November 8 2008
A couple of weeks back I was contacted by a reporter from the Wall Street Journal who found my blog and was doing a piece on consumers who were paring back in our current economic conditions.
The reporter found a post I wrote about $5 wines.
Now, mind you, normally, I do not get very excited about these sorts of things, but this was the Wall Street Journal.
The New York Times and the Wall Street Journal are the beacons of print journalism. I think most everybody wants to be quoted in the WSJ. Then, when interviewing with the reporter, I made a critical goof – as I am wont to do, I started giving my wife credit in the interview about how we recycle, we conserve energy, we watch our pennies, she does the Martha Stewart canning thing, etc., etc.
Like any good husband, I acknowledge that my life would come to a quick, grinding halt were it not for my wife. Before I knew it, the reporter wanted to talk to my wife and not me.
Alas, my wife was quoted in an article in the Wall Street Journal. My kernels of wisdom did not make it past the editor’s red pen. You can see the Wall Street Journal article here.
This humorous episode does bring up an interesting point, as does a post that Deb from Good Wine Under $20 wrote at Serious Eats – people are retreating from the luxury consumer economy – in droves.
The Wall Street Journal article ties together the economic climate with the green movement, while underscoring frugality.
The same thing is true for the U.S. wine industry that has spent the last couple of years going upmarket in pricing while emphasizing organic and natural winemaking. The only problem is there is not the underlying frugality in regards to pricing.
About a month ago, I was at a Notre Dame Football game. My friends and I gather at least once per season in my hometown, South Bend, to tailgate (i.e. drink too much beer on a Saturday afternoon) and watch the Fighting Irish (hopefully win).
One of my good friends, in town from Denver, CO happened to be dressed somewhat trendily, or at least a cut above the post-preppy suburban Midwestern garb the rest of us were decked out in. A female student from Notre Dame, who was tailgating next to us, asked my friend, “Excuse me, I don’t mean to be rude, but we were wondering if you were from New York, or California?”
“I’m from Denver,” my friend said.
Flummoxed, the one girl said, “Oh. Okay. We couldn’t tell if the clothes you are wearing are Kohl’s or couture.”
The implication was they could not tell if his t-shirt was $125 from a boutique or $11 from Kohl’s department store. Ditto for his coat and jeans.
The answer is, as a family man with three kids, the clothes were from Kohl’s, Target or another value department store.
The point here, translated to wine, is clear. In this economy, buying a $125 bottle of wine seems completely absurd. Buying an $11 bottle of wine seems like a simple, affordable luxury.
I fear for the financial ramifications that our current economy may have for the CA wine industry. Oregon and Washington, less engendered to national distribution, should be fine. However, California wines – those in the $25 + category might be in for some real and tangible pain.
Upmarket pricing and the green movement? From a wine consumer perspective, is it Kohl’s or Couture? Kohl’s for sure. I hope that wineries will figure out a sales strategy that allows me to feel green while I am forsaking conspicuous consumption because the shelves at the wine shop do not seem to indicate that to me these days.
Posted in, Wine: A Business Doing Pleasure. Permalink | Comments (5) |
I’m not too familiar with Kohl’s, but if it is like a Loehmann’s (discount high-end retail), it could be both Kohl’s and Couture (fashion just being liquidated).
With the same concept, I’m now finding huge discounts or closeouts on wine.
Though I’ve often preached value wines like German Riesling and Cru Beaujolais, I’m now finding more high-end Burgundy, Priorat, and top tier Italians at 50% off or more. And, I’m allowed to taste everything before buying.
It seems Bourgogne $ can now buy 1er Cru, 1er Cru $ can now even buy some Grand Cru.
I think the impact on the CA or domestic semi-cult world will be huge. 90% of my CA purchases normally came from mailing lists- This fall, I’ve passed on most but my tip tops. The ones I’ve dropped are now emailing me 1-2x per week (where before, I’d get the boot, and they’d just fill the slot with someone on the wait list).
Mailing list or not, $45 per bottle was formerly the spot where I’d stop and question a purchase, now it is about $20.
Keith - thanks for commenting! Whenever you find that bargain at under $10 or $15, please let me know!!!
Hardy - thanks for commenting. We didn’t get a chance to formally meet at Josh and Lenn’s New York wine tasting, but I wish we chatted.
I love CA Pinots, but these price points are killing me and I have experienced the same thing as you—I decline to respond to an allocation offering and I get the “last chance” email ...
All the best,
Ah, the worm turns. I have noticed a spike in readers since the markets went south. Of course, once the markets go north I’ll still be drinking what I’m always drinking, which is mostly under $20 bottles of wine. But I like the idea that under $20 is the new black! Thanks for the shout out.
It’s weird. The under $20 is always where I go, even as prices rise. The problem, especially for us here in Indiana, with such a limited competition between distributors and a lack of distributors who represent interesting, small-production wines at good prices. Our legal system and the politics of the people who control wine distribution is horrific.
We should go shopping sometime.
Right across the border in Illinois (and Michigan, for that matter) you can find great couture wines at Kohl’s prices (IL also has Loehmann’s).
My sister lives in Chicago (I just moved back from there), and I’ll show you some killer wines for killer prices if you ever want to take a day trip up there. And meet some great people, too.
Alas, the drive is bad on our carbon footprint. Megabus is cheap, though.
For me, it’s about keeping an eye out for great deals. I find that I spend a few more bucks, but I spend them less often. I try to get a fantastic wine that doesn’t leave me wanting another, better bottle.
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There will always be somebody willing to pay and arm-and-a-leg for the high end cult wines, but you’re absolutely right, people are “trading down” in their wine purchases. Everyone wants the “steal” - the great wine that is at a really great price. Under $30, okay. Under $20, cool! Under $10, hell yeah! Here in the retail trenches, we see it more and more.