Wine and the Economy

ARTSdiningentertainment Wine and the Economy by Jon Genderson ith the economic downturn affecting everything from housing to automobiles to jobs, what is happening to the wine market? The answer is: quite a lot. Most people assume that when the economy gets bad, people drink more. That theory may well ring true, but as consumers spend less, they spend less on wine. This equation bodes well for producers of inexpensive wines, those who sell for under $10. The slow economy has not yet hurt wines that sell for under $20, but those sales are flat. The big hit has occurred in wines that sell above $50 with a big drop off in sales and those selling above $100 are really hurting. How will this affect prices over the coming year? I believe moderately priced wines will hold their prices as they seek to increase sales. Producers of more expensive fine wines will be faced with some very hard decisions. In California, where prices have risen dramatically over the last six years, we could see quite a few labels disappearing from the wine scene as undercapitalized producers must sell their vineyards or go bankrupt. The question remains, who will buy them? Many well capitalized producers may just sit on their inventories waiting for demand to return, but most will likely have to lower prices. I have spoken to several producers in Burgundy who report slow sales of the soon to be released 2007s, an excellent vintage for whites. Most of these producers absolutely cannot lower prices as they pay so much for the grapes. They are greatly concerned. We may see the greatest challenges coming from Bordeaux. The initial success of the excellent 2005 vintage future campaign at record-breaking prices led to even higher prices upon their release. With the stock market crash in October, prices have declined, and there are now many great buys in recent vintages of Bordeaux. All this leads to the soon to be held en primeur (futures) campaign for the 2008 Bordeaux vintage. The owner of Château Petrus, Bordeaux’s most expensive wine, Jean-François Moueix, told France’s Nouvel Observateur newspaper that he “can’t exclude the possibility that there will not be an en primeur campaign in 2009.” Mouiex said the classified growths of Bordeaux have been in a dangerous speculative bubble since 2005, and price drops in subsequent vintages have been insufficient. “The châteaux believe they are victims of the financial crisis, but they have orchestrated the problem [of excessive pricing],” he said. “If négociant houses can’t buy or obtain lines of credit for their allocations, the wine will remain at the châteaux. And if there are not enough takers of allocations, there won’t be any en primeur sales.” While Moueix’s comments have ignited a furor in Bordeaux, many buyers of Bordeaux agree. Most merchants in America have no plans to purchase futures if prices remain at the current level. The outlook for Great Britain is even worse as the pound is now only slightly higher in value against the euro, having dropped over 20 percent. The English pound was around $2 for the last several years and now trades below $1.50. England and the United States account for a very sizable market for the Bordelaise. It will be interesting to see how this will all pan out. The good news is that there will be lots of bargains for those consumers W looking to improve their cellars or just drink really fine wine at bargain prices. The concern over the credit crunch has led many importers and wholesalers to reduce inventories, and this leads to great buys for consumers. Below is a sampling of some of the great bargains now available: Casanova di Neri Brunello 2003. Reg.: $59.99, Sale: $39.99 It is a dark, brooding expression of Brunello that shows a wild, unrestrained personality, with deep dark fruit flavors and mature yet unresolved tannins. Neri makes this Brunello from his family’s original holdings located around the estate. The wine is aged in cask. Cascabel Shiraz 2003. Reg.: $34.99, Sale: $19.99 This elegant shiraz seems more classically European than South Australian. This is a terrific, mature wine with the flavor and spice of Cotie Rotie. It reveals a floral nose of violets, honeysuckle, black raspberries and cassis with extraordinary elegance and complexity as well as an opulent, multi-layered finish. Conundrum 2007.Reg.: $27.99, Sale: $19.99 This popular California white was originally produced by Caymus Vineyards and had soared to almost $30 a bottle. This very fruity blend has layered floral, tropical and spicy flavors along with an off-dry finish that make it a good match for spicy and Pacific rim cuisine. Craneford