This week’s wine news: The California grape glut, especially for high end cabernet sauvignon, continues worse. Plus, the Aussies misidentify a grape, and more fun from the Pennsylvania liquor control board
• California grape glut: How much excess is there in the California grape supply chain? There “is still more bulk wine available than there are buyers for it, and that makes bottle price increases difficult to foresee, even as wine consumption has risen sharply. It also means you might get better wine for the same money,” reports Wine-Searcher.com after a wine business symposium last week. In addition, there is apparently more bulk cabernet for sale today than at any time in the state’s history. The kicker? Much of the excess is in high-end caberent sauvignon, so we’re “going to see some grapes meant for the higher-end market coming into the middle range,” says Mark Couchman, managing partner of Vintage Supply Partners – and that’s good news for wine drinkers.
• Whoops: Identifying grape varieties without benefit of DNA testing is difficult; for decades, Chilean producers thought the carmenere grape was merlot. A mixup has happened again, this time in Australia, where wines labeled with the petit manseng grape were actually made with the gros manseng grape. The mix-up has been going on for almost 40 years, when the misidentified grapes were purchased from France. The seller, too, didn’t know what variety the grapes actually were.
• Only in Pennsylvania: The Pennsylvania Liquor Control Board, much beloved by the blog’s readers, has decided that closing all of the state’s liquor stores in the wake of the coronavirus pandemic may not have been such a good idea after all. It has reopened about 15 percent of the some 600 stores in the state-run system. But those lucky enough to have a newly re-opened store near them will have to drink what they buy. No returns are allowed.
This week’s wine news: Will the pandemic finish off premiumization? Plus, turmoil in Pennsylvania’s state wine stores and the favorite DTC grapes
• Is premiumization over? A top wine business analyst has told the industry that its drink less, but drink “better” mantra – premiumization – could be ending thanks to the coronavirus pandemic. Spiros Malandrakis, industry manager for alcoholic drinks at Euromonitor International, told the Harpers UK trade magazine that premiumization is at a crossroads: “What we saw in the recession of 2008 was that even if people that could afford more expensive wines or niche varietals, they didn’t buy them because it looked crass. The context has changed. I’m not saying the industry is over. What we know from history is that people will always continue drinking. It’s not the end of the world but it will be a different world to the one we’re used to.” In this, he’s not the first to predict premiumization’s end. But it is one more voice suggesting that the new normal in the new future could be $10 wine.
• Favorite DTC grapes: This is a contradiction that seems difficult to explain: Why is chardonnay the best selling wine grape at retail, but cabernet sauvignon is the best seller when consumers buy directly from the winery? That’s the result from a recent SOVOS/Ship Compliant study (via Wine Industry Insight), where cabernet was the best seller with 17 percent of volume, almost twice as much as chardonnay. Typically, chardonnay accounts for about 20 percent of retail sales. Any thoughts would be much appreciated.