Wine sales booming

Many leading retailers around the U.S.report that imported wines are still strong, although with last year's record harvest in California, changes may be coming. Most report sales booming across the board for both national and imported wines. One retailer, Ron Loutherback who is co-owner of three Wine Club stores in California, reported an increase in dollar sales from $26 million in 1996 to $53 million in 1997.

Reflecting some frustration with California producers, Loutherback said, "All this shows healthy growth for The Wine Club, but it could have been even more impressive if there had been more quality California wines allocated to us to sell to our loyal California customers."

Despite his concern about getting enough California wines to satisfy his customers, the results of a survey by Gomberg Fredrikson & Associates of San Francisco commissioned by The Wine Club turned up a number of encouraging words for vintners:

* 35% of those surveyed are drinking more wine than they were two years ago, compared to 56% drinking the same amount and only 9% consuming less wine;

* 70% call themselves "wine lovers who know a lot about wine" and 21% said that "wine is their passion";

* 45% of Wine Club customers buy from 6 to 15 cases of wine a year; 38% buy from 16 to 50 cases per year and 3% buy over 50 cases;

* The median dollar amount of the purchases is $2,000 per year, not counting wine purchased at restaurants, which comes to $500 per year;

* 84% buy wine for their cellars with only 3% buying wine for same day consumption, 38% have 100 to 500 bottles of wine cellared, 18% have 500 to 1,000 bottles and 15% have cellars of over 1,000 bottles;

* In restaurants, 40% always order wine, 30% order wine almost every time and 64% sometimes take their own wine to a restaurant;

* In terms of demographics, 14% of the respondents were women, 17% are in their 30s, 29% in their 40s and 50% in their 50s.

* A huge majority, 71% believes that California coastal wines are the highest overall quality of wine, followed by Bordeaux at 15%. Some 40% believe that California coastal wines represent the best value, with 21% opting for Chile and 19% for Australia;

* When asked which two red wine varietals they purchased most, 35% chose Cabernet Sauvignon and 20% selected Zinfandel; of white wine purchases, 46% buy Chardonnay and 32% Sauvignon blanc.

Also on the West Coast, Tony Giovanzana at Colt Liquors in San Francisco said he had been seeing a lot of interest in imports from Spain. "The Priorat area of Spain is very hot," he said, "as is the Ribera del Duero and Rioja. The good thing about Priorat is that there is a price range from $9 to $100, so I can meet customer demand. There are also some very interesting wines starting to come out of Portugal."

In other areas, Giovanzana sees strong interest in South Africa, especially the Sauvignon blancs and in Italy. "Valpolicella is, I think, going to be one of those varieties that really hit. It has a flavor profile that Americans like."

Giovanzana believes the world is heading for another wine glut with large harvests around the globe in 1997. "You can find wine anywhere now, northern Italy, southern France, California. There's plenty of wine available at the $10 to $20 price range." He believes that South America will suffer most from the potential glut. "I don't have much interest in South America. Chile is going to be hurt hard by the wine glut."

Johnson C. Ho at the Knightsbridge Wine Shoppe, Ltd. in Northbrook Ill., a shop that focuses on fine wines, said that people are curious about the new upmarket Chilean wines, such as Sena, but are not coming back to buy in case lots after sampling a bottle. "On the other hand, I'm selling 1995 Burgundy at $5000 a case in multi-case sales," he said. "The 1995 Bordeaux and Chianti is also moving well. The South African wines are becoming 'discovery wines' and New Zealand is very popular." Ho added that California price increases have hurt demand in his shop for Meritage and Cabernet Sauvignon.

Michael Bittel at Sunset Corners Fine Wines and Spirits in Miami, Fla. said price increases for Bordeaux and North Coast California Cabernet had sent many of his customers to the Rhone Valley for wines, especially the region of Chateauneuf-du-Pape. "The people who once bought Bordeaux and California Cabernet are finding those wines a very successful alternative at a lower price and a track record," he commented. Bittel said he is currently stocking 17 different Chateauneuf-du-Papes. In other areas Bittel also mentioned Spain as a hot region, especially the Ribera del Duero and Navarra. "Our Spanish wine sales to 25%."

