U.S. Market Flooded by Cheap Bulk Wine

The Press Democrat, my local newspaper, had an interesting article on the wine industry this morning.  The first paragraph read, "California wine shipments dropped in 2009 for the first time in 16 years as major U. S. wine companies looked overseas for the cheap wines that cash-strapped consumers increasingly crave."

Wines selling below $7 a bottle are experiencing a surge in demand while higher-end wines are seeing decreased sales, and demand has dropped sharply for the most expensive wines.  Jon Fredrikson, a wine industry analyst, commented, "It was ugly.  Many people I have talked to said it was the worst year in their history.  For small and medium-sized wineries, the year was brutal, as consumers shunned higher-priced wines."

Even though shipments from California decreased in 2009, U.S. wine consumption increased overall.  Market share has shifted from higher-priced wines to boxed wine and lower-priced wine.  Wine shipments have also increased substantially to Asia, especially to China and Southeast Asia.

Bulk wine shipments from overseas -- that turn into lower-priced wine and boxed wine -- have soared.  The largest U.S. wineries have been able to capitalize on the "trading-down" phenomenon by tapping into the globalized supply of cheap wine.  The amount of imported bulk wine increased 87% from 2008 to 2009.  Most of this wine was then bottled in the U.S. and sold as either boxed wine or 750 ml. bottles priced from $3.99 to $6.99.

Many traditional wineries thought that bulk wines couldn't compete, but the improving quality of these bulk wines is changing consumers' ideas about how much they need to spend to get a decent bottle of wine.  This trend of U.S. wineries outsourcing wine had been growing steadily in the past 10 years, but it exploded in 2009.

Occasionally, I'll try a bottle or two of the wine that normally sells for under $7 a bottle.  Some of it is surprisingly good IMO, especially for use as weekday table wine.  For example, I found the 2009 Mendoza Station Sauvignon Blanc ($6.99 at Total Wine, as discussed previously) to be very good.  And IMO the 2007 La Vieille Ferme "Cotes du Ventoux" Rouge (Cotes du Rhone) is a very good to excellent wine that happens to sell for under $7 (see prior post).

I've found most of the brands under $7, however, tend to be flat, one-dimensional, and lacking in structure or character.  But you only need to find one decent red wine and one decent white wine to use as regular table wines.

2007 Comte Louis de Clermont-Tonnerre (Vieille Vignes), Cotes du Rhone-Villages

I tried this wine last night -- a nice, tasty Cotes du Rhone from the village of Cairanne and the Collection Alain Corcia -- made from very old vines.  Good fruit aromas and flavors with a structure somewhat more full-bodied than the 2007 Perrin Reserve Cotes du Rhone discussed previously and about equivalent body to the 2007 Delas St-Esprit.  My wife and I had a slight preference for the 2007 Delas St-Esprit.  The list price of this wine is $10.99 compared to $9.99 for the St-Esprit (at K&L Wines).  Try it and compare for yourself -- I think both wines offer excellent QPR.

2005 Clos l'Eglise, Cotes de Castillon, Bordeaux

Chateau Clos l'Eglise is one of the stars in the relatively new Cotes de Castillon region of Bordeaux which is a few miles east of the elite St. Emilion appellation.  It received 89 points from Robert Parker:  "Now owned by Gerard Perse, this estate now makes attractive, elegant wines.  The 2005 Clos l'Eglise (70% Merlot and the rest Cabernet Sauvignon and Cabernet Franc) exhibits notes of sweet cranberries, jammy black cherries and strawberries, crushed rocks and flowers.  With a dense purple color, medium body, loads of fruit, and a soft, round mouthfeel and finish, it can be enjoyed over the next 5-6 years."

The wine received 90-91 points from Stephen Tanzer's International Wine Cellar:  "Full ruby-red.  Ripe, complex nose melds cassis, kirsch, licorice, earth, mocha and truffle.  Ripe, sexy and sweet, with lovely energy and a youthfully cool quality to the dark fruit and mineral flavors.  Precide, powerful Cotes de Castillon wine, finishing with building tannins and considerable breadth."

This wine usually sells for $36-40, and it is currently offered for $19.99 at K&L Wines while supplies last.  With a price under $20, I think it is definitely a high-QPR wine.  It is a relatively big wine, with good structure and full tannins, that will cellar well for 5-6 years.  For drinking now, I would suggest decanting and letting it breath for a couple hours or more before serving.

2005 Chateau Belle-Vue, Haut-Medoc, Bordeaux

The vineyard for Chateau Belle-Vue is planted with 26-year old vines, and it is located adjacent to famed Chateau Giscours and the elite Margaux appellation.  Robert Parker gives it 88 points, "One of the few Bordeaux wines to include Carmenere in the blend, Belle-Vue's final blend in 2005 is 50% Cabernet Sauvignon, 27% Merlot, 20% Petit Verdot, and 3% Carmenere.  It reveals more tannin along with great fruit, medium body, and plenty of character."

