The National Wine
UnClub
Blog/Newsletter
January/February 2010
2010 Beginnings and Endings
Assessing where we stand in life is always in focus around the beginning of a new year; this perhaps is especially pronounced around the start of a new decade. The beginning of the millennium (Y2K) certainly had its excitement as we all remember! In fact, despite ongoing patterns of relationship, physical environment, and hereditarial influence and circumstance, whether seen as good or bad, we are all given a fresh slate to write our future upon as each new day begins.
Most of us living in these United States are experiencing a continuing state of financial flux as the Great Recession slowly resolves itself. Everyone has been affected by this...even those of us whose personal wealth is seemingly unassailable. The stock market is up as 2010 begins but many billions of dollars have been lost in the stock market over the last two years. Caution is the watchword of the day...and thrift, as good old-fashioned common sense is making a comeback!
In the world of fine wine a realization that certain wine labels have been over-valued has caused a rash of price slashing among once idolized brands. The 'bigger is better' or 'pricey is better' mentality has taken a severe hit when it comes to spending more on fine wines. People get it that just because a certain label is in great demand that they will have to pay an inflated price to obtain said label. However people are also realizing that for every over-priced wine brand there are probably at least six other neighboring estates that have a similar wine as good at half or two-thirds the price.
Before the world economy tanked, the practice for pricing California wines was just to tack on a yearly increase for an established label. (This is rarely seen outside the US except for labels like Santa Margherita Pinot Grigio.) Because few wine buyers knew of any viable alternative they would just accept the hiked-up price and pay it. The race was on amongst fledgling wineries to ascend to the elite club of estates that could keep setting the bar higher for astronomical prices for their fermented grape juice.
The problem with this was that the consumer/wine enthusiast was lost in the equation. The wineries seemed to only care about impressing wine judges at some prestigious wine fair or getting a Robert Parker score of over 90 points. Prices were raised according to the receipt of gold medals and high ratings by wine writers without much respect for what the market conditions were at the time. "Capitalism!" you might say, all well and good, but when your market deserts you because they've found an equal wine at a much lower price (Chile, Argentina, Australia, South Africa. etc.)...well, you get the picture!
As much as we Americans like to complain about the French with their unfathomable political attitudes and behaviors, they have no equal when it comes to pricing their wines fairly according to vintage or market conditions. Certainly there are a few rarified brands (including Domaine de la Romanee-Conti and Chateau Petrus) that don't seem to come down in price because demand for their small-production wines is sustained despite world economic conditions. However the general pattern for French vignerons is to assess market conditions before pricing their new vintages.
Even some of the most highly-rated brands from France's most venerated wine districts have deliberately maintained a higher quality/lower price ratio that is garnering them increased market share against their over-inflated California competitors in the Chardonnay (white Burgundy) and Cabernet/Merlot (red Bordeaux) categories. The French versus California, Steven Spurrier tasting depicted in "Bottle Shock" revealed that California wines could equal their French counterparts. And, at the time, California prices for these varietals were much lower which set the stage for a modern California wine "Gold Rush".
That "Gold Rush" for Californian wine is now over as the market comes down to earth by facing today's economic realities in the cold light of a winter's day. Wine is now being considered by most wine enthusiasts as a food; a part of the culinary world. Most foods are affordable to everyone with a modest (Middle Class) income. Wine prices are coming into line with this...finally! Certainly there will always be exceptional wines that will be only considered as luxury purchases; occasional libations to be purchased when the significance of the moment seems to call for something special. Analagous food choices might be Beluga caviar or rare white truffles; not everyday foods but when the moment is special then why not buy something rare and expensive to celebrate it?
Yes, 2010 presents a 'brave new world' challenging us to step forward with confidence in all our personal and collective endeavors. We want to take this opportunity to celebrate the rise of common sense and the maturation of the American palate! And remember, Captain Vino continues to be gladly at your service helping to keep you informed about the wonderful world of fine wine!
Cheers!
Captain Vino