"Cheap is Chic" in the wine market: True or false?
Posted: Fri Sep 24, 2010 9:57 am
Interesting report from the Santa Rosa Press Democrat, in the heart of California's Sonoma wine country, where they report that recessionary economy is prompting wine buyers to look on the QPR shelves rather than reaching for the high-end stuff. What do you think? Does this equation work for you, or are you drinking better but drinking less? Or does the economy affect your wine budget at all?
Wine: 'Cheap is chic,' at least for now
By Nathan Halverson
The Santa Rosa Press Democrat
Tuesday, Sept. 21, 2010
Americans are drinking as much wine as ever despite the massive economic turmoil. But now they stoop down in the grocery aisle to buy a cheap bottle, rather than reaching for the top-shelf luxury wine that characterized the industry only a few years ago.
"Cheap is chic," said Tony Correia, a veteran vineyard appraiser who spoke at a two-day wine conference in Napa that concluded Tuesday.
Chatter at the 19th Annual Wine Industry Financial Symposium frequently revolved around when, if ever, wine drinkers would return in large numbers to the high-end wines produced on the North Coast.
"I think the next 12 months will be very hard for the $25 and up price points," said Ray Chadwick, executive vice president at Young's Market Company, a wine distributor. "The lower price points will continue to do exceptionally well."
Retail sales are closely tracked within the industry because consumer prices trickle down and impact every part of the business – from grape prices to land valuations.
Facing financial pressures, many North Coast wineries have discounted their retail prices since 2008. The practice has generated necessary cash, but often has resulted in prices that don't cover the higher costs of producing wine in Sonoma and Napa counties.
"It is going to be challenging for the luxury market to get sustainable prices for some time," said Steve Fredricks, president of Turrentine Wine Brokerage, who spoke at the conference Tuesday.
Read the full story in the Santa Rosa Press Democrat:
http://www.pressdemocrat.com/article/20 ... st-for-now
Wine: 'Cheap is chic,' at least for now
By Nathan Halverson
The Santa Rosa Press Democrat
Tuesday, Sept. 21, 2010
Americans are drinking as much wine as ever despite the massive economic turmoil. But now they stoop down in the grocery aisle to buy a cheap bottle, rather than reaching for the top-shelf luxury wine that characterized the industry only a few years ago.
"Cheap is chic," said Tony Correia, a veteran vineyard appraiser who spoke at a two-day wine conference in Napa that concluded Tuesday.
Chatter at the 19th Annual Wine Industry Financial Symposium frequently revolved around when, if ever, wine drinkers would return in large numbers to the high-end wines produced on the North Coast.
"I think the next 12 months will be very hard for the $25 and up price points," said Ray Chadwick, executive vice president at Young's Market Company, a wine distributor. "The lower price points will continue to do exceptionally well."
Retail sales are closely tracked within the industry because consumer prices trickle down and impact every part of the business – from grape prices to land valuations.
Facing financial pressures, many North Coast wineries have discounted their retail prices since 2008. The practice has generated necessary cash, but often has resulted in prices that don't cover the higher costs of producing wine in Sonoma and Napa counties.
"It is going to be challenging for the luxury market to get sustainable prices for some time," said Steve Fredricks, president of Turrentine Wine Brokerage, who spoke at the conference Tuesday.
Read the full story in the Santa Rosa Press Democrat:
http://www.pressdemocrat.com/article/20 ... st-for-now