The list price is $26, and Bottle Barn currently has it on sale for $12.99.  If you don't mind moderately high tannin levels, Belle-Vue is an excellent choice for fairly-priced, high-quality Bordeaux.  This wine should age nicely for 6-8 years.  For drinking now, I suggest double-decanting and letting it breath for an hour or more before serving.  (I tasted it over the weekend and the tannins were quite noticeable even with double-decanting -- it was much softer and smoother the second day.)  With the list price of $26, I think it offers only average QPR.  For a sale price of $12.99, I think it becomes a high-QPR wine.

High-QPR Sauvignon Blancs

Sauvignon Blanc has been my favorite white wine for a few years.  As noted in prior posts, there are many alternatives for high-QPR Sauvignon Blancs.  Most are medium-bodied and on the dry side, but each wine may be lighter or heavier in body and sweeter or drier in taste.  So far, 10 Sauvignon Blancs have been discussed in this blog.  Wines under $13 include:

2009 Mendoza Station Sauvignon Blanc ($6.99 from Total Wine)

2008 Bogle Sauvignon Blanc ($10)

2008 Chateau St. Jean Fume Blanc ($12.99 list price, usually can be found for under $10 -- Bottle Barn currently has it for $9.99 a bottle)

2008 Kirkham Peak Sauvignon Blanc, Marlboro ($11.99 list price -- the K&L wine club price is $8.99)

2007 Domaine Chatelain Pouilly Fume (list price $22 -- K&L has it for $9.99 while supplies last)

IMO any of the above wines represent excellent quality for the (discounted) price.  See previous posts for specific comments on individual wines.  For wines between $13 and $20, the following wines have been discussed:

2008 Angeline Sauvignon Blanc (list price $14, usually $11-12 with discount)

2008 Brancott Estate Sauvignon Blanc, Marlboro ($13.99 at K&L)

2008 Kim Crawford Sauvignon Blanc, Marlboro ($14.99 at K&L)

2008 Clos du Bois Sauvignon Blanc ($14 list price, usually $11-12 with discount -- Bottle Barn currently has it for $9.99)

2008 Mill Creek Sauvignon Blanc ($19 list price, usually $15 with discount)

I think all of these wines offer very high quality-to-price ratios (with the discounted price).  My personal favorite is the 2008 Angeline Sauvignon Blanc.  But everyone's taste is unique -- I recommend that you try as many as you can find (at discounted prices) and develop your own QPR rankings.

For example, note that I could have picked up the 2008 Clos du Bois and the 2008 Chateau St. Jean for $9.99 during my trip to Bottle Barn today.  Combining those wines with the 2008 Angeline that I purchased for $11.20, the 2008 Kirkham Peak for $8.99 (I'm a K&L wine club member), the 2007 Domaine Chatelain for $9.99, and the 2009 Mendoza Station for $6.99 -- that gives me six solid Sauvignon Blancs to choose from.

The average price for the six wines is $9.53 a bottle.  Some of the wines might be suitable for weekday table wines (like the 2009 Mendoza Station and the 2008 Kirkham Peak).  You might find that you like the other wines better for pairing with fish, shrimp, crab, scallops, salmon, pasta, etc.  Purchasing two bottles each of the six wines would cost $114.40 -- not a large investment IMO for 12 bottles of good wine -- and you would have a selection of solid Sauvignon Blancs for a variety of meals.

2008 Kirkham Peak Sauvignon Blanc, Marlboro, New Zealand

Here is another Sauvignon Blanc from New Zealand.  When we had this wine for dinner last night, my wife said "What a beautiful floral aroma."  I also noticed some grapefruit and citrus on the nose and palate.  This wine is medium-bodied and very smooth with no harsh edges.

From K&L Wines, "Some floral aromas with perfumed aromas of gooseberries and lime zest.  This wine is crisp and clean on the palate with notes of grapefruit, lychee and minerals.  It has a nice roundness mid-palate with zingy acidity, limey flavors and a delicious mineral finish."

The list price is $11.99, but K&L has a "wine club price" of $8.99 for members of one of their five wine clubs.  For $11.99 I think the wine is very good QPR, but if the price is $8.99, then I think the QPR becomes excellent.

2008 Mill Creek Sauvignon Blanc

This wine was awarded a gold medal and judged to be Best of Class at the Sonoma County Harvest Fair in October 2009.  From the winery, "Pale straw in color with delightful notes of grapefruit and passion fruit with a touch of honeysuckle.  Richly flavored with ripe citrus and hints of tropical fruits.  Bright acidity with a medium body and lingering finish."

The list price of the 2008 Mill Creek Sauvignon Blanc is $19.00, but my local wine shop, Bottle Barn, has had it on sale for $15.  For a price of $15, I think the quality-to-price ratio is very good for an excellent Sauvignon Blanc.  Mill Creek is a small winery in Sonoma County's Dry Creek Valley.