Napa Valley trades down
The economic downturn is not helping sales of ultra premium Napa Valley wines, with high end reds seeing a dramatic fall in sales according to Dan Isenhart, wine buyer at Amazing Grapes Wine Store in Los Angeles. Dan, along with other retailers, says sales in 2009 are down 25%. Instead of spending $50-$100 a bottle, customers are trading down to mid-range wines.
Sales have been dropping since November 2008 resulting in the first annual decline in the retail value of wine shipments from California in 15 years, according to the Wine Institute, the trade organization for California wine. But while revenue is down, the total volume of California wine shipped in 2008 increased by 15 million gallons.