I'm not the most plugged in person when it comes to the California wine industry. I'm not a buyer, a salesperson, or a marketer, and certainly have no real visibility into what's going on behind the scenes at any wineries, even with a fair number of winemaker friends.
Consequently, I'm a bit of an outsider when it comes to measuring the impact of this recession on the California wine industry. But the picture that I'm starting to piece together from tidbits here and there is somewhat sobering -- not the calamity that is the U.S. Auto Industry, but certainly what looks like a correction, especially at the top.
In short, it seems that this is a really bad time to have your wines cost more than $100.
Just a few recent data points:
Today I attended a high-end Burgundy tasting. The owner of the distributor putting on the tasting told me that prices were down nearly 20% for these wines (many of which retail for more than $200) and that this was the first time that they ever felt like they needed to hold such a public tasting for wine buyers in order to sell what they had.
Over the weekend I attended the Family Winemakers tasting event, which I have done every year for the past five, and in addition to there being a little less excitement in the air, I noticed the presence of several very-high-end Cabernet producers. These are producers that I've never seen at such a large public tasting before, and certainly producers that in the past haven't had any wine to sell to the public anyway, having all of it snapped up off their mailing lists.
Speaking of mailing lists, I took my own advice recently and signed up to be on the waiting lists of a few wineries whose wines are sold almost exclusively to their mailing lists. Two or three months later, presto! I'm on. These are waiting lists on which people have waited for years before getting a chance to buy a couple of bottles of wine.
And finally, the prices may be coming down. One of the aforementioned high-end Cabernet producers is selling at a 25% discount to last year's release price, and I have heard of a number of other such cuts.
I'm somewhat ambivalent about all of this. On the one hand, people are clearly having a hard time and are definitely suffering financially. On the other hand, I think the wine industry, in particular the high-end of the California wine industry, was as due for as much a correction as the overall economy was. 25% price cuts probably aren't really enough, at the end of the day.
Someone in the industry could better say than I where we are in this correction. Given the slow, cyclical nature of wine, where investments made are not borne out for years sometimes, I wouldn't be surprised if things get a lot worse before they get better. Or perhaps given that margins aren't all that big in the industry, all the pain was felt up front, and as long as the economy continues to improve from this point, there's light at the end of the tunnel.
A wine book like no other. Photographs, essays, and wine recommendations. Learn more.
I'll Drink to That: Danilo Nada of Nada Fiorenzo Wine News: What I'm Reading the Week of 8/23 Vinography Images: Night Sorting Small is Beautiful: The Champagnes of Savart I'll Drink to That: Karl duHoffmann of Anchor Brewing Warm Up: Jerez de la Frontera I'll Drink to That: Antonio Flores of González Byass California 2015 - Vintage of Fire Wine News: What I'm Reading the Week of 8/16 A Selection of Georgian Wines
Wine Will Never Smell the Same Again: Luca Turin and the Science of Scent Forlorn Hope: The Remarkable Wines of Matthew Rorick Debating Robert Parker At His Invitation Passopisciaro Winery, Etna, Sicily: Current Releases Should We Care What Winemakers Say? The Sweet Taste of Freedom: Austria's Ruster Ausbruch Wines 2009 Burgundy Vintage According to Domaine de la Romanée-Conti Charles Banks: The New Man Behind Mayacamas Wine from the Caldera: The Incredible Viticulture of Santorini Why Community Tasting Notes Sites Will Fail Chateau Rayas and the 2012 Vintage of Chateauneuf-du-Pape A Life Indomitable: The Wines of Casal Santa Maria, Portugal Bay Area Bordeaux: Tasting Santa Cruz Mountain Cabernets Forgotten Jewels: Reviving Chile's Old Vine Carignane The First-Timer's Guide to Les Trois Glorieuses of Hospices de Beaune