Enologix  
Our Analytics | Making California Winemaking Better
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  The Concept
LAUNCHED in 1994, Enologix takes a predictive approach to decisions. That’s logistics when we know the score before we conduct the winemaking. We can brand wines with quality demanded by wine cultures—critics to social networks. Enologix advantage is predicting quality scores. To work together, we must agree that taste quality scores support bottle prices and higher revenues. We love helping wine companies succeed.

The Problem
THERE IS A WAR between critics and winemakers over consumer opinion, that heats up when an important critic hammers or ignores your wine. Buyers trust the critics as much as you. Academics, marketers and media have taught us to ignore consumer scores which is a violation Harvard Business School’s, Michael Porter’s Value-Chain Strategy.

IN RECENT YEARS, we’ve both read op-ed articles about how we need better to use the social networks to support bottle prices and, if only the wine critics’ scores would go away, marketing maven could sell more wines. Nonetheless, buyers continue to use
ratings.

Enologix Solution

Organizationally the 100-point score is deep inside the wine business. Porter’s Value-Chain Strategy transmits the tactic of predicting the quality before conducting the winemaking.

Enologix sells a one-year service agreement with analytics ( def. multi-dimensional analysis ) to measure a single wine’s quality against a metric ( def. rulers ) for Bordeaux, Burgundy, Italian and Rhone bottled wines. Enologix comes with software for tracking vineyards, blends and bottles. Models see your wine’s future quality before making the blend. Winemakers scale quality beyond 10,000 cases at 90-plus points. Knowing and making wines— technical support —comes with Enologix.

Metrics for Fine Wine

Regional Typicité Metric

Use the Regional Typicité Measurement for indexing and mapping wines with respect to bottled wine sales clusters for Bordeaux, Burgundy, Rhone, North Italian and Zinfandel wines. Typcité transmits to marketing that a wine will be recognized as genuine by buyers with respect to rulers accepted by authorities, critics, educators and writers.

By example, a Pinot Noir with an Typicité of Burgundy predicts that a wine maps to the spot where the Pinot Noirs live. Turn to the Quality Metric, below, to score with an eye to red Burgundy: Grade AAA or
Grand Cru —the best vineyard sites. Grade A or Premier Cru - Single Vineyard wines. Grade B or Village —the blended wine.

Taste Quality Metric
Use our Taste Quality Analytics (several measurements) to index one wine to 50,000 wines assayed over the years here. Quality transmits to marketing; that wines are worth the price.

By example, a Pinot Noir with an Index of 0.65 predicts the wine maps to the 90-point break in the Napa-Carneros. Quality is overlapping with Grade A or
Premier Cru —good single vineyard wines. Nonetheless that transmits to the California sales price of $32 at 2,000 cases. Now turn to the Aging metric to get a sense of how the wine will be viewed by collectors or work in restaurants

Aging & Mouthfeel Metrics
Use our Aging and Mouthfeel Measurement for estimating aging potential over the next decade. The Aging Index transmits to both shelf life and mouth-feel; that a wine will be fresh for a number of years.

By example, our 2007 Pinot Noir with an
Aging Index 0.35 predicts the wine maps to 4-years. That is overlapping with Grade B or Village —good blended wines. This wine needs to be sold by 2011 or the better 2009 vintage will replace it on restaurant lists.

Choice Between Winemaking Guts and Metrics
Here in the Napa Valley,
Bordeaux in America , 20 winemakers have the capacity to make 10,000 case batches of Bordeaux blends. If the proof is their a 3-year trailing average critics’ scores. What is the thinking behind scaling quality: is it intuition or standards? Napa Valley set itself up as the benchmark by which we all judge New World Cabernet Sauvignon based wines. That’s brilliat.

The book "Blink" [Footnote 1] argues that instincts are incredibly powerful and would suggest a more gut driven approach success. Yet what has happened here outside of Napa is the gut driven approach used over the last 40-years has not developed the same capacity for quality as European benchmarks by which consumers and critics judge the wines we make. California has failed to create
White Burgundy in America . Australians and Rhone Rangers have failed to create the equivalent of Northern Rhone In the New World . Chardonnay nd Syrah are commodity wines. Chardonnay, Sauvignon Blanc and Syrah have failed as luxury wine categories.

By the 1990s insiders saw that American winemakers had a problem; that California was the Detroit of Chardonnay, a Chevrolet badged Cadillac. California Chardonnay was failing to live up to the Judgement of Paris, 1976.

"Moneyball" the book by Michael Lewis, a 2011 film, chronicles how Billy Beane at the Oakland As outflanked all other major league baseball General Managers by largely ignoring instinctual decision-making. The central premise of Moneyball is that the collected wisdom of baseball insiders (including players, managers, coaches, scouts, and the front office) over the past century is subjective and often flawed. Statistics such as stolen bases, runs batted in, and batting average, typically used to gauge players, are relics of a 19th century view of the game.

Rigorous statistical analysis had demonstrated that on-base percentage and slugging percentage are better indicators of offensive success. These observations often flew in the face of conventional baseball wisdom and the beliefs of many baseball annoucers, scouts and executives.

By re-evaluating the strategies that produce wins on the field, the 2002 Athletics, with approximately $41 million in salary, were competitive with larger market teams such as the New York Yankees, who spent over $125 million in payroll that same season.

Several themes Lewis explored in the book include: insiders vs. outsiders (established traditionalists vs. upstart proponents of sabermetrics), the democratization of information causing a flattening of hierarchies, and the ruthless drive for efficiency that capitalism demands. The book also touches on Oakland's underlying economic need to stay ahead of the curve.

Moneyball has made such an impact in professional baseball that the term itself has entered the lexicon of baseball. Teams which appear to value the concepts of sabermetrics are often said to be playing "Moneyball". Baseball traditionalists, in particular some scouts and media members, decry the sabermetric revolution and have disparaged Moneyball for emphasizing concepts of sabermetrics over more traditional methods of player evaluation. Nevertheless, the impact of Moneyball upon major league front offices is undeniable.

"Moneyball" dramatized the principles of a reliance on data and ruler to exploit inefficiencies, allocate resources and challenge conventional wisdom — and thus broadened their appeal of metrics in sports that are steeped in the tradition of gut reactions.

Moneyball is a parable for the California wine industry.

Footnotes:

1. Blink: The Power of Thinking Without Thinking is a 2005 book by Malcolm Gladwell. It presents in popular science format research from psychology and behavioral economics on the adaptive unconscious; mental processes that work rapidly and automatically from relatively little information.



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