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The year 2007 marked the fourteenth straight year of growth in the US wine market. The adult per head consumption of 3.02 gallons (12 litres) is at an historic high, with 269m cases consumed.
The gains since 2000 have been led by Millennial drinkers, young adults of 30 and under who have taken to wine in a major way. These consumers are eager for new taste experiences in wine and are also a key reason that the market for imported wines has grown to over 30%. The ‘Millennial kids’ are not only drinking wine, they are also pushing the cocktail boom.
The market is fiercely competitive, with the top three wine companies—headed by Gallo, Wine Group and Constellation—shipping 82% of all wine. That leaves about 5,500 other wineries to fight for the scraps. For small producers, distribution is tough, with the 10 largest distributors controlling 90% of the market. This has led to greater interest in direct marketing to consumers through the Internet, as well as to the growth of wine clubs and direct sales to local outlets.
Competition is likely to become even more intense as the country moves toward being the world’s largest wine market. Even the weakness of the dollar has not slowed the growth of imports. Of course, if the economy continues to slow, all bets are off. There are already reports of a slowdown in sales of super-premium wines and new interest in the under $8-a-bottle (€5) market.
Best supermarket retailer
At one time, American supermarkets were true wine dinosaurs. They offered cheap jug wines and national brands aimed at the housewife who wouldn’t spend more than $5 on a bottle of wine. That began changing with the wine boom of the 1980s. Now, supermarkets from coast to coast are in the thick of the fine wine trade, as well as the ‘any Wednesday’ kind of wines. Safeway, as one example, has wine stewards in over 140 of their stores. Outlets in wine producing areas often feature a selection of regional wines.
Whole Foods Market, a national chain and specialists in organic food, easily led the field. Whole Foods has a balanced selection of mostly mid-priced wines, both domestic and imported; most, but not all, are made from organically grown grapes. Safeway, the runner up, has a wider selection at all price ranges, but, some thought, lacks the focus of Whole Foods.
Best wine retailer, east coast
In the past, the retail trade on the east coast leaned heavily on imports. This is no longer the case. Californian wines get good play, as do other New World bottlings, especially Argentina. The winner in our survey was Sherry-Lehman, a Manhattan icon founded in 1934, with importer Bartholomew Broadbent citing the store’s “superb selection and personal service”. Sherry-Lehman also does an extensive mail order business through its annual catalogue. The runner-up was Peter Morrell.
Best wine retailer, west |
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coast
The time when west coast shops were all about local wines are long gone. Not that they have abandoned their roots, far from it, but as imports’ share of the market has grown, west coast shops have expanded their selections. This was a lively contest with several strong entries. K&L Wine & Spirits, a family-owned mini-chain, with stores in Hollywood, San Francisco and Redwood City, was the poll’s choice. The selection of both domestic and imports is wide and deep at all price levels. Rob Griffin, director of imports with Wine Warehouse, summed up K&L: “They are the smartest operators and have a wonderful staff.” Tightly bunched in the runner-up spots were Beverages & More!, a chain operating chiefly in the west, Hi Times, a much respected southern California shop, and The Jug Shop, a San Francisco store noted for their Australian selection.
Best importer
There were a few surprises in this category. First, it didn’t split along east-west lines as had been expected and, second, the winning vote went to a specialist California importer. There could be an important message there in both cases: as far as imports go, the US is a more singular market than thought and it doesn’t work all that well to try to cover the globe: it is a time of niche markets in wine.
Kermit Lynch Wine Merchants carried the vote. This small California firm imports almost exclusively Burgundies, Rhônes and southern French wines, with a handful of Alsatian and Bordeaux and a token showing of Italian. Lynch has a devoted, almost cultish following with nationwide appeal. His monthly newsletters are eagerly read from cover-to-cover – and his rants against ‘Parker-Spectator’ and the 100-point rating system are legendary. His wines are especially popular in restaurants.
Best Internet retailer
This is a fascinating category and one to watch. After a number of false starts in the 1990s, it is becoming an important factor in wine sales – and as restrictions on direct-to-consumer shipments are lifted, it will become even more so. Recent surveys indicate that wine consumers are open to shopping on line, either direct from a winery or from an online shop. Established in 1998, wine.com was the hands-down winner from a fairly wide field. Reasons cited included wide its selection and focus, such as the line of 90-point-plus wines offered at under $20.
