The economic crisis has changed the buying habits of American wine consumers. Consumers are looking for value wine and more wine will by purchased in retailing outlets and not restaurants, states Michelle Locke from the Associated Press.
In her article she refers to statements by Wilfred Wong and Prof Robert Smiley about the changing consumer habits.
Wong, cellar master for the Concord-based chain Beverages & more!, usually tastes 8 000 wines a year in search of products. But this year he’s up to 10 000 because of the pressure to find good wines at lower prices.
“The consumer has definitely changed buying habits,” says Wong. “They are buying wines, which is good for us, but they are being more careful. People don’t need another $50 cabernet. What they need is a really good wine at $10.”
So far, the effect of the economy on the wine industry is “a mixed picture right now,” says Robert Smiley, a management professor and director of wine studies at the University of California, Davis.
For instance, recent research by The Nielsen Company indicates that although restaurants and bars see a decline in business during faltering economies, the affect is milder on store sales, although there’s evidence shoppers look for better prices.
So, a winery could lose restaurant business but make that up in retail sales. Meanwhile, a consumer price trade-down could mean trouble for wines over $15 a bottle and a bonus for lower-priced brands.
With the economy swinging wildly from day-to-day, it’s hard to draw too many conclusions. But Nielsen figures from U.S. food, drug, and major market liquor stores as of late last month showed 8.3 million cases of wine (a total of about $591 million) were sold for the four weeks ending Sept. 20, up nearly 3 percent from the same period a year ago.
Source: The Mercury News
