Wine Culture in America: Still Here?

Forgive me, Father, for I have sinned; it's been eight months since my last post. Eight months! But rather than dwelling on the reasons (excuses?) for my non-blogging, I'm going to launch right into my topic of choice: The latest wine consumption stats from Wine Market Council.

If you scroll down to my post "Wine Culture in America: It's Here!" (January 08), you'll see that the news was all good: per-capita wine consumption in the U.S. had finally reached 3 gallons (pathetic, really, when you compare it to other countries, but a milestone nonetheless), and consumption by volume had reached the highest point in the country's history. Even more promising for high-end wine producers was the fact that the $15-and-over category of wines showed the strongest growth rate.

Fast forward to January 2009 and the picture is a little less rosy. Though wine sales in the U.S. are still growing, that growth has slowed considerably--even more than it did right after 9/11. And the under-$6 wine category has replaced the over-$15 wine category as having the strongest growth rate in the U.S. market. That's no big surprise, given the state of the U.S. economy. Millions of people have lost their jobs, and millions more are adopting a more cautious approach to spending in case the hatchet falls in their direction. People are cutting back on luxuries, and that includes wine. (If the wine industry had done a better job of positioning wine as an everyday, part-of-the-meal drink this might not be the case, but alas...)

So now the U.S. wine industry is faced with the task of offering cheaper wines that people will actually want to drink. Yes, there are wines on retail shelves that cost under $10, but let's face it: They're not very exciting, and many of them are crap. So how do you find the ones that are worth drinking? Since it's unlikely that you'll find many reviews of extreme-value wines in wine magazines like Wine Spectator and the Wine Advocate, budget-minded wine drinkers will have to turn to non-traditional sources. You know... like blogs! (There's a whole wine blog devoted to cheapish wines: Good Wine Under $20.) 

Retailer recommendations can also be really helpful, if there's a local wine merchant you trust. And you just might have to venture outside of your comfort zone to experiment with wines in non-traditional packaging--as in Tetra Pak (like juice boxes) and wine-in-a-box containers (For more on wine-in-a-box, with reviews, see my latest column for Wine Review Online) . Higher-quality wines are now being packaged in these non-glass containers, and because they often cost wineries less to buy and transport, the wines can be priced lower than their traditionally packaged counterparts.  

With a little extra effort, we'll all be able to get through this recession with our wine glasses firmly in hand.

So, anyone out there want to share their recommendations for good $10-and-under wines? OK, I'll start:

Wine Cube, California (United States) Chardonnay 2007 ($17 per 3L box): This Target wine comes in a hip-looking cube-shaped, three liter box.  It has a pretty aroma of vanilla and melon, along with crisp fruit flavor and a nice balance.  A tasty wine for a great price.

Cycles Gladiator, Central Coast (California) Chardonnay 2006 ($10): Made by the folks at Hahn Estates, this is a really tasty Chardonnay for the price. It has aromas of peach and butterscotch, along with vanilla and pear notes. The wine has similar flavors, with pear and vanilla notes, and butterscotch on the finish. It's a crisp and fresh wine, with good balance.

Cycles Gladiator, Central Coast (California) Pinot Grigio 2007 ($10): The aroma of this Hahn-made Pinot Grigio has a pretty touch of peach imparted by 4% Orange Muscat. It also has a crisp citrus-kissed aroma of grapefruit. The wine is simple, clean and fresh, with a subtle peachy flavor.

Windy Ridge, Central Coast (California) Chardonnay 2006 ($8): Though the label doesn't say the wine in 'unoaked,' this Chard was made without the aid of barrels.  On first whiff, the wine smells like SweetTart candies, then reveals hints of melon.  Its flavor is similar, with some crisp green apple and lemon peel notes added to the mix.  This is a tasty everyday Chardonnay for people who would rather taste fruit than oak.

 

Comments

[el jefe]

And to think I almost deleted you from my reader just the other day - whew!

I think what you are saying applies to a large segment of wine buyers, but the $30-$50 crowd isn't going to start buying $8 wines. Instead, they're looking in the $15-$25 range. And they're looking outside of the mainstream varietals for value, not absolute lowest price. At least that's how it looks from here.

[winebroad]

Hi Jeff,
True, those who are used to shopping in the $30-and-up category aren't about to drop down to the under-$10 category. But the folks who were trading up last year do seem to be trading down now. If the ones buying $10 wines in 2007 traded up to $18 wines in 2008, those same folks may be going back to $10 wines. And those who were buying $10 wines may well be looking for $6 wines now. It will be interesting to see what happens in the next 12 months in terms of wine offerings and price-points.

[Wine Club Guy]

Yeah it is an interesting dynamic in the market right now. There isn't much interest in the $30-$100 bottles. The low end stuff will always sell and the $100+ club isn't affected by the economy in the same way as the rest of us. Thanks for the post