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From Mad Dog to Merlot
Inside the private-label value wine business of Cameron Hughes

Michael Nagrant

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.

(2006-08-22)




Also by Michael Nagrant

Morning Glory
Sunday breakfast is a stolen moment, an opportunity to linger over a good egg and conversation
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Big Max Attacks
Chicago is the land of the obese, the corporate home of McDonald's, purveyor of deep dish pizza, slinger of fat Vienna franks, and yet we still cede our title of supreme imperial culinary hedonism to Quebec by not adopting poutine, a cholesterol bomb of French fries topped with cheese curds and gravy
(2006-08-08)

Modern Comfort
It took ethnic comfort food to make me forsake my own mother, but, Puerto Rican jibaritos (hi-bar-itoes)--deep fried plantain sandwiches--and Vietnamese pho (fuh)--beef tendon soup--have displaced her chicken noodle and grilled bologna and cheese in my personal comfort-food pantheon
(2006-08-01)

Matador
"You take a bunch of raw materials, whether they're celery and carrots, or notes, which by themselves are not all that interesting, and if you're able to figure out a way to put those things together that pleases people and they like it, they think you're cool, and they want you to come back and do it again."
(2006-08-01)

Red Sauce Reminiscence
(2006-07-25)

Still Smoking
(2006-07-11)

King of Cocktails
(2006-06-30)

An Eye for an Eye
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A Matter of Taste
(2006-05-23)

A Sensual Feast
(2006-05-23)

Browne's Ale
(2006-05-16)

Beyond Beer Nuts
(2006-05-16)






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