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![]() From Mad Dog to Merlot Inside the private-label value wine business of Cameron Hughes
If you ever got drunk on "Mad Dog" 20/20, you might have Cameron
Hughes to thank. After graduating with a degree in philosophy and
English, his father, a longtime wine salesman, asked him to try out a
short-term gig with The Wine Group, which represented high-volume
winemakers like Mogen David (the MD of MD 20/20) and Franzia, the
notorious purveyor of box wine.
While slogging it out in the world of high-volume wine retailing,
which often involves cutthroat dealings, slotting fees and relentless
promotion, Hughes established inside relationships that would lead to
his current career buying up high-quality wine from premier winemakers
and selling it at a value price under his private label.
Hughes, with his rugged preppy dress and wire-rim eyeglasses, reminds
you a little of Dr. Drew, the therapist from the now defunct MTV
sex-advice show "Loveline." It's an appropriate comparison, as Hughes,
who's rolling out his wines this week to the Chicago market at the
Lincoln Park, Glenview and Oakbrook Costco stores, is offering a sexy
proposition.
Hughes owns no vineyards, makes no wine, but he has an inside
connection to some of the best wineries that do. The way the model works
is that many top wineries produce wine that either doesn't fit into
their flavor profile as blending components, or for business reasons,
like cash flow or bankruptcy, they need to sell off some part of their
production. That's where Hughes steps in. He buys up the excess lots and
then sells them direct on his Web site or through Costco. Because Hughes
bypasses traditional distribution and marketing fees, he's able to offer
wines that would normally retail at $30-$50 for $10-$15 bucks.
It's the same model that has propelled Trader Joe's wine-section
growth and the "Two Buck Chuck," Charles Shaw wine phenomenon. Hughes
works the high end of the business looking for "silver bullet" wines
that are usually sold off to improve lesser-quality wines. As Hughes
puts it, "You can really put lipstick on a pig and make it work."
Ultimately though it seems that if this excess wine was any good, it
would be selling, or the wineries would market the wines themselves.
Hughes says, "There's too much wine out there. You can only make wine
under brands. Wineries are in the business of production. They don't
know how to sell."
Hughes certainly knows how to sell. When I spoke with him, there was
a Ron Popeil-like "it slices, it dices" enthusiasm punctuating his
every word. It's a zeal that has popped up among general membership on
the Wine Bulletin Board at eRobertparker.com, with some folks dubbing
Hughes wines as, "Best Cal Cab under $25" and "Best 9.99 bottle of
wine I have ever tasted."
I was still skeptical. While I might know the difference between a
Green Zebra and a Yellow Brandywine tomato, when it comes to wine I
admit I fall back on the Kangaroo label as a mark of quality more than I
should. That being said, I trust my palate. Despite what wine snobs
might say, I like Charles Shaw. I think it's a great drinkable everyday
wine and I wondered if it would be worth spending almost three times as
much for another "value" wine.
To remedy the hype with my own palate I tasted Hughes Lot 14, a Napa
2003 Merlot and his Lot 16 Napa Cabernet Sauvignon. I can't tell you if
they're worth three times their value, because I don't drink a lot of
$50 wines, but I do drink a lot of sub-$10 wines, and Hughes wines are a
different game. These are big, well-balanced wines. In terms of fruit
and explosion on the palate, they're a whole lot more like Pamela
Anderson than Paris Hilton.
If you're a Pinot Grigio on the back patio or White Zinfandel swiller
you probably won't be interested. On the other hand if you've got a
taste for Bordeaux without the budget, Hughes wines fit the bill. These
wines definitely benefit from air--I found that the wines became much
fuller after about ten minutes in the glass. Hughes agrees saying,
"These wines need an hour. Young reds, you must decant. People do not
decant enough."
The spicy 2003 Merlot will be available for $11.99 at the Lincoln
Park Costco. It should last through at least the end of the week. On the
other hand, Hughes has blown out hundreds of cases in a weekend in
Northern California stores, so if they're sold out, or you're not a
Costco member, you can buy direct at chwine.com.
Also by Michael Nagrant Morning Glory
Big Max Attacks
Modern Comfort
Matador
Red Sauce Reminiscence
Still Smoking
King of Cocktails
An Eye for an Eye
A Matter of Taste
A Sensual Feast
Browne's Ale
Beyond Beer Nuts
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