As we deal with the challenges of our sluggish economy, wine sales are one of the first places we see economic attrition. I have always thought that wine sales should be made part of the ‘leading economic indicators’ index as they tend to foreshadow peoples confidence vis-à-vis which wines people are drinking.

Wines are indeed an epicurean ‘canary in a coalmine’ to our economy at large. When times are good and people are flush, people seek out the so-called trophy wines of Napa valley Cabernets, Grand Cru Bordeaux, and 1esr Cru Burgundies. When times are less rosy, those same wines often reappear in the market at premium wine auctions led by the likes of Zachys, Hart Davis Hart and Sherry Lehman.

In trying to save some dough, folks may trade down to wines that give pleasure but are not as expensive. ‘Tête de Cuvée’ Champagne (the Dom Perignon, Taittinger ‘Comte de Champagne’ sorts of bottles) gives way to tasty non-vintage bottlings. We see less 2^nd and 3^rd growth and more ‘Cru Bourgeois’ Bordeaux wines find themselves being “discovered” and enjoyed.

It can be argued that many of the folks who buy the super expensive stuff aren’t the ones feeling the economic pinch anyway. However, at a lower price level in both wine and socio-economic brackets many changes can be observed. The $75 wines are giving way to the $40’s and the $40’s are giving way to the $20’s. This degradation of price need not always be viewed as being a trade down in quality. Great values are abundant in today’s market and one need not, as we know, spend über bucks to get them. Indeed, I find that when the high end wines soften, many producers feel an obligation to over deliver on their next tier down. This can result in a $15 bottle that tastes like a $25 bottle and the $40 bottle having much of the same fruit and breed that is usually representative of their $75 bottle. In doing so, these producers reinforce the trustworthiness of their brand and the appreciation of their consumers. The timing from vineyard to bottle has greater lag in reds, as it will take more time from harvest to sale, but can be seen more quickly in white wines and earlier released styles.

It’s cyclical of course so don’t expect this phenomenon to last eternally but much like one can find real estate values in a foreclosure market, so too can wine values be found when retailers and restaurants deal a bit more on their wines, and the producers do the same. Consider this your wine stimulus package from the industry! Any amazing values out there you believe are the result of this economic slowdown? Instead of giving you a laundry list of items to try, here’s a tip: the harder it is to pronounce a wine grape or a region…chances are the greater the value - Take that leap!