We’re well into the new year now, but I want to reflect on what you did, wine-wise, last year (now that the figures are in). A quick recap tells us that overall table wine sales increased by 4.5 percent, with domestic wine up 6.2 percent and imports only 0.6 percent. Standard 750 mL bottles led the way at 6.1 percent and three-liter bottles up 3.3 percent. Red wine collectively was up 4.3 percent and white 6.5 percent. Fortunately, Chardonnay was only up 1.8 percent with Pinot Gris increasing by 7.5 percent. Cabernet Sauvignon was up 6.6 percent while Merlot slid down 4.6 percent.
As for imports, New Zealand led the way, up 24.2 percent, followed by Argentina at 20.2 percent. Australia (-7.1 percent), France (-4.4 percent) and Chile (-2.1 percent) were the downers. Not surprising, Syrah/Shiraz was down -13.3 percent and White Zinfandel has finally gone down by -6 percent.
So what do all of those numbers really mean? Probably that we’re pretty well mired in mediocrity with little gain in consumption. As long as we continue to intimidate the average person with hard-to-remove corks, fancy glasses and the BS that it has to be expensive to be good, we’ll continue to tread water. (Yes, Virginia, we also know the sluggish economy is partially responsible.)
It’s also no surprise Shiraz has fallen—we don’t know how to grow it or make it like the Aussies or the French. Such a pity! The downhill trend of White Zinfandel is easy to understand, since the new sweethearts in that market are the sweeter reds and also Moscato and other floral wines. We might even see Gewürztraminer and Johannisberg Riesling make a comeback if we can learn to make it with some degree of sweetness levels that we, the consumers, can understand. They really can be great when made on the dry side, or even sweet, as long as you know it when you buy it. The previously quoted numbers come from a Nielsen survey and were reported in Wine Business Monthly in December. Summary: We’re still treading water!
Another I told you so: In a recent Seattle Times column by Paul Gregutt, I read what I consider to be one of the best descriptions of the asinine use of big fat bottles that are so prevalent among Pinot Noir producers in particular. Oregon gets the gold medal for the utmost disdain of the environment by using bottles that well could be used for anchors in the Columbia River. I need to quote Gregutt, since I don’t have the command of our language that he shows with this statement. Referring to high-end Oregon Pinot Noir, he says, “If you want your single-vineyard, single-clone, special block, reserve old-vine, handpicked, limited edition winemaker’s-select Pinot Noir to be noticed, well, you had better put it in the right kind of a bottle.”
I totally agree with his observation and, you might have noticed, it’s right here in our backyard. Affordable Pinot Noir is not quite the oxymoron it used to be but when you see a heavy bottle, I guess affordability isn’t a worry. No wonder it costs $75, the bottle probably cost $10 by itself, and that doesn’t include the cost of the hernia operation you need after you try to pick up a case. Next to buying bottled water, this might be one of the bigger travesties to the environment. And this in Oregon, the self-proclaimed eco-dedication king!
I think we can agree that as long as the high-end component of our industry continues to tell us that expensive wine is better, or perhaps inexpensive wines aren’t worth drinking, things won’t change. This may sound more like a political slogan, but remember the other 98 percent of our population we’re trying to educate into enjoying wine. I don’t think many will “just try” a $30 or $40 bottle to see if they might like it. We must have less expensive wines as training aids as well as a means for people to afford to drink regularly.
While on the topic of wine prices, I need to relate a story to you about a night out recently. We went to a local nice restaurant, somewhere in the mid-to-upper range of local eateries—not In-N-Out or Cyrus, but a very good reputation and the food was excellent. Now, about the wine list. It was nearly all Sonoma County, so that was a plus. The selection was very good but short on alternate whites once you got past the dozen Chardonnays. The most expensive Chardonnay was $197, then $99, and down to $47, $33 and $29. The average Chardonnay price was $73, about three times the price of an average entrée. One would think that the world was wrapped around Pinot Noir, since there were 24 on the list, which averaged $88! Some of the highlights, or should I say lowlights (since I was buying), was a range of $179 down to $34, with 16 more than $75. There were only five Zinfandels, and I thought most of their dishes would go very well with Zin—but I think even bacon and eggs go good with Zin, so what do I know? The Zins averaged $65 and the five Syrahs averaged $73 if you exclude a $29 bottle from Santa Ynez. Wine by the glass was limited and ranged between $9 and $15. Where was my gin and tonic when I needed it?
I attempted to determine retail price on many of the pricier wines but, unexpectedly, I found many were on the Internet but without prices. How come? Are they afraid it might frighten people? Or does this go back to the mystique they all try to portray? Maybe it’s like a yacht: If you have to ask how much it costs, you can’t afford it. Or, you’re a vineyard manager and therefore one of the only people, besides winery owners, who can afford it. The prices I could find showed a markup of more than double the listed retail price. For example, one $60 bottle (retail price) was on the list for $149. Should I remind you that retailers and restaurants pay anywhere from 33 to 50 percent of listed retail depending on a direct, broker or wholesale situation? And with all of the current discount programs wineries are giving, it’s probably greater than that. Has anything I’ve written perhaps explained why sales are flat, or still declining, in wine and restaurant industries?
On the positive side, your homework only requires a bottle-a-day without any price stipulations. With any kind of luck, I may have my sh** together by next month and I’ll give you a list of excellent Australian Shiraz wines and prove that once you learn how to grow and make it, it’s wonderful.
