American Wines are On Trend
The coming year ’ s forecast looks rosy for American wine retailers and American vintners alike . Stability in the US economy and favorable demographic trends are currently pointing toward continued growth in wine sales in 2017 , so the industry looks likely to build on gains made in recent years .
On the pricing front , consumers are continuing to trade up in 2017 . While more than 80 % of wine category volume still occurs below $ 10 at retail , national data shows that consumers are increasingly seeking more premium offerings , and the most significant growth in the first two quarters of this years is occurring above $ 10 a bottle .
Most retailers across the country have felt this “ premiumization ” trend . At Oliver T ’ s Market in Grand Blanc , Michigan , partner and wine buyer Chris Capoccia remembers that he used to ask every customer about their budget as a starting point . “ When we started , I ’ d ask if $ 15 was too much and for a while that was a line in the sand . Nowadays , it ’ s frequently the case that $ 20 isn ’ t too much and often $ 30 isn ’ t either .” by MARNIE OLD
Those spending more are still looking for certain quality factors in his view – noble grapes or top appellations – but he notes less reluctance to spend more on local products in particular . “ Michigan makes some good wines and people are increasingly open to trying them ,” he says . “ We ’ ve doubled our local wine selection in the last 5 years , to what ’ s now 12 linear feet of six-foot shelving .”
Premiumization isn ’ t felt equally by all retailers , however . Just one state over Jason Jonas , the general manager at Timer ’ s Beverage Center in Racine , Wisconsin , says his operation sees more bargain hunting than trading up .
“ If anything , what I ’ m seeing is pushing the other way ,” he says , but he ’ s not sure if that ’ s entirely a reflection of his customer base . “ Our distributors are getting more and more aggressive on price , so we ’ re still seeing the
StateWays | www . stateways . com | September / October 2017 39