The current economy, radically different from the pre-October 2009 version, has had some dramatic effects on wine sales and wine in general out in the so-called real world and much of what you might well have intuited out there is likely to be true. Let’s explore.

According to an October positing on Decanter Online, “Napa Suffers at High End,” ultra premium wines, especially those higher end babies from Napa Valley, are taking a real hit out there. In this online state of the nation put forth by Jeff Cox and Adam Lechere, they claim that these higher-end Napa wines are suffering the most in the recession, with some mighty big names being discounted by nearly a third off of their standard retail pricing. While they point out that overall wine sales continue to rise (I believe that would make 2009 the 16^th consecutive year on increased total wine sales in the USA), the small uptick (0.6% according to Impact Databank Review and Forecast) is coming on the value end, more in the $8-12 range and not in the higher end (wines that sell at US $50 and above which are essentially DOA both in retails stores and in restaurants, where they’d be selling at US $75 and above (mark up and cost dependant)).

Cox and Lechere quote the universally respected Vic Motto of Global Wine Partners (an investment banking service) who notes that, ‘For some, business is down 30%.’ Not a great thing. Also, wines that have traditionally sold at lofty prices tags (Phelps Insignia, Caymus Special Selection, etc.) can be found at considerably reduced prices, especially if you shop online. Great news if you have the inkling, desire and the wherewithal to spend- much like other ‘nice to have but not gotta have’ luxury items in the current economy.

The authors go on to note that it’s not just the ‘big names’ that are seeing price attrition but Napa Valley’s so-called ‘super seconds’ (a play off the Bordelais chateau that are considered in the top tier even though the 1855 classification places them lower). Well regarded names like Shafer are taking hits as well. Sadly, the cult wines seem to be staving this off some as the people on the merry-go-round of these small and desirable mailing list sales boutiques are afraid that if they don’t buy their wine allocations that, like season tickets holders of sports franchises that don’t buy their tickets every year, they’ll be dropped and their coveted wines sold to someone else.

And lest you think that it’s just Napa Valley that’s seeing tough times, one need look no further than the historic bellwether of la grande France to note that there’s trouble in ‘Ville Rive’ (River City for those non-Francophiles). Jancis Robinson MW noted in a recent blog that exports of still French wine are at their lowest since 2000, according to official figures for the 12 months to June 2009. Ouch.

Needless to say it’s whacky out there but in the words of Confucius, ‘May you live in interesting times’. Don’t know how the producers of high end wines would feel about Confucius right now.