sampling fees became standard in as little as a year or two. What I suspect will happen is a wine trail as a whole will institute sampling fees.

As for freeloader sampling, I haven't noticed much of it in Indiana. There will be freeloaders everywhere, but for every person who walks out without a bottle, there's a person who walks out with six. Wine poured for free is money walking out the door only if the winemaker failed to build the sampling costs into the margins.

That being said, I am not opposed to sampling fees per se. The concern I have is they keep interested patrons from sampling the full range of a winery's output. If there are twenty wines on the list and you paid to sample five, you will stick to what you know and expect to enjoy. This discourages samplers from broadening their horizons and could reduce sales. I particulary fear for wines at the top of the list (the dry reds) since Hoosiers seem to gravitate towards the sweeter wines.

Of course, there is a sensible middle ground-institute a modest sampling fee but make the price refundable upon the purchase of a bottle or two. Your free rider issue disappears and you encourage sales. Let's hope that winemakers looking to institute sampling fees will consider this. Let's also hope this is done in such a way that doesn't destroy the unique atmosphere of Hoosier wineries.

2 comments:

Joel Goldberg said...

Don't feel any pain for Black Star Farms -- they're a highly-successful operation that bills itself as "an agricultural destination", and operates multiple tasting rooms around state wine regions. If their free tastings cost $50,000 to $100,000 annually, it's because they find them a highly cost-effective way to market their products.

Joel @ MichWine.com

Charles said...

True Joel. I seem to recall the time I visited they also had a bed and breakfast. I would have pointed that out-but there is just no comparision in Indiana. We have some who have have B&B on site, and some that have orchards and such, but nothing compares to the operation that is Black Star.