You heard it through THE GRAPEVINE
If you’ve been following this column recently you know that the United States has recently become the world leader in per capita wine consumption. We consume 13 bottles of wine (2.4 gallons; one glass per week) per year.
If you read the wine media, the perception is that folks are spending a tidy sum on wines recommended by wine critics, typically those north of $25. But the reality is that Americans tend to be very frugal about their wine spending. As a wine-consuming nation, we talk a good story about the wines we purchase, but in the end we seem to be influenced more by the price label on the back of a bottle of wine than the description label on the front.
As I pondered the rise in our overall wine consumption, a few thoughts came to mind about the purchasing profile of a “typical” wine consumer. Where do you fit in? Do you graze with the sheep or run with the bulls?
1. Are Americans supporting the local economy or the global economy?
The answer is–it depends. The overwhelming percentage of wine sold in the United States is domestic (65 percent). However, the term domestic is an often manipulated marketing tool. Are the grapes grown locally and produced locally? Or is grape juice imported from abroad and then processed at a local winery?
Over the last 10 years, American wine demand has grown faster than domestic winemakers can plant vines. A number of them have resorted to importing bulk wines (grape juice transported in large tanks) from South America. Unless the wine label specifically states the origin of the grapes, you may be drinking an “imported” wine. Nearly 45 percent of wine imported from South America arrives in the United States in tanks, not bottles. The good news: this year’s California harvest is estimated to be the largest on record.
2. How much do Americans spend on a bottle of wine?
The sweet spot is the $7 to $10 price range. Domestic choices are bountiful, but wines from around the world are becoming increasingly popular in this price range. The trend is to lower-priced wines. If a wine is perceived as having a high price-to-quality ratio, the reality of the market is that consumers will find these wines and purchase them. Even high-end, expensive wine regions such as Bordeaux and Burgundy are now producing, and exporting to the United States, excellent wines at reasonable prices. Don’t wish to spend $75 to $100-plus on a premium wine from a famous Bordeaux winery? How about an under $15 wine from its neighbor down the road?
3. Which wines are we drinking these days?
Our tastes are changing. What’s declining? White Zinfandel, Merlot and Shiraz. What’s increasingly popular? Moscato, red blends. While Cabernet Sauvignon and Chardonnay still top the list, red blends are the fastest growing category (Apothic and Cupcake Red Velvet lead the pack). I refer to these blends (typically an amalgam of Zinfandel, Syrah, Cabernet Sauvignon or Merlot) as Juicy Fruits: very fruit forward, with mild tannins and acidity. White blends are also popular; Conundrum and Ménage à Trois are the perennial bestsellers.
4. Don’t we have more and more labels to choose from?
Yes–and no. A few statistics speak volumes. There are currently over 7,000 domestic wineries and tens of thousands of labels. However, 84 percent of domestic wines are produced by 2 percent of the wineries; 70 percent of wines sold in chain restaurants are attributable to 10 percent of all brands produced; the 25 fastest growing wines are produced by two wineries (Gallo and Constellation).
Americans are sitting on top of the wine world in many respects. Do the statistics and trends of 2012 portend a new status quo or do they constitute a continuing evolution of the marketplace? Watch for the signs as you open your wallet at your local wine shop.
Nick Antonaccio is a 35-year Pleasantville resident. For over 15 years he has conducted wine tastings and lectures. 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.