Best wholesaler
Many people in the wine business see wholesalers as a major problem in getting wine to the consumers. A few large wholesalers dominate the system and they tend to pay more attention to the large producers, regardless of quality.
Not many wanted to name a ‘best’ wholesaler, but the west coast Henry Wine Group garnered the most votes for having the ‘best educated’ staff. It is fairly small, so perhaps they are just trying harder. It was |
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especially interesting that not a single vote was cast for Southern Wine & Spirits of America, far and away the largest US wholesaler. Founded in Florida in 1968, Southern now operates in 28 states with sales of over $7bn. It controls in excess of 20% of the US wine and spirits market by dollar.
Best wine buyer
The voting was widely scattered and there were surprisingly few votes for the mammoth national chain buyers. Although Annette Alvarez of Costco was mentioned, as was Mary Melton, the wine buyer for the PF Chang’s restaurant chain, the winner was Bill Hayes, the senior wine buyer for this 75-store-plus chain Beverages & More!. He has a reputation for presenting a well-balanced selection from around the world. Willing to take some risks, he challenges BevMo customers and is especially strong on good value wines. He also gives individual store buyers the opportunity to showcase regional sets.
Best restaurant wine list
There was no clear favorite in this category and it’s easy to see why. There are an astonishing number of good wine lists across the country as an explosion of young wine buyers and sommeliers create adventuresome new lists. Top accolades went to Gary Danko in San Francisco for its incredible depth, with virtually every wine-growing region on the planet represented. As an example, there are more than 100 Champagnes on the list. While most restaurants would be happy to have one sommelier, Gary Danko has a team of three, plus a cellar master. Serious geeks should check out the list on the website before going to the restaurant.
Best Sommelier
Again, sommeliers from across US figured in the voting, but it is, frankly, a title that doesn’t always mean a lot. There are men and women called sommeliers who got the title because they are adroit at using a corkscrew. Also, in many restaurants, the wait staff plays a key role in wine choice. Having said that, there are an amazing number of young sommeliers who know their wines - and how to match them with food.
Rob Bigelow MS from Bellagio in Las Vegas took top honors. Bellagio is a modern phenomenon. It isn’t a single restaurant, but a collection of restaurants, plus an event center and other assorted Vegas glitz. It’s the kind of place that could be a joke, but works. Bigelow leads a staff of 18 sommeliers, including four master sommeliers. There are 5,250 wines offered at six different restaurants, including 250 by the glass. The numbers don’t tell the whole story. Bigelow is credited with keeping firm control of the list and giving priority to matching food and wine.
Best Public Relations Firm
There were scattered votes for smaller regional agencies, but the consensus was to ‘go national’ to get the best wine exposure, which is why Cornerstone Communications in New York took the cake. Cornerstone specializes in wine, spirits, luxury goods and travel. |
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They have developed “excellent access to wine media. They are big enough to provide lots of service and small enough to give personal attention,” according to Steve Burns, a marketing consultant based in California. Clients include a number of promotional campaigns, such as Wines of Alta Adige as well as small producers like Artesa of Napa and larger like Montes of Chile.
Best wine competition
The voting was split several ways on this important category. Even though some critics debunk competitions, and there are certainly competitions with unqualified judges, a gold medal means more sales. There were a few votes for competitions outside the country, but the winner was San Francisco International Wine Competition, run by respected wine journalist Anthony Dias Blue and cited for its lineup of judges. The competition marks its twenty-eighth anniversary this year; Last year over 4,000 wines were entered from 27 states and 21 countries.
Best wine journalist
This was a landslide for Jancis Robinson, cited again and again for her “integrity as well as her willingness to listen.” Michaela Rodeno, CEO of St. Supery Winery in Napa, said, “She is knowledgeable, erudite, has a sense of humor and can be provocative.”
Most influential person
Although this was probably the most predictable category, the most interesting answer came from John Gillespie, head of the Wine Marketing Council, who wrote, “The most influential person is the US wine consumer. They are increasingly sophisticated and not nearly as swayed by critics as in the past - a whole new generation of curious and independent minded wine lovers.”
That said, the winner was Robert Parker. Parker and Marvin Shanken dominated the voting, with Parker having a slight edge. Although some commented that Parker had too much influence, others said his recommendations were “consistent and thoughtful.” There were several votes for Mel Dick, senior vice president of Southern Wine & Spirits of America, and president of the company's wine division, a tribute to that wholesaler’s immense power.
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