By TOM MARQUARDT and PATRICK DARR
More has been done to study wine drinkers in recent years as producers try hard to introduce the beverage to more consumers. Alas, consumption is down significantly in almost every country, particularly among young people who eschew all alcoholic beverages or who prefer spirits and beer in moderation. Boomers, like us, continue to hold our own because we were around when “60 Minutes” aired its impactful segment on red wine’s benefit to heart health.
Recent studies have darkened the glow that surrounded the boom years in wine consumption, but results vary so much that it is impossible to conclude that wine consumed in moderation is either good or bad. But the projection of sales year after year shows that the attraction to wine as a health benefit is long gone.
On top of this decline is a wine glut in Europe that has resulted to put less wine on the market in hopes of holding prices. In France the government is paying growers to rip up vines; elsewhere, wine or juice is being dumped. For savvy consumers, there are bargains to be found as competition heats up. We’ve read that prices are likely to drop dramatically for the 2023 vintage yet to be released.
The Wine Market Council did a recent study to assess consumer interest. It found that the glow has worn off the COVID binge buying and a tight economy is discouraging discretionary buying. Dining out is more important than a $50 bottle of wine.
Out of the nearly 4,500 U.S. consumers they surveyed, about 34 percent drink wine; 13 percent drink wine exclusively over other alcoholic beverages.
Although baby boomers command the consumption lead, high-income millennials (now 27 to 42 years old) are a very important target for producers. Wealth has a lot to do with consumption for all age groups – more than half of those surveyed who earn more than $100,000 annually drink wine, but only 15 percent of those earning less than $50,000 annually do so.
Scarcity drives prices
We were listening to a podcast on the power of persuasion the other day and were struck by one of the first elements in convincing someone to buy a product: the principle of scarcity.
If you have used Amazon before and noticed that an item has “only three left” or if a store salesman said “This is the last one left,” you know the persuasive power of scarcity. Numerous tests have shown that people are driven to buy something if they feel it may not be available if they wait overnight.
It’s a principle that works in the wine industry just as well.
Screaming Eagle is the poster child, but there are hundreds of wine producers who drive up prices and sales by limiting production. In many cases, there is a waiting period just to lay your hands on a wine that can cost more than $300 a bottle. If they increased production, there would be no scarcity and thus no stampede to their door.
That was the case with iconic wines like Silver Oak, Caymus and even Dom Perignon whose productions were once small. When popularity encouraged owners – often new and larger owners – to ramp up production, popularity waned. Their collector status gave way to cult wines with smaller productions. We are always stunned to find new wines on the market that sell for well over $100 a bottle when they debut.
We got an offer from de Negoce, a reseller of wine launched by Cameron Hughes many years ago. The Napa Valley cabernet sauvignon was available from the producer for $195. Hughes was selling it for $27 — he gets the same wine from the producer with the understanding he won’t identify the source.
He wrote, “The winery bottled their portion and sold us the rest of the blend out of the tank so we have the exact same 100% Cabernet Sauvignon blend as the original bottling.”
In short, the original producer didn’t want to increase production and reduce the notion of scarcity.
With sales down, we question whether these cult producers will be able to maintain their lofty price points.
Big Bottles
Florida Gov. Ron DeSantis signed into law a bill that will allow the purchase of wine in glass containers up to 15 liters. This is surely good news for those of us who want to buy a couple of methuselahs (6 liters) or maybe a family-size balthazar (12 liters).
We assume these large-format bottles were banned earlier out of fear that alcoholics would drop a straw in them and carry on their madness. It was nonsense and we’re happy to see the governor do away with the ban. However, we are puzzled by his comment made at the bill signing.
He said, “In Florida, we are always looking for ways to reduce regulation and improve our residents’ quality of life.”
It’s a bit of an exaggeration to say that a grande-size bottle of wine will improve the quality of life in the Sunshine State.
Wine picks
Hanna Sauvignon Blanc 2022 ($20). This simple and quaffable wine from the Russian River Valley is of great value. Fresh citrus and pineapple notes.
Tenuta Sant’Antonio Monti Garbi Valpolicella Ripasso Superiore 2020 ($23). A great value, this wine is made in the traditional ripasso method with dried grape skins used with fresh grapes in the secondary fermentation. Bright red fruit, medium body and easy to drink. It is aged 12 months in barrel to add complexity. Delicious.
Tenuta Sant’Antonio “Antonio Castagnedi” Amaroni della Valpolicella DOCG 2018 ($50). This is the bigger version of the Monti Garbi and showcases the best from Veneto. Big yet elegant, it is a blend of corvina, Rondinella, croatina and oseleta grapes. Rustic cherry flavors with fine tannins and a long finish.
Tom Marquardt and Patrick Darr, MoreAboutWine, posted on SouthFloridaReporter.com
Republished with permission
Tom Marquardt and Patrick Darr have been writing a weekly wine column for more than 30 years. Additional Wine reviews on MoreAboutWine
All photos are randomly selected and do not indicate any preferred wine. Listed prices are subject to change and do not include tax or shipping.
You can send questions to Tom Marquardt marq1948@gmail.com
Always drink responsibly!
