Another summer of bargains
The "WinEconomy" like the overall economy continues to improve, consumers seem less price driven and sensitive and overall sales continue to rise. Within the "Wineconomy" though some trends are unmistakable. Imports continue to be very affordable in some cases downright cheap! Domestically produced wines increasingly occupy the premium and super-premium categories, these two trends representing an inversion in the market from past years. The aggressive pricing of imports is keeping the lid on prices overall and is exerting great pressure on domestic wineries to price their wines reasonably.
The overall result for consumers is quite positive as we are seeing smaller production wines from around the globe that are delicious and available at prices that were previously limited to huge brands that only showed up in huge retail outlets. Many of these wines are of production size, and or a level of uniqueness that they don't fit the model of the "big box" store and therefore are showing up more as glass pours at area restaurants and in smaller retail outlets. While the sub $10 per bottle market was previously dominated by larger stores these value priced bottles are carried regularly now by local retailers.
This trend is being led by a few geographic areas with Portugal and Spain leading the way. It also includes compelling choices from New Zealand, South America, and re-entering the marketplace with some very well priced offerings is South Africa. Even select bottles from old world producers France and Italy are showing up with amazing quality and even more amazing value. Whether it is production costs, currency translation or just well thought out business choices, the selection for consumers is the perfect storm of uniqueness, quality, accessibility and value.
It has been previously unheard of to have access to wines from Europe starting at $5 and up but we are seeing multiple choices from Portugal right now priced in this range. Both Portuga and Paseo wineries from Portugal offer both red and white blends starting at just over $5. We recently tried a great Spanish wine from the Ribera del Duero region of Spain that was recommended by one of our customers that while slightly more expensive than the Portuguese offerings was of amazing quality for $15. It took some doing to track the wine down but now that we have we are carrying it regularly.
Similarly we have seen a dramatic influx of Rhone and Loire Valley wines from France that are just stunning lighter bodied whites and reds that are perfect for summer with $15 being the high end of the price range. We have even recently picked up a 2010 Red Burgundy that is on the shelf at $20, amazing for the quality of the 2010 vintage. Not to be left out similar choices are showing up from Italian producers. From new world appellations New Zealand, South Africa and South America choices abound from former Kim Crawford winemaker Jules Taylor, the Argentinean wineries Andeluna and Amancaya, and of course the stunning value priced brand of the summer Rib Shack Red from South Africa.
Domestic producers responding to these market forces continue to price some of their selections to compete. So while consumers shopping for great domestic wine seem to be less price sensitive they are not forced to pay more as we see compelling "second label" choices from Washington and California priced in similar ranges. Like their foreign counterparts many of these offerings from U.S. winemakers are of such limited production they don't show up at the larger retailers.
We always believe that for consumers more choices are better than few when it comes to wine, and while economic improvements are always welcome we find too that the price action in the market is also positive allowing all who enjoy good wine to find it at compelling prices and being able to access the advice of their favorite wine professional. For consumers this is "the perfect storm" creating another summer of bargains, for wine buyers at all price points.
If there is a topic you would like to read about or questions on wine you can email George@thedinnerpartyshop.com or make suggestions by contacting the Healthy Community section at the Coeur d'Alene Press.
George Balling is co-owner with his wife Mary Lancaster of the dinner party - a wine and table top decor shop in Coeur d'Alene by Costco. George is also the managing judge of The North Idaho Wine Rodeo and is the wine editor for Coeur d'Alene Magazine (www.cdamagazine.com). You can learn more about the dinner party at www.thedinnerpartyshop.com. You can get all of these articles as well as other great wine tips by friending us on Facebook http://www.facebook.com/#!/dinnerpartyshop.