Slappysquirrel, That's what I was going to say. Bottom shelf wine is always best, preferably by the gallon.
I don't like Merlot much, but I would recommend you to get him some Casillero del Diablo, it's inexpensive and very good for the price. It's from Chile. It's not as popular as the Yellowtail, but in my opinion is much better. I think Pinot Noir, Malbec and Shiraz are better red wine options. Riesling if you're going with white.