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Central New York Wines Face Tough Price Competition CNY wines face tougher price competition due to a glut of California grapes

THE PRICE OF CALIFORNIA WINES DROPS FAST DUE TO GRAPE GLUT

By Jiaqi Huang

The annual State of Wine Industry report has been published this month. It predicts the price of wine will drop to its lowest level in five years, thanks to a surplus of California grapes.

Vinomania Pearl, a 20-year-old wine store in Syracuse, sells around 40 different kinds of California wines. The store owner says he offers less than 10 types of local New York wines because California wines are more popular and cheaper.

“They’re more fruit-forward. They’re more likable to the public. If you’re a novice wine drinker, you’d like them because they’re less tannic. They’re smoother and they have more fruit and they have a better nose appeal to them. ”

As the price drop is making California wines more advantageous in their retail values, Decker says the price competition on store shelves becomes tougher for local wineries. They also face other problems.“They don’t have a glut usually. They have more of a problem with the bad weather. If the weather is really too cold, it’s really too warm or there’s too much rain that can screw things up like that.”

But some local wine consumers say they will continue to support New York wines.“I live in New York, and I try to support as much local economy as I can. We believe in farm to table dynamic, so we generally try buying everything we can that’s local. ”

While baby boomers have driven the wine sales for the past 30 years, the millennial population hasn’t embraced wine.

“It’s easier to know about beer and bourbon than it is to know about wine because wine is something harder for them to figure out.”But the wine price drop could be a growth opportunity for the wine industry.

“If wine pushes themselves in a lower market or a lower price point. Here’s the deal. Six beers for $24, a bottle of wine for seven. ”

Jiaqi Huang, NCC NEWS.

SYRACUSE, N.Y. (NCC News) —The annual State of Wine Industry report has been published this month. Its author, Rob McMillan, predicted wine consumers will enjoy the best wine values in 2020. The price of wine is expected to drop in its lowest in five years, thanks in part to a huge surplus of California grape.

“This oversupply, coupled with eroding consumer demand, can only lead to discounting of finished wine, bulk wine and grapes,”McMillan, also the founder of Silicon Valley Bank’s Wine Division, wrote in his report. “US wine consumers will discover unprecedented retail value in 2020 and should buy up.”

Vinomania Pearl is a 20-year-old wine store on Pearl Street in Syracuse, offering around 40 different kinds of California wines categorized from red, white, semi-sweet dry to dessert wine, etc. Store owner Gary Decker said he sells fewer than 10 types of local New York wines.

“[California wines], they’re more fruit-forward,” Decker said. “They’re more likable to the public. If you’re a novice wine drinker, you go to them because they’re less tannic. They’re smoother and have a better nose appeal.”

Comparing their average prices, Decker said California wines are cheaper than local wines.

“You can get California wines anywhere starting from about six dollars,” Decker said. “In New York State, the price starts more like about $10 and up.”

While the price drop could make California wines more advantageous in retail value, the price competition becomes tougher for local New York wineries. Decker said local wineries usually don’t have a grape glut, but they face the problem of bad weather, like snow days. 

“California grapes dry up easier because of the better weather,” he said.

However, Central New York wines are not likely to lose some of their longtime consumers.

“I try to support as much local economy as I can,” said Barry Lentz, a local wine lover. “We believe in farm to table dynamic, so we generally try buying everything we can that’s local.”

While baby boomers have driven the wine sales for the past 30 years, the wine industry hasn’t well-targeted their biggest consumer: the millennial population. However, Decker said the price drop could be a good growth opportunity for the industry.

“If wine pushes themselves in a lower market or a lower price point,” Decker said, “here’s the deal——six beers for $24, a bottle of wine for seven.”

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