The Dreaded Economy and Wine – The Good, the Bad and the Ugly
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As we all know, this economy has been, and continues to be, a doozy. In the past two weeks, I’ve had a handful of WU members tell me Wine Unleashed is the only wine club they still belong to. Honestly, this blew me away. A few members belonged to upwards of 10 clubs, while others belonged to just a few. I’m humbled and thankful for their continued support, and am even more inspired in my mission of finding unique wines.
This feedback led me to think about the impact this recession is having upon us as consumers. In the wine world there are quite a few things that have changed (some good and some bad and some ugly):
The Good- For 2008 Bordeaux futures, prices are down as much as 40%. After the escalated prices of the 2005 vintage this is a welcome change.
- The dollar has increased in value against the Euro.
- Previously highly allocated California wines are loosening up on their availability.
- Restaurants have given their wine lists a reality check. Yes, there are still high-end wines on the list, but there’s an increase in the availability of wines priced from $30-$39.
- People are embracing the excellent values in wines from less discovered areas like Languedoc, Argentina, Sicily, and others.
- More people are entertaining at home. Do you know what area of book sales had an upturn last year? Cookbooks!
- Wine retailers have been hit with closures.
- Many restaurants have closed.
- I know of a few wineries that were destined for greatness but could not make it—making wine is incredibly capital intensive.
- Distributors are sitting on a ton on inventory, and the stress is building.
- Many people have lost their jobs and I hope they all land on their feet.
I can’t end on a sad note so let’s focus on what the benefit there is to us as consumers from “The Good.” Go with the flow, slow down and smell the roses AND some wine. Support your favorite winery (and retailer, hint, hint). Now is the time to enjoy a family dinner more than once a week. Invite friends over, share food and wine and extend your family. There are still many things to celebrate: Good wine, good food and good friends and family.