Cabernet Sauvignon 2006. Reg.: $29.99, Sale: $19.99 It exhibits a classy perfume of cedar, spice box, black currant and blackberry. Full-bodied, the wine has gobs of spicy dark fruit flavors with mocha and chocolate making a presence. This wine is nicely balanced and has a long, fruity finish. Craneford Quartet 2005. Reg.: $29.99, Sale: $19.99 The proprietary Bordeaux blend of 50 percent cabernet sauvignon, 40 percent merlot, 8 percent shiraz and 2 percent cab- 94 ★ HillRag | February 2009 RATED ONE OF THE BEST WINE SHOPS by Washingtonian Magazine July “Best & Worst” Issue ernet franc is a brilliantly crafted effort revealing flamboyant aromatics of lavender, black currants, cedar, licorice and roasted meats. It is a juicy, fullbodied red with loads of sweet tannin and glycerin. Ferngrove Dragon Shiraz 2005. Reg.: $29.99, Sale: $14.99 This Western Australian shiraz has an expressive bouquet of smoke, violets, spice box, pepper, blueberry and blackberry. Medium to full-bodied, it has good depth and concentration while retaining its elegant personality. It is nicely balanced with excellent length. Wesmar Zinfandel Russian River Valley 2006. Reg.: $39.99, Sale: $19.99 A classic Russian River Zin with elegant notes of blueberries, raspberries, crushed rocks and white flowers. This is a pure, rich, concentrated Zinfandel that is a delight to drink now. Chateau Reignac Bordeaux Superieur 2003. Reg.: $29.99, Sale: $19.99 Robert Parker calls Reignac “the poster child for a modern-styled,” “better than its pedigree” Bordeaux Superieur. “The wine’s high quality is a testament to the exceptional commitment demonstrated by proprietor Yves Vatelot.” The elegant, spicy 2003 Reignac reveals sweet cassis fruit, notions of smoke and herbs, supple tannin and low acidity. Chateau Grand Puy Lacoste Pauillac 2003. Reg.: $69.99, Sale: $39.99 This delicious Pauillac has an intense bouquet of black currants and ripe black cherry. It hits the palate with a good fruit-full body that leads to a long, complex finish. It balances the weight with elegance and charm. This is a gorgeous 2003 that is lovely to drink now. Chateau Clos Les Lunelles Cotes de Castillon 2004. Reg.: $49.99, Sale:$29.99 Robert Parker called this wine “perhaps the biggest sleeper of the vintage … it tastes like a top classified growth rather than an obscure Cotes de Castillon.” Chateau Monbousquet St. Emilion 2004. Reg.: $59.99, Sale: $39.99 This delicious wine has abundant amounts of sweet black cherry fruit intermixed with black currant, licorice and spice. Round, generous and silky textured, it is the most developed and forward Monbousquet produced in recent years. Roederer Cristal Champagne 2002. Reg.: $349.99, Sale: $199.99 Once the club-drink of choice for NBA stars and rappers, the venerable house of Roederer is now having trouble selling triple-digit Champagne. Subtle notes of pears, flowers, spices, mint, minerals and oak are woven into a cashmere-like frame of extraordinary grace and elegance. This beautifully-sculpted Champagne possesses notable clarity but with the additional depth of fruit that is characteristic of this vintage. It is a gorgeous, seductive Cristal of the highest level. Jon Genderson, co-owner of Schneider’s on Capitol Hill, writes the monthly “Wine Guys” column for the Hill Rag. He can be reached at 202-543-9300. Schneider’s is located at 300 Massachusetts Ave. NE, or visit the store online at www.cellar.com. ★ Listed in the Wall Street journal as one of the most enjoyable places to shop for wines nationwide. Thousands of Wines and Spirits on Sale!! Check out the entire sale on our award winning website (below) “Best Website Award”, 2008 by the Wine Spectator’s Market Watch “One of the Best Wine Stores in the Country is Right Here on Capitol Hill” SELECTION The country’s most complete range of spirits, beer & wine. Our old and rare wine list is the most extensive anywhere, and it’s in your neighborhood. PRICING We will not be undersold. Come see for yourself. SERVICE Second to none, with seven full time wine specialists to assist you. Come in and be treated like family! WINE SALE: Rio Seco Chardonnay 2007 Rio Seco Malbec 2006.....................6.99 Humberto Canale Sauvignon Blanc/Semillon 2006............6.99 Spada Toro 2006...........................................................7.99 Cormerais Cheneau Muscadet 2007.................................7.99 McClean Syrah Rose 2006..............................................9.99 Domaine Vieux Micocoulier Cotes du Tricostin 2003............9.99 300 Massachusetts Ave., NE • www.cellar.com 1.800.377.1461 • 202.543.9300 • fax: 202.546.6289 capitalcommunitynews.com ★ 95