3.5 Billion bottles of wine went unsold last year.....
Further Evidence Wine Sales Are Plummeting........
- Thread starter ibglowin
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Interesting video that evokes a number of thoughts.
Foremost, it is such a shame seeing those beautiful vineyards being razed. It represents the destruction of many years of growth and maturing that would be difficult and expensive to replace should demand change. It is sad that they cannot find another use for the grapes when demand for wine is low. I have no ideas, but it would seem that preserves would be an option. There has to be others.
Attributing the reason for the decline to the WHO warning to me seems questionable because it does not explain why the sales of other alcoholic beverages (beers and spirits) are not declining. It likely has more to do with value, i.e. what is received for what is given. If one is looking for "alcohol," wine might yield the least return. As an example, take a $25 case of beer, a $25 bottle of whiskey and a $25 bottle of wine. The beer at 5% would give 14 oz. of alcohol. The whiskey at 86 proof (43%) would yield about 12 oz. of alcohol. The wine at 14% would yield about 4 oz. of alcohol. In the economy we have today, it would be the lowest value for "alcohol." Moreover, consider the number of "servings" one gets from the three alternatives, a case of beer, 24; a bottle of whiskey 18+ and a bottle of wine, 5.
I know that I am watching my expenditures more closely than I ever have and I would assume many others are too.
bearpaw8491
Senior Member
Agree with Rocky, there must be other uses.
Certainly brings a tear to the eye of all true wine lovers.
Certainly brings a tear to the eye of all true wine lovers.
I think GenZ and Millennials have lots of other options these days than what we had (Boomers). There are a boatload of "hard" seltzers of different types and craft beers that are very popular. Also the legalization of cannabis is many States gives another plethora of options to get your buzz on in a pretty safe and controlled fashion. I am speaking of the edibles category that has sprung up in huge popularity over the last few years in many States.
The one factor here from the video that makes things seem not quite so bad is that grapes that were being plowed up were in Lodi, CA (113,000 acres of grapes planted) and not Napa or other high rent wine growing districts. When that starts to happen then the sky just may be falling for real.
The one factor here from the video that makes things seem not quite so bad is that grapes that were being plowed up were in Lodi, CA (113,000 acres of grapes planted) and not Napa or other high rent wine growing districts. When that starts to happen then the sky just may be falling for real.
jswordy
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The situation - and especially generationally - is the same across all categories of alcohol, not just wine, and so IMO it is not merely a matter of choice. The craft beer industry, for example, is in retreat. Also, people are not choosing to buy cheaper bottles of wine. They just aren't buying it. We saw the beginnings of this change in European grape and juice surpluses being destroyed as many as five or more years ago. I follow the investor side of the industry, and people were beginning to shy away from making financial commitments starting about that same time (which was lovely for my lil bit of wine stocks, lol).
There has been a decided uptick in the number and stridency of news stories about how any amount of alcohol consumption is bad for health, and more features about people like the ones in this video clip, who eschew alcohol (although pricey fake wine does not appeal to me; what's the point?). I think that more than anything else, that trend is having an effect, as well as the influencers that younger people follow.
The legalization of pot in, IIRC, 28 states has also had an effect on alcohol sales, IMO.
What's most interesting to me, though, is that the laws of supply and demand are not bringing down overall retail wine prices per bottle, even as bulk wine, grapes and juice have declined at wholesale. There's a lot of diverted juice and juice that is never pressed these days, and yes, it seems the industry will have to right-size, yet during this glut retail prices are still up there. As we winemakers know, commercial wine is a high margin, marketing-driven commodity. It would seem there would be plenty of room for prices to drop. But nope.
The most robust wine segment still appears to be the higher-priced bottles, as older consumers who still drink and have the resources continue to purchase those.
There has been a decided uptick in the number and stridency of news stories about how any amount of alcohol consumption is bad for health, and more features about people like the ones in this video clip, who eschew alcohol (although pricey fake wine does not appeal to me; what's the point?). I think that more than anything else, that trend is having an effect, as well as the influencers that younger people follow.
The legalization of pot in, IIRC, 28 states has also had an effect on alcohol sales, IMO.
What's most interesting to me, though, is that the laws of supply and demand are not bringing down overall retail wine prices per bottle, even as bulk wine, grapes and juice have declined at wholesale. There's a lot of diverted juice and juice that is never pressed these days, and yes, it seems the industry will have to right-size, yet during this glut retail prices are still up there. As we winemakers know, commercial wine is a high margin, marketing-driven commodity. It would seem there would be plenty of room for prices to drop. But nope.
The most robust wine segment still appears to be the higher-priced bottles, as older consumers who still drink and have the resources continue to purchase those.
Not in my house they didn't!
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When I grew up, we viewed wine as a beverage that rich people drink. Beer, and now hard cider, were beverages for "ordinary" people. There is a cultural shift in the perception of wine, and alcohol in general. Another factor might be the aging of the Baby Boomer generation and other demographic changes.
It is good that there is more awareness of the danger of abuse of alcohol. But that doesn't mean that we all need to become teetotalers. I once had a German friend, and he and his family had a glass of wine with dinner every night, including the kids. That was part of their culture. But if people only drink wine at parties or special events, consumption is a lot lower.
I would be interested in seeing a comparison in the sales numbers for wine, beer, cider, and hard liquor. It would also be interesting to see how that looks for different countries. I found this study by Gallup: https://news.gallup.com/poll/353858/alcohol-consumption-low-end-recent-readings.aspx
And a study by Pew Research: https://www.pewresearch.org/short-r...-americans-and-alcohol-as-dry-january-begins/
The percentage of Americans who drink any amount vs. those who abstain entirely has varied within a fairly narrow range since 1939. Those with higher incomes are more likely to consume alcohol, as are college graduates (likely related to income). According to the Pew Research study, sales at wine, beer, and liquor stores has been rising, with a peak in 2020. Sale figures, of course, are affected by the price, so they cannot be used to compare consumption directly.
Since price also affects consumption, after several years of high inflation, the consumption levels for alcohol are likely to be down.
It is good that there is more awareness of the danger of abuse of alcohol. But that doesn't mean that we all need to become teetotalers. I once had a German friend, and he and his family had a glass of wine with dinner every night, including the kids. That was part of their culture. But if people only drink wine at parties or special events, consumption is a lot lower.
I would be interested in seeing a comparison in the sales numbers for wine, beer, cider, and hard liquor. It would also be interesting to see how that looks for different countries. I found this study by Gallup: https://news.gallup.com/poll/353858/alcohol-consumption-low-end-recent-readings.aspx
And a study by Pew Research: https://www.pewresearch.org/short-r...-americans-and-alcohol-as-dry-january-begins/
The percentage of Americans who drink any amount vs. those who abstain entirely has varied within a fairly narrow range since 1939. Those with higher incomes are more likely to consume alcohol, as are college graduates (likely related to income). According to the Pew Research study, sales at wine, beer, and liquor stores has been rising, with a peak in 2020. Sale figures, of course, are affected by the price, so they cannot be used to compare consumption directly.
Since price also affects consumption, after several years of high inflation, the consumption levels for alcohol are likely to be down.
