I was very curious about the wine industry’s take on the crash of the high-end wine market, which was the highlight of a financial symposium Thursday in Napa.
Seems half the folks expect prices to rebound after the recession ends, and half don’t. I don’t pretend to be an expert on wine marketing, but it’s my sense the consumer rebellion against outrageously priced wines is here to stay. I lay out my reasons over at Whitley On Wine.
I’m convinced the consumer rebellion has had an impact on wine at every price point. I recently spent ten days in Napa and Sonoma and came away with the frightening conclusion that there’s blood in the water. Some of these guys, particularly those who bought into the vintner lifestyle at the height of the market, are in serious trouble and likely won’t make it.
I’m more concerned, however, for the grape growers who won’t be able to sell their grapes this year because wineries are cutting back on production. Or those growers who will have to drop the price per ton to levels that make their businesses unprofitable.
I’m also worried about the little guys who’ve priced their wines reasonably only to see the downward spiral from the top tier engulf them as well.
A seismic shift is looming in the wine industry because the price bubble has finally burst. This is all good for the consumer. The windfall, however, does not come without excruciating pain at the production end.
Take stock now, for the landscape will likely change before your very eyes, before you even know it.
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