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Tag Archives: wine sales

The wine business has much to answer for

winerant
wine edcuation

Whatever you do, don’t help me make an informed decision about what to buy.

It was bad enough that the woman, standing in the Texas winery tasting room, proclaimed that Texas wine wasn’t any good, and that she suspected the Texas wine she was drinking came from California. What was worse was when she told the tasting room employee that she only drank cabernet sauvignon and malbec, and that she wasn’t going to drink this red blend because she wouldn’t like it.

What struck me, as I watched this scene unfold over Labor Day weekend, was that it was so wine – the woman’s dead certainty she was correct, despite knowing nothing about what she was talking about; the refusal to try something different, because it was different; and the sense that the winery was trying to put something over on her.

And this doesn’t include the other foolishness I’ve seen this fall, like the woman at a Kroger Great Wall of Wine with $50 worth of beef in her cart who was agonizing over $10 cabernet sauvigon and who couldn’t have been more confused if she had been trying to read the Iliad in the original Greek. Or the bartender at a chi chi Dallas wine bar who treated me like I was an idiot because I wanted to talk about Texas wine and cheap wine.

Does that happen with any other consumer good? Only wine, and for that we have the wine business to thank. More, after the jump:

Winebits 352: Red wine, wine brands, three-tier

winenews

wine news red wineBring on the red wine: Americans, apparently, drink more red wine than white. This is not news, though for some reason a writer at the Washington Post who doesn’t write about wine (and there seem to be so many of them) thinks it is. Red wine has traditionally outsold white, but a white, chardonnay, remains the best selling wine in the U.S. The people at the Post have one of the best wine writers in the world working for them; I don’t know why they insist on pretending to be experts when there is a real expert at hand. One other thing, as long as I’m being cranky: Given that online retailing accounts for just 5 percent of U.S. wine sales, is a survey from an on-line retailer a better source than Nielsen or the Wine Institute?

Bring on the new brands: One of the great mysteries in the wine business is how many wines actually exist. It’s also a mystery why it’s a mystery, since wine is regulated and this should not be difficult to determine. But it is, and the best guess has been about 15,000, which includes different varietals but not different vintages. Turns out that may be just a fraction of the total, according to Ship Compliant, a company that helps wineries through the maze of regulation. It found that the federal government approved 93,000 labels in 2013. However, since that could include changes to old labels or old wine given a new name, as well as wines that were proposed but never made it to market, there probably aren’t 93,000 wines available for sale. Which, given the size of the Great Wall of Wine, is no doubt a good thing.

Bring on the lawyers: The Wine Curmudgeon notes this item not because he expects anyone to understand it unless they are a liquor law attorney with a large staff, but to remind the world, again, of the pointlessness of the three-tier system unless you are a distributor or attorney. It details a court case in which a distributor is suing a producer even though the producer followed the letter of the law. Or something like that. Regardless of the outcome, it will make no difference to anyone who buys wine. Incidentally, this is a jury trial. I can only shake my head in sympathy for those poor jurors, and hope they have lots of wine at home for afterwards. Update: Hours — literally — after I posted this, the suit was settled. No doubt they were terrified the jury would laugh at them, go home, and open a beer.

Image courtesy of Houston Press food blog, using a Creative Commons license

Why grocery stores love wine

winetrends

grocery store wine salesBecause they sell so much of it — and a lot more than most of us realize. Hence the reason for the Great Wall of Wine.

Wine was the seventh biggest category by dollar amount for supermarkets in the 52 weeks ending June 15, recording $6.9 billion in sales. That’s up 3.7 percent from the same period a year ago, and works out to an average of $9.27 a bottle. The figures come from a study by the IRI marketing consultancy and published in the Supermarket News trade magazine.

How impressive are those numbers?

• They don’t include wine sales in New York or Pennsylvania, two huge markets that don’t allow supermarkets to sell wine. Yet, even without those two states, grocers account for about 20 percent of U.S. wine sales.

• They don’t include wine sales at Target, Walmart, and Costco. Throw those in, and that 20 percent total should increase by more than a few points.

• Wine was bigger than a host of established items, including cereal, coffee, bottled water, cookies, and soup. Some of that was because wine is more expensive; we bought three times more cans of soup than bottles of wine. Even so, it’s an impressive total, given the restrictions on wine sales. In Texas, for example, we can buy soup as long as the store is open, but we can’t buy wine on Sunday until noon.

• Wine’s growth was bigger than soft drinks, which lost 3.9 percent, as well as cereal (down 4.3 percent), ice cream (down 0.3 percent), frozen pizza (unchanged), and toilet paper (-0.2 percent). I can’t even pretend to make sense of that. Since when did we need wine more than toilet paper?

These numbers, more than anything else, explain why there is so much opposition to supermarket wine sales in the 19 states where it’s still prohibited. We’re not buying jug wine at the grocery store. That $9 average price means we’re buying many of the same wines we’d buy at wine shops and liquor stores, and small retailers don’t want the competition.

The irony is that, as has been noted on the blog, small retailers may prosper competing with grocers, since they offer something supermarkets can’t — someone to answer questions. The Great Wall of Wine has nothing to do with service.

Photo courtesy of Houston Press food blog, using a Creative Commons license

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