Is the Long Tail of COVID Still Affecting Our Wine Buying Choices?
Opinion Advocates for ideas and draws conclusions based on the author/producer’s interpretation of facts and data.
Remember the dark days of early 2020? Lockdowns, shutdowns, toilet paper shortages, Door Dash and curbside pickups in near-hazmat gear were new to Americans.
An additional phenomenon was the popularity of wine and spirits shops, many of whom experienced significant increases in sales. A number of us attempted to cope with this dramatic lifestyle change as we waited for the introduction and availability of COVID vaccines. Alcohol was our over-the-counter remedy.
Many of us changed our buying and drinking habits, while also increasing our purchasing budgets. Savings from restaurant-dining expenditures were redirected to increases in per bottle wine and spirit purchases. I’ve reported on the surge in wine and spirit sales in the spring of 2020, which seemed to extend into 2021, 2022 and now early 2023.
From COVID-induced shortages to economy-induced shortages, from empty store shelves of toilet paper and paper towels to 50 cents for one egg, from factory closures to supply chain issues, our new alcohol-buying habits have persisted, even in the face of high inflation.
Through each of these seemingly distinct, yet intrinsically linked, periods, wine prices have remained reasonably stable (so far). Yet our spending habits seem to have permanently changed.
The year-long run of heightened inflation has affected many households, as purchasing power – and disposable income – has been negatively affected by macro supply and demand factors, from labor costs to ingredient-price escalation. But not all households or individuals.
A recent industry report on annual wine sales indicates a pronounced trend in increased purchases of premium wines. Defined as $15-plus bottles, sales in this category began growing in 2020 and continued through 2022. While the volume of sales has increased, the total dollar value has increased at a faster clip.
The shift in sales from under $10 to $15 and up is attributable to several consumer attributes:
- Those who in the past held fast to their under $10 wine purchases have discovered a price category of wines that far exceeds the quality level of their previous purchases. Overall, there are very few inferior wines in the market today. Winemakers are capitalizing on new techniques and technology; warming climates are contributing to wines that are increasingly suitable to the traditional American consumer’s palate (fruit-forward and soft tannins).
- Those whose palates were occasionally treated to $15-plus wines pre-COVID have now become consistent purchasers of these premium wines.
- Those who were consistently infatuated with the quality of $15-plus wines have moved up the price scale and are purchasing wines in the $25-and-up price range. Once consumers move to these higher-end wines, their newly-refined palates make it somewhat difficult to revert to lower-priced/lower quality wines.
Several of the specific wines that have benefited from the shift in purchases include:
Sparkling wines. This is the greatest sustained growth category since 2020. As the threat of COVID variants ebb and flow, Americans are consuming more sparkling wine in social gatherings, celebrating delayed or postponed birthdays, weddings, anniversaries or simply lulls in the spread of a newly-identified COVID variant. La Marca Prosecco (a Gallo-owned label) leads all brands of sparkling wine by far. (Its popularity has led to price reductions in many retail shops.)
Red wine. Meiomi Pinot Noir is the largest-selling American wine, followed by La Crema Pinot Noir, Decoy Red Blend and Cabernet Sauvignon and Josh Cellars Reserve Cabernet Sauvignon.
White wine. La Crema Sonoma Coast Chardonnay and Kim Crawford Sauvignon Blanc have been perennial favorites, and in spite of price increases, remain so.
As consumers cope with the trials and tribulations of COVID life, inflation and any number of ideological differences, it seems our new wine habits will persist and persevere.
A question for you: As we seek ways to reduce the stress of life in the 21st century, do you turn to wine – always in moderation of course – as a coping alternative? E-mail your responses to me and I’ll report the results of the survey in a future column.
Nick Antonaccio is a 45-year Pleasantville resident. For over 25 years, he has conducted wine tastings and lectures. Nick is a member and program director of the Wine Media Guild of wine journalists. He also offers personalized wine tastings and wine travel services. Nick’s credo: continuous experimenting results in instinctive behavior. You can reach him at nantonaccio@theexaminernews.com or on Twitter @sharingwine.
