The National Wine
UnClub
Newsletter
March/April 2009
What's Happening?
As the world economy shrinks in response to the failure of the 'old boy' network of banks and other financial institutions to control their own avarice and greed where are we as individual economic units? Are we also going to shrink in fear of not getting what we want from a broken system? That appears to be the case and it's certainly understandable if one has lost their primary source of income through an unforeseen lay-off from their place of employment. The exotic vacation or big-ticket purchase will be put on hold as we use what funds we have to pay the rent and buy groceries.
We are approached in our shop daily by customers asking how the economic melt-down has affected this business and our reply reflects an interesting analysis of what we see happening in the minds of consumers everywhere in this country. People are downsizing plain and simple. If they bought the hundred dollar bottle of Napa Cabernet last year, this year it will be perhaps a fifty dollar purchase. The twenty dollar purchase becomes a twelve dollar purchase, and so on.
The glory days of super star wineries selling everything they can produce at sky-high prices seems to be over and we believe this to be a good thing. Wine of the hundred dollar ilk is intrinsically no better than twenty dollar wine but the demand over the years for certain labels has kept these extreme price differentials in place. We understand the fact of a well-aged rarity like say 1982 Chateau Cheval Blanc fetching an astronomic price due to its scarcity and its degree of quality that is simply outstanding. This is collector wine and is sold like fine art or antique furniture.
However why should the current release of 2005 Chateau Lafite Rothschild or Opus I be so exhorbitant? Find a well-made petit chateau from the same vintage and compare it to the Lafite and you might be surprised at how close they are. Our advice in this area is clear with respect to Bordeaux (presuming you are not a collector-buyer): buy petit chateau (lesser-known labels not classified as great wineries of Bordeaux) from superb vintages (2003 or 2005 currently) and you will have an excellent wine at an extremely affordable price to enjoy during a recession!
With respect to California wine pricing the above-mentioned value approach to buying is a bit more complicated. Finding good everyday wines from the Golden State seems much more difficult than finding good European daily wines. If you can't afford a pricey Brunello di Montalcino from Tuscany you can certainly find a reasonably priced tasty little Chianti or Toscana rosso from that storied wine region. Even in Burgundy one can find value. Don't want to pay the tariff on that Beaune Premier Cru? Fine, we'll offer you a Cote du Beaune Villages at half the price which will certainly provide that exquisite Burgundian Pinot character you're seeking.
What's happening here? Well it's probably becoming more clear that the European attitude towards wine is different than our stateside attitude. They see wine as a daily commodity with a few top-drawer labels for celebratory occasions while we've regarded wine as an elitist, high-priced specialty drink. The California wine industry is getting pummeled in the marketplace by the Europeans and other New World wine regions who've adopted this European attitude towards wine. Their everyday wines are better (more artisanally natural) and are at much lower prices than in California even though the wines are shipped from half a world away!
Of course the top wines of California are as fine as any wine made anywhere else on the planet. One only need to compare same vintage Mount Veeder Reserve with the likes of Chateau Mouton Rothschild to appreciate that this statement is true. The recent film Bottle Shock also depicts this reality which extends back to the 1976 Stephen Spurrier-sponsored taste-off between the great names of France and their California upstart contenders.
At this more rarified level of top quality California wines it is more possible than ever to find value alternatives from neighboring wineries who could be called the petit chateau of California. Our recent Discovery Wine, Guenoc Victorian Claret, is a prime example of this as it compares favorably with other Californian Bordeaux blends at twice its price. One can assume that for every well-known brand there are at least six neighboring wineries who are producing similar quality wines offered in wine shops at much lower prices.
The times they are a-changing but not necessarily for the worse. No one wishes for an extended time of financial distress but if we can change our attitudes about the overpriced value of things that can be a positive amidst the doom and gloom so prevalent today.
Cheers!
Captain Vino