The Wine Curmudgeon

More on the New Normal, in dollars and cents

One of the best descriptions about what's happening in California came from Bloomberg reporter Dan Levy, which makes for a nice followup to Monday's post about the wine market and how much it has changed since the fall of 2008.

Levy has all the numbers in one place and he has the right experts discussing the changes and what they mean:

• The dollar value of U.S. retail wine sales dropped 3.3 percent in 2009 after rising every year and almost tripling from 1991 through 2008. Though consumption increased 1.9 percent, that didn't make up for the fact that U.S. consumers are abandoning wine that costs more than $15 a bottle.

• Sales of wine priced more than $15 declined 10 percent last year, and wine that cost more than $30 fell at least 15 percent.

• More than 30 wineries are for sale in California, Oregon and Washington, the most ever. But properties aren't selling because owners are reluctant to accept the low offers they are getting. Land values in Napa Valley, home to about 400 producers, have fallen 15 percent from the 2007 peak.

Levy also has this gem of a quote: "We went in like blind fools," said one woman who hasn't made a mortgage payment on her Napa property in more than a year. "We didn’t really expect to get the loan, but felt committed when we did."

wine market, wine prices, The New Normal

Wine of the week: Villa Maria Riesling Private Bin 2008

New Zealand is best known for it sauvignon blanc, and deservedly so, for they are among the best in the world. What the Kiwis get much less attention for is riesling -- which is too bad, since they make some very, very nice ones.

The Villa Maria riesling  (about $14, purchased) is a lovely wine, with riesling oiliness (which is a very good thing), some lime zest citrus, stone fruit, and a long finish. Also, it's not especially sweet considering how much residual sugar is in the wine. In this, it's a finely crafted effort, in which the winmaker aimed at balance between the various components -- fruit, sweetness, and acid. Would that more winemakers tried to do this. And, of course, it has a screwcap.

The only drawback to this wine is that it's kind of picky with food (and, in this, is a good example of why some wine is better with some food -- though everyone is free to drink whatever wine with whatever food they like). If you're not going to drink the Villa Maria on its own, it really does need to be paired with a dish that complements it. Think salads or a lighter style seafood. I drank it with potato pancakes and braised red cabbage, and that didn't do much for the wine.

wine reviews, riesling, wine of the week, Villa Maria, New Zealand, white wine

Winebits 120: Chile earthquake, pinot fraud lawsuit, Ridge anniversary

• Chilean wine losses: The Chilean earthquake has caused significant damage to the country's wine industry, but it could have been worse. The Wine Spectator reported that officials expect to lose about 14 million cases of wine worth $250 million. But that's only about 12 percent of the 2009 harvest, which is the good news. Some wineries, though were more hard hit, including Santa Rita and Montes. The latter, in the Colchagua valley, lost of 20 percent of its Alpha M, Folly and Purple Angel wines.

• Consumer files lawsuit: A California wine drinker has sued Gallo and the French company that supplied it with fraudulent pinot noir. The lawsuit alleges that Gallo and its supplier, Sieur d ‘Arques, engaged in unfair competition, false advertising, and fraud in the bottling, distribution, and sale of Red Bicyclette pinot noir. That's an odd lawsuit -- not because fraud was committed by Sieur d'Arques officials, but because of the money involved. What's the point of suing over a $10 bottle of wine. How much in the way of damages -- even punitive -- could a jury reasonably expect to award? Gallo, as reported, was not involved in the French criminal case.

• Happy 50th birthday: Ridge Vineyards, which dollar for dollar may be the best red wine producer in the United States, has celebrated its 50th anniversary. Eric Asimov at the New York Times has the details: "Perhaps because of its longevity and its consistency, and because its wines are actually available to consumers, Ridge tends to be taken for granted, its achievements noted dutifully even as attention shifts to the new, the expensive and the scarce. That seemed reason enough to spend an afternoon visiting Ridge before the celebration."

