Wine Consumers Focusing On Quality Over Quantity, Retailers Say
September 20, 2024According to Impact Databank, the U.S. wine market is projected to eke out a small value increase this year, despite a 2% decline in volume terms. Wines priced $10 and over are expected to outperform less expensive segments, helping to drive the first post-pandemic increase in value for the industry.
At the retail level, consumers have become more price- and health-conscious, driven by economic pressure and the self-care movement. “Customers are buying fewer bottles per visit, sticking to reliable brands and varietals they know and trust,” says Jon Halper, founder and CEO of the 15-unit retail chain Top Ten Liquors in Minnesota’s Twin Cities. “Even the most elite buyers are scaling back, focusing on quality over quantity or top brands.”
Halper has responded to trends with increased attention on quality wines less than $20 a bottle, staff education, and tastings. “It’s crucial for us to offer meaningful value, providing budget-conscious customers access to better quality wines,” Halper says. “We’re doubling down on product training, ensuring our team is more knowledgeable than ever, ready to guide both novice and expert customers.”
Moving into the fall season, sales of wines from Oregon’s Willamette Valley, France’s Loire Valley, and California’s Central Coast are off to a strong start at Top Ten. Pinot Noir, Cabernet Franc, and Chenin Blanc are picking up steam. “People are looking for wines that match the season and are versatile, sustainable, and perfect for cooler weather,” Halper says.
At Bay Ridge Wine & Spirits in Annapolis, Maryland, wine sommelier and buyer Sam Audia says Cabernet Sauvignon sales usually pick up once the weather cools. “Paso Robles Cabernet Sauvignons have been doing well, including Daou ($26 a 750-ml.), The Fableist ($25), and J. Lohr Seven Oaks ($17),” Audia says.
In the 12 months through July, wine depletions nationwide decreased 7.7%, according to Wine and Spirits Wholesalers of America’s SipSource. Bay Ridge is trying to combat that trend with a mix of inventory. “We are keeping a good base of a lot of things and not laying into any one category heavily,” Audia says. “We’re leaning into more mid-priced wines in the upper teens to less than $30, which seems to be the sweet spot for white and red. Above $30 a bottle has been a tough sell.”
At San Francisco-based online retailer Wine.com, Vermentino, Sauvignon Blanc, and Albariño are leading white varietal growth. “Although red wine still dominates our unit volume at 48%, since June, we’ve seen white wines take share, growing to 35.2% of unit volume, up 0.6%,” says founder and executive vice president Mike Osborn.
Wine.com continues enhancing its website and mobile app with additions such as a Map View. “The ability for customers to view the global offering and discover new regions of their favorite variety has unlocked new customer journeys,” Osborn says.
Meanwhile, Wine.com is joining other merchants and producers by participating in “Come Over October,” a campaign focusing on the time-honored tradition of breaking bread and sharing wine with friends and family. Created by Come Together—A Community for Wine Inc., the promotion celebrates in-person connections.
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