10 thoughts on “Wine Sales Skyrocket! Is it Obama & Optimism? – Part 1

  1. John says:

    Great piece. I’m in the industry and work for a winery (one that has several pieces on your front page). I found your site a couple weeks ago and have been checking several times a day. I’ve also shared it with several of my colleagues. Good writing. I like the fact that you seem to go a little more in depth rather than just consolidating existing news.
    Don;t forget to post your twitter username on the front page and then twit when you have a new post.
    Continued luck!

  2. AC says:

    Our numbers have just rolled. I’ll do a dive and see what happened in flyover country. Let you know. enjoying your site tweaks

    AC

  3. somewineguy says:

    Small, family-owned winery guy here. Our Jan. 09 was 10% over forecast and 13% up versus last year. Our Feb. 09 looks good so far…keep pushing people!

  4. David Gaier says:

    We’ve gotta hope that this isn’t a blip; resurgent wine sales would not bring us out of this nosedive but would be a bright slice in consumer spending. Maybe people just needed a pick-me-up in the January gloom with a little boost from the Inaugural. For sure, wine retailing is still tough sledding right now.

  5. lperdue says:

    Yep. One month does not a trend make. But we can hope & pray.

  6. Josh M. says:

    Can anyone tell me what their # 1 month is (on average). Is it December? I’m doing a little research and I’m finding it hard to find relevant information to the wine and vineyard industry & statistics.

    Cheers,

    Josh

  7. Bubbles Gal says:

    Great site (just made you my new home page) and great piece! I would be most obliged if you could share some of the details of the champagne/sparkling segment in your next analysis!

    I am absolutely GIDDY on account of this news. Fingers crossed we’ve seen the bottom and are heading upwards, although that certainly doesn’t seem likely.

  8. Harvardwine says:

    Sure the wine sales increase! but the profit margin is decreasing in an alarming rate.
    In 2008, because of the fuel cost, the cost of making wine increased by 10-15%. The 2008 harvest was lower than expected and in conclusion the cost of one gallon of wine increased significantly.
    Selling higher volume is great but if numerous wineries sell at loss in order to supply the cash flow, it will become a severe downturn for the wine industry.
    In conclusion, I will not be surprised to see the number of existing wineries decreasing by the end of 2010.
    Also, Italian and Spanish wines will become the major competitor for US big brands. In these two countries, Bank are seizing inventories and are selling to wine negociants for a stunning low price.

    This is not how much you sell but how much money you make by selling!

  9. somewineguy says:

    @ Harvardwine:

    Yes, profit is still important as is the flow of cash. When the banks sh*t the bed, lines of credit dried up and wineries were probably forced to move inventory to bring cash in (to produce the next releases). I know of many virtual brand that did not produce a 2008 vintage for this reason.

    Our company was not impacted in this manner, but you mentioned higher prices of making wine and those are valid. Our response to those increased costs were simple:
    1. wear out our suppliers for better pricing, sometimes making long-term relationship commitments for best deal prices
    2. reduce costs by going with cheaper inputs (e.g. some corks are more expensive just on cosmetics, not performance)
    3. cut spending below the line (e.g. travel, competitions, charitable donations and all things not *directly* related to sales revenue)
    4. suspending raises and bonuses temporarily
    5. shifting production to more profitable wines

    My conclusion, much like yours, is that many small wineries or virtual brands (e.g. wine maker labels) will disappear. In the short run, we will have to compete with inventory blow outs clogging up the retail channel. In the long run, I believe the strong will survive and be better for it.

  10. vino33 says:

    Would be curious to know to what extent, if any, increases in off-premise wine sales were offset by decreases in on-premise sales.

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