Santa Barbara Winery, The Fight For A Name

For the first time in 16 years, sales of California wine were down in 2009. It would be easy to assume the economic downturn was to blame, but sales of wine across the US were up 2.1%. On the other hand, sales of wines produced in California were down 4%. There have been similar trends in liquor sales across the US, with bargain brands up and luxury brands down in sales. The furloughed and unemployed masses are reaching for a different kind of stimulus package, and a cheaper one at that. In California, many wines at the high end suffered losses while bargain brands and cheap imports soared. Americans are drinking more wine, just not more of their own.

In wine shops all over the world, the rally cry is “bargain, Bargain, BARGAIN”! Consumers are demanding more for less and getting it. It could be argued that many California wineries have backed themselves into a corner, enjoying year after year of success selling the kingly-wines of Napa Valley and elsewhere for kingly-prices. February’s Wine Spectator offered their annual overview of wine pricing. The average price of a California Cabernet sampled in 2009 out of some 585 was $119.00, even though 66% of those wines scored 89 points or less (just over a quarter scored 84 points or less) on the Wine Spectator 100 point scale. The market is adjusting itself as other industries like housing have. Personally, I would say: serves them right. … Continue Reading