Washington's pricing problem, getting worse?
PAID CONTENT
The Washington State wine industry has a pricing problem, and it has for some time. Sadly though, my sense is that it is getting worse. It is spreading south to Oregon and even east to Idaho, and while there are notable exceptions in all three states, the majority of wineries are raising prices to the point of being unsustainable. The mystery here is, why the geographic spread? Much of the pricing pressure in Washington can be explained by an increased regulatory burden, from large minimum wage increases to mandated leave for employees. It does not explain it all and clearly should not be impacting Idaho vineyards and wineries.
There are wineries all over the Northwest, big name wineries that have been producing great wine for a long time that are not jumping on the price rise “band wagon.” Wineries like Koenig, Huston and Cinder in Idaho, DeLille, Basel, Saviah and others in Washington, and Soter, Domaine Serene, King Estate and more in Oregon, all get it. Their wines are not in the value category by any means, but they are priced fairly for the caliber of wine they turn out. They have wines across price categories that allow buyers of all budget abilities to enjoy their products.
For all of these wineries though there are multiples of them who are just simply getting carried away with what they feel their wines are worth, or have been unable to manage their business effectively to control their costs. This is the segment that can’t be sustained!
In the last week I have tasted examples of wines that can’t possibly stand up to the competition at their current pricing. DeLille has been producing world class wines from their base in Woodinville for decades. They have never received a score under 90 from any wine publication, for any of their wines in their entire history. Quite a statement! Their D2 blend is delicious and worth every penny of their $48 retail price. This past week I tasted a blend from an Idaho winery that jumped some 20 percent in just the last year and now goes for $53 a bottle. Is it the measure of D2? No way. Does the winery have the lineage and reputation of DeLille? Not even close.
Ridge Vineyards and Winery from California is considered by most wine professionals to be the benchmark for American made Zinfandel. Paul Draper, the director of winemaking for Ridge, has been making “Zin” for decades; he has cultivated the best fruit sources in Sonoma County to put in his bottlings and is simply the master. I tasted a “Zin” recently from a Columbia Valley winery and, you guessed it, the wine is priced at the same level as the Ridge vineyard designates, and more than their entry level selections. Troubling? For sure, especially when you consider that Zinfandel is not even one of the varietals best suited for the appellations of Washington State.
Here is the issue that is so frequently ignored by wineries and winemakers when they make these ill advised pricing decisions. Which other wineries are you now bringing into the conversation? If you are pricing your red blend from Idaho at $53, is it good? Sure it is, but is it worth 10 percent, 15 percent or even 20 percent more than all the other wines with big names, bigger scores and huge, well earned reputations that have been developed over decades making world class wines? That is a tough sell, and for consumers it is tough to plunk down those dollars to buy your wine. The wineries that are pursuing these price levels may be able to get that for their wine for a bit, but should they?
The Northwest by just about any standard is still the “new kid on the block” of the worldwide wine industry. Our friends to the south in California, not to mention all of the great producers in Europe and elsewhere, have a big head start on many of the new producers here in the appellations of Oregon, Washington, and Idaho. The ownership of the wineries attempting to establish what can only be described as outlandish prices for their wines should exercise due caution.
The wine industry today is too big, too global and nimble enough to move wines quickly into any market to take advantage of these overly proud prices. A little restraint is in order for the offenders, at some point the conversation for them may turn existential.
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.
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George Balling is co-owner (with his wife Mary Lancaster) of the dinner party, a wine and gift shop in Coeur d’Alene by Costco. George is also published in several other publications around the country. After working in wineries in California and judging many wine competitions, he moved to Coeur d’Alene with Mary more than 10 years ago to open the shop. You can also follow us on Facebook at http://www.facebook.com/#!/dinnerpartyshop.