Wine consumption is up in the past year, especially domestic wine, with more folks staying in and young males placing wine on their list of what”™s cool in 2009.
Steve Leon, administrator of WineCT.com, the web site of the Connecticut Beverage Association and owner of WineCellars-4 in Farmington, said he sees people remaining home and hosting much more now than prior to the economic downturn of ”™08-”™09.
According to Norwalk-based Beverage Information Group”™s recently released 2009 Wine Handbook, wine consumption in the U.S. rose 0.9 percent in 2008 to 294.7 million 9-liter cases.
“Imported wines dropped 1.8Â percent, while domestics rose 1.9 percent; a stark contrast to the recent trend when imported table wines fueled not only the growth of that sector, but of the entire industry,” said Eric Schmidt, manager of information services for the Beverage Information Group.
Leon said there is more interest in smaller vintners and wine trails in Connecticut and the Hudson Valley of New York at testaments to that.
“Sales have been fairly steady,” said John Nealon, general manager of Barcelona Wine Bar in Greenwich. “From last winter to now, check averages have dropped a bit per person, where bottles are not quite as expensive. I haven”™t seen that people are drinking more, but what I have seen is that people are looking for more valued-filled options and that”™s where our wine list has been geared. You can go through our list and you can find a bottle that fits your options.”
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Schmidt said although the growth rate has slowed slightly, this marks the 15th consecutive year of case gains. He said due to the current recessionary environment, consumers have become more frugal with their purchases, trading down toward value-priced wines in both the on- and off-premises markets.
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“There”™s more at-home entertaining going on,” said Leon. “We really haven”™t been hurt so much but the pie has gotten smaller.”
Leon said he”™s seen many out-of-work professionals looking to wine store business as an easy-to-enter and easy-to-manage industry.
“It is easy to start up, but without location and knowledge, they don”™t last long,” said Leon.
Leon said he has also seen many young 20- to 30-somethings delve into the world of wine where in the past they were beer devotees.
“A lot of people that used to be beer consumers have switched over to wine, said Leon. “If you went back 25 years ago and went to a party it was not fashionable to drink a glass of wine for a guy, now it”™s more in vogue to drink and be knowledgeable about wine.”
Nealon said at the wine bar he has seen an influx of younger individuals who have knowledge of wine.
“It”™s surprising the growing number of young ladies and gentlemen that can say they like this wine over that wine and why,” said Nealon. “They”™re more in tune to their tastes and the wine culture. People are much more receptive and willing to go out and try something new than they were before.”
Leon said, like with cars, wine and wine knowledge has become a status indicator. “It”™s not uncommon to find a house, not a mansion, with a wine cellar in the basement,” he said.
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Schmidt said the Beverage Information Groups”™ findings are favorable for the wine industry.
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“The 70 million people that make up the Millennial generation, age 21 to 30, are changing perceptions of wine,” said Schmidt. “This generation is willing to experiment with wines at lower price points.”
Lee D Baldieri, chairman of the Fairfield County chapter of the American Wine Society, a winemaker and president of Wine Maker Products in Milford, said 2009 is a different and more challenging time for most wineries.
“Like most manufacturers, wineries are being squeezed to lower cost while trying to maintain value for the wine lover,” said Baldieri. “In a better economy, consumers visiting winery tasting rooms do not normally blink an eye in choosing a bottle of wine to take home. Now wine consumers are looking for more value in their wine selection. This is what a sluggish economy will do to product consumption and the wine industry is no exception.
Baldieri said he sees the economy changing the purchasing of wine, as wine lovers are looking for more value and are focusing on wines that sell for under $10.
“Predicting 2010 is going to an additional challenge,” said Baldieri.
According to the Beverage Information Groups 2009 Wine Handbook, another factor accounting for the rise in U.S. wine consumption is the weakened dollar, which has driven up prices of imported wines. This has triggered an increase in sales among domestic vintages.