Bittel, who also sells fine spirits in this shop, has noted a trend that could have some impact on fine brandies and cognacs. "I was recently at a wine dinner where a number of fine Bordeaux wines were consumed. Then, after dinner, the host brought out the tequila bottles. People are drinking tequila like cognac and price is no object."

John Osborne at Astor Wines & Spirits in New York City noted that imports were probably always stronger on the east coast. "The 1995 Bordeaux has been flying off the shelf as quick as I can put it out. Price does not seem to be an issue," he said. He added that with the shortage of California wine in the $15 to $30 range, Australia has moved in to fill that niche. "Chile is doing well but the strength of Australia has been surprising."

Wilfred Wong, who is a buyer for the California-based Beverages, & more!, now nationwide with 25 stores, said the hot imports are "anything in the $6 to $9.99 range - Italy, Languedoc, Chile, Argentina, northern Spain. Anything offering good wine at a good price, that's what's hot."

Resources:

Astor Wines & Spirits, 12 Astor Place, New York NY 10003; Tel.: (212) 674-7500; Fax: (212) 673-1218.

Beverages, and more!, 201 Bayshore Boulevard, San Francisco, CA 94124; Tel: (415) 648-1233.

Coit Liquor, 585 Columbus Avenue, San Francisco, CA 94155; Tel.: (415) 986-4036; Fax: (415) 296-7825.

Gomberg Fredrikson & Associates, 703 Market Street, Suite 1602, San Francisco, CA 94103; Tel.: (415) 957-5071; Fax: (415) 957-5804.

Knightsbridge Wine Shoppe, Ltd., 824 Sunset Ridge Road, Northbrook, IL 60062; Tel.: (847) 498-9300; Fax: (847) 498-4114.

Sunset Corners Fine Wines & Spirits, 8001 Sunset Drive, Miami, FL 33175; Tel.: (305) 271-8492; Fax: (305) 271-5390.

The Wine Club stores are at 2110 East McFadden, Suite E, Santa Ana, CA 92705; Tel.: (714) 835-6485; 1200 Coleman Avenue, Santa Clara, CA Tel.: (408) 567-0900; 955 Harrison Street, San Francisco, CA 94107, Tel: (415) 512-9086.

RELATED ARTICLE: U.C. DAVIS OFFERS WINE COURSE FOR DISTANCE LEARNERS

For the first time, the University of California at Davis, Department of Viticulture and Enology, in cooperation with University Extension, is offering a course for credit that can be taken off campus.

The course, Introduction to Winemaking is a very popular course, enrolling about 200 students each quarter, with a waiting list of 30-50 additional students. The course offers information on technical aspects of winemaking, as well as an overview of the history and economics of major winemaking regions around the world. Students will receive three units of university credit.

All that is required to enroll is a VHS-format VCR, television and computer with internet access and e-mail. Upon enrollment, students receive a set of 10 videotapes of all lectures, a course reader and access to the class web site. Access to the instructor and teaching assistant is provided via e-mail. Quizzes will be administrated either online or in a traditional format with the final exam completed in an officially proctored environment.

An option is for wine industry organizations to offer the course on-site to their employees as on-the-job training. The class will be taught by Carole Meredith.

For enrollment information contact the university at (800) 752-0881 and ask for department 2412. Enrollment must be completed by September 1 for the first quarter. Course fee is $500 for individuals and $450 per individual for groups of three or more.

RELATED ARTICLE: WATCH OUT FOR AUSTRALIAN DURIF

Durif is a reasonably rare red grape variety but it is also one which produces distinctively flavored full-bodied wines with excellent color.

It originates from France's Rhone Valley, is widely planted in California - where it is known as Petite Sirah - and has also found solid support in northeastern Victoria and the Riverina district of New South Wales. De Bortoli Wines owns about half of Australia's plantings of Durif.

"Durif, like Shiraz, makes dry reds that have plenty of rich, soft, meaty flavors masking a firm backbone of tannin," said Darren De Bortoli, managing director of the family company and chief winemaker for its Riverina operation.

"This gives them immediate appeal and also makes them at least medium-term cellaring propositions."

The recently-released Deen De Bortoli 1997 Vat 1 Durif also highlights the value that this range offers Australian wine drinkers.

"Demand for Australian red wine is escalating both here and overseas - and so is its price," said Darren De Bortoli.

"I really do think that being able to offer a dry red of this quality for about $11 is quite extraordinary."

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