Dan's Papers - August 3, 2007 - Enomatic: Gimmick Or Tool?

The Newest Gadget In Wine Retail May Sport A Retro Name, But The Technology Is Pure 21st Century

The wine industry is ancient. Wine has been bought, sold and traded for several thousand years and many economies are heavily dependent on this industry. Wine sales contribute more than $24 billion dollars to the American economy, and wine buyers make assumptions about price, quality and knowledge every time they step into a wine shop.

Price is almost always a factor when considering which bottle to buy. But if price were the only factor, then shopping at the cheapest place is the only choice...... or is it? And what are those cheapest places? Many stores put big advertisements in the New York Times, Newsday and yes, in Dan's Papers, with a listing of some of their prices, but there are many factors in the pricing, depending on each product and how those products are bought by each retailer.

The most recognizable wines are always the most discounted - such as Veuve-Clicquot Brut (with the yellow label) and Santa Margherita Pinot Grigio - because they serve as a barometer for how reasonable a store's prices are. A store's volume, rent, payroll, marketing, inventory and unique equipment can affect the pricing a store uses. Some stores are much stronger at purchasing wines from certain categories; the price of Gallo Hearty Burgundy might be better at a store in the middle of Long Island and the price of top-flight Bordeaux will be found at the store that does the most business in that arena (one of my clients, Sherry-Lehmann in Manhattan, comes to mind here).

But all stores need to have many different approaches to attract enough volume. Some stores compete on price alone and you are left to find your selections without any help but a few signs, while others hire knowledgeable staff to help guide you on your vinous adventure. Here in New York the law does not allow supermarkets or chains to sell wine, so buying right for a stand-alone store can be a financial and storage backbreaker. Many of the 'obvious' wines (and booze) mentioned above offer incredible deals on massive buys, but if a store takes the deepest deal on all the Absolut(s), Veuve(s), Kendall-Jackson(s), Santa Margherita(s) etc., where are they going to store the thousands of cases and find the hundreds of thousands of dollars to tie up on a handful of price-sensitive products?

Then there are stores that offer frequent buyer deals or case prices. Case prices vary at each store, from solid case discounts to mixed case discounts of between 10-25 percent, and naturally we would assume that the store offering 25 percent mixed case discount is the best deal. Not always. Sometimes 25 percent is more than 10 percent, depending on the starting price.

Naturally I am a fan of stores that are heavy into having knowledgeable staff - it keeps me in business - but there are other means of getting attention for a store's products, and one of the newest (and quite expensive) is an Italian system called an Enomatic. The Enomatic is a vending machine for wine, and the first place to have one in New York was Union Square Wines in Manhattan. The second place is right here in Bridgehampton: McNamara Wines.

McNamara owner Chris Boudouris has installed two Enomatic units that he hopes will be functional this weekend (if all the complicated software issues are straightened out). The unit for the white wines (refrigerated) holds eight wines, and the round unit for reds holds sixteen wines. Customers sign-up and receive a special credit card that allows them to taste a limited number of wines each day, with the pour being limited to about 1.5 ounces each. The units are attached to a computer that stores the customers' details, including wines tasted and purchased.

Chris plans on featuring both value wines and more expensive bottles that are not frequently available to taste. He mentioned Gaja (of Barbaresco fame) wines as a possibility and given Chris' heritage, it might not be a stretch to see a Greek wine, such as Gai'a Estate red, offered.

Tasting is always a great way to determine what wine to purchase, but that alone is not a substitute for wine knowledge, and Chris plans to include a computerized bar-code scanner that will show details of all the wines. I am not sure how far down the road that is, but in the mean time the Enomatic is a great addition to the wine scene.