Does the continuing popularity of $3 wine, which isn’t all that tasty, tell us more about the wine business than the wine business wants to know?
Five times I’ve tasted $3 wine to see if wine drinkers can survive on ultra-cheap wine. Five times, the answer has been no – and the wines have tasted worse each time I have done it. So why do these wines still exist?
Welcome to the deep, dark dirty secret of the wine business — and which is rearing its ugly head this year: We buy wine on price, and if the price is low enough, nothing else much matters. Despite all of the hoopla about premiumization and trading up, $3 wine exists because people buy it. And we buy lots and lots of it.
Trader Joe’s has sold more than 83 million cases of Two-buck Chuck since the wine debuted in 2002, about 4.6 million cases a year. That would make the Charles Shaw brand the 10th biggest winery in the country by volume in 2020 if it actually existed. And, surprisingly, that total is closer to No. 9 Jackson Family and its ubiquitous Kendall Jackson chardonnay, than almost anyone could imagine.
It’s also worth noting the success of E&J Gallo’s $7 Barefoot, which is estimated to sell $1 billion worth of wine this year, about 18 million cases, That would make it the fifth biggest brand in the country if Gallo didn’t own it. And, when we parse the data, isn’t the popularity of White Claw and the rest of the hard seltzers about price? Why would someone buy flavored spritzy water with a bit of booze if it wasn’t cheap? Like Two-buck Chuck, they’re certainly not buying it for the sensual experience.
The other thing that fascinates me about $3 wine? That its adherents take it as a personal affront when I criticize it. How can you be such a snob? they ask (and not always that politely). We’ll ignore for a moment that I may be the least snobbish person in the wine business. What matters is that they need affirmation that buying on price is OK, because that’s the exact opposite of the way the wine business works.
And in this, they miss the point of my criticism. The first rule – and really the only rule – for wine is to drink what you want, but be willing to try different things. They can drink as much crappy, thin, and watery wine as they want. What does it matter what I think, as long as they enjoy it? So should the question they ask not be what I think, but if they really enjoy it?