
Or, one more reason why writing about the wine business is so much fun
Two recent wine business news headlines:
“California wines set for increased global market share”
“Price of imported wine in Japan hits new high due to weak Yen”
Because only in wine do two contradictions equal a trend; call it the wine equivalent of 1+1=3. How are California wine exports going to increase if prices are rising in key markets?
Oh that’s right. Rising prices do not cut sales, the law of supply and demand does not apply to wine, and the road goes on forever and the party never ends.
In this, the wine business is full of contradictions. One of my favorites, as noted recently, is the “horrible harvest/great vintage” paradox. Sometime during the first several months of a new growing season, the Winestream Media will report, in terror-bemoaning terms, that plague, hail, and locusts have destroyed the vines in a specific region. Then, after harvest is done, magically and mysteriously, all is well, and the region has produced another excellent vintage. I kid you not. This happens all the time.
The export stories are almost that much fun. To begin with, it’s not like California exports a lot of wine; one of its biggest customers is Norway, which has fewer people than Los Angeles. So the world is hardly clamoring for California wine, even without higher prices. In addition, the dollar is at or near historical highs against a variety of currencies besides the Yen, which means it’s just not the Japanese who are going to pay more money.
And none of this takes into account any pandemic-related supply chain problems. So even if someone is willing to pay more money for California wine, how is the wine going to get there with a shipping shortage?
But not to worry. Because 1+1=3, and the road goes on forever and the party never ends. (And the WC should mention here that Joe Ely also appreciates Texas wine.)














