WASHINGTON WINE SEPTEMBER 2011

After listening to the @KUOW broadcast of WINE WARS hosted by Marcie Stillman a couple of thoughts came to mind.

First the stellar panel:

Sean Sullivan of the @wawinereport
"Mr Washington Wine"
Who has catapulted himself to the higher echelons of the Washington Wine scene with informed and prolific commentary on all things #wawine.  I've had the pleasure of working along side Sean on many occasions and he is a true professional.

Richard Kinssies of the @grlakewine
 "The Library of Wine"
Has been pushing wine cases for years and there are few people more knowledgeable about all facets of the wine industry.  I've known and admired Richard since his days at the University Village Safeway where he was one of this state's top movers of wine.

Mike Veseth author of "Wine Wars"
"The Globalist"
Brings an educated and rational analysis of international market forces not just on wine.
More importantly he sheds light on the psyche of the consumer and their buying decisions.

They gave us a glimpse of the current Washington Wine Market.  And although they have "forgotten" more about wine than I know, I wanted to add some insight.

My direction is a continuation of what I was sensing from Marcie's comments and also my limited perspective on the US wine scene.

Marcie seemed almost exasperated by the inherent conflict of a loyal northwest consumer who desperately wants to think and BUY local but is forced to act GLOBAL.  See, there are tons of extremely high quality NW wines in the $25 to $45 that we do purchase, but can't afford to drink everyday.  And to find the $10 and under "Bottle a Day" brands we are forced to go to Chile, Argentina, Australia and even parts of France.

Why can't we get more Washington Wines at this price category and/or more value priced NW wine????

The explanations of market history, economies of scale and a world glut were all wonderfully articulated by the panel.  I wanted to add the notion that NW wineries DON"T WANT TO!

They don't want to risk tarnishing their brand to the level of 2 1/2 Buck Chuck.

They are afraid they will never recover their present price points.  No one can absolutely predict the future.  Maybe the NW wineries are short sighted and haven't smelled the coffee.  Maybe those price points, at those volumes will NEVER return.  Many NW wineries have tons of "Old" wine to sell and are cutting back on new vintage production.  So they sit as long as they can with globally inflated prices, hoping that the market will turn just enough for them to sell off their inventory and then more accurately assess production levels.

And when things get tough enough they hide behind "Flash" sales sites or one day only sales to generate cashflow.  Or like Trey Busch at Sleight of Hand they produce 2nd labels like Renegade to move more juice.

Bottom line:

NW wineries are trying to weather a huge global financial storm, move old inventory while trying to maintain a very well deserved image of quality at price points that make their wineries sustainable.

On the high end we are fine.  NW $50 to $150 wines are a steal compared to most other markets.  The local guys like Domanico can use all your help.  Spend a little more and drink LOCALLY!