Chile earthquake, pinot noir fraud, Ridge Vineyards

Wine market update: "The new normal"

When the recession started almost two years ago, the smart money was reasonably sure that the wine business would emerge relatively unscathed. That obviously, hasn't happened.

Instead, we've seen the volume of wine sold remain about the same over the past two years, while the dollar total at the end of 2009 was less than it was in 2007. That is the first time that has happened in decades.

I've spent the past week talking to winery officials, distributors, restaurateurs and retailers about the numbers, and it has become clear that what one importer called The New Normal has emerged -- consumers focusing on wine that costs less than $15, especially in restaurants. Wine drinkers have learned, much to the industry's horror, that they don't need to spend a lot of money to buy a quality, well-made wine.

And no one I talked to expects The New Normal to change anytime soon. More, after the jump:

Wine review: Vinos Pinol Portal Blanc 2008

Patrick Mata is not only an advocate for Spanish wines, but he is an advocate for Spanish wines that taste like Spanish wines. Anyone who doubts the validity of his argument needs to taste this wine.

The Portal Blanc ($15, sample) is made mostly with the white garnacha grape, which is as little known, even in Spain, as its sibling, garnacha (grenache in this country), is famous. Which is too bad, because winemaker Juanjo Galcera Piñol has done the grape proud. His effort has produced a sophisticated, yet food-friendly, wine with peach and floral aromas, an almost fennel-like middle, and a long, wonderful finish. It tastes much more expensive than it is.

Drink this wine slightly chilled on its own or with boiled seafood. The Spanish would drink this with all their goofy seafood (barnacles, anyone?), but shrimp will do just fine. Highly recommended; the only caveat is that availability may be limited.

Spanish wine, Portal Blanc, Vinos Pinol, Patrick Mata, wine reviews

Patrick Mata, Ole Imports

Patrick Mata is the Wine Curmudgeon's kind of guy, and not just because he's one of the world's best wine importers. It's because he understands the value of a buck.

"Why don't wine buyers want more for their dollar?" he asked me during a visit to Dallas this week. "What's the point of that?"

In Mata's case, that means Spanish wines. He is co-owner of Ole Imports, which not only brings in quality wines, but quality wines that are terrific values. Ole products are often candidates for the $10 Hall of Fame, and they get terrific reviews -- not only here, but from people like Robert Parker. Most importantly, they're honest wines, tasting like they're supposed to taste. Mata's producers make Spanish wines, not Spanish wines made to appeal to U.S. palates.

And that's not an easy sell, he says, given the way the wine world works. "That affects my life completely," says Mata, whose family has been in the wine business in Spain for 200 years. "The most successful wines from Australia, from Napa, they have very little typicity. They're one dimensional. They have no sense of place."

Fortunately, Mata has had great success selling Spanish wines with a sense of place. More about how he does it, along with his thoughts on the wine business, after the jump:

Wine of the week: Avalon Cabernet Sauvignon Napa Valley 2007

The Wine Curmudgeon drinks a lot of cabernet sauvignon, mostly because it's the wine that shows up most often when I get samples. Almost every shipment has a cabernet in it, and the wine closet is about half cabernets at any one time. (Why this happens is a complicated question that makes my head hurt, dealing with marketers' perceptions of what Americans should drink and not what we want to drink.)

Having said that, most of the cabernet I taste is quite ordinary -- some fruit, some tannins, some acid and nothing much to distinguish it from the next cabernet in line. And the prices? Don't get me started.

Which is why it's always a treat to post my mostly annual review of the Avalon ($12, purchased). This vintage provides what Avalon always provides -- quality Napa cabernet at two-thirds to three-quarters of the price of comparable wines. It had lots of berry and cherry fruit, decent acid and tannins, and a cocoa powder finish. Serve this with any red meat or red sauce, and remember what the people who make the wine say: "We've taken the ego out of the equation and bring you world class wine at a darn good value."

wine reviews, cabernet sauvignon, Avalon, wine of the week, red wine, California wine