Pandemic pricing: Are we trying to buy less expensive wine?

New data shows consumers have been targeting less expensive varietals

Some surprising pricing news from one of the country’s most respected wine analysts: Consumers have been targeting less expensive wine for more than a year. Sales of varietals that cost less, like sauvignon blanc and “red blends,” are up, while the totals for more expensive cabernet sauvignon and chardonnay are down.

Why surprising? Because prices continue to go up, thanks to the Trump tariff, pandemic-related supply chain snafus, producer and distributor consolidation, and premiumization. But the numbers, from Wine Market Council president Dale Stratton using wholesaler data from April 2019 to March 2020, show that we’re still looking for bargains.

In fact, this is the second bit of pricing news to show this kind of trend. Earlier this year, a study found that the average price of a bottle of wine bought directly from a winery dropped 9 1/2 percent in 2020 – the first decrease in at least a decade.

So what’s going on here?

“I think this is a great question and not one that is easy to answer with one data source,” says Stratton. “I am confident there is still premiumization in the wine category, but there is a consumer group that is more focused on value. This group has always been there and are very valuable to the category, as they tend to be frequent consumers — i.e., one or two glasses every day.”

The sales numbers are especially intriguing since they come from wholesalers and include all wine retailers and restaurants, and not just the biggest stores, chains, and supermarkets that are included in Nielsen reports. So this is data from supermarkets, independents, small restaurants, and even convenience store (measured by the amount of wine sold):

• Red blend sales increased 5.9 percent – more the five times the annual growth rate each of the last couple of years. Blends priced between $11 and $14.99 grew 53.3 percent, while every other red bend price segment was flat or down.

• Sauvignon blanc sales increased 6.5 percent. This number wouldn’t be as surprising if the data only included supermarkets, which are home to dozens and dozens of inexpensive sauvignon blancs. But that it included independents may hint at something more permanent going on.

• Stratton seemed genuinely stunned by the growth of pink moscato, which was up 11.6 percent. He attributed it to the wine’s sweetness, and there’s certainly some truth to that. But don’t overlook its price: Bottles costing $4.50 to $7.99 at retail made up almost three-quarters of pink moscato sales.

• On the other hand, cabernet sales declined 2.2 percent and chardonnay fell 5.4 percent. Which, if we look at pricing, makes sense. Consumers, one Long Island retailer told me recently for a freelance story about red blends, are looking for bang for their buck. They can get that with red blends and sauvignon blanc in a way they can’t with cabernet and chardonnay.