
According to an
article in the LA Times, two recent studies indicate that California winemakers are not competing
successfully with foreign competitors. The Wine Market Council's study found that American consumers prefer
foreign wines primarily for taste and price, calling out specifically, Italian wines for taste and quality, and
Australian wines for better value. The second study is from Merrril Lynch found that American wines are slowly but
surely losing market share to these foreign competitors in markets. The kicker is that overall wine consumption per
capita in the US has increased.
So what's the explanation?
Overall growth in the wine market is coming from increased consumption by young adults, and the article suggests
that California winemakers are not paying attention to this market as well as their overseas competitors are. Foreign
wines are offering a wider range of price points, which means more wines that are sold at lower prices. And unlike the
American wines, these lower-priced imports taste good.
Another point the article brings up is the slicker, "hipper" marketing from wines like Yellow Tail (Australia). I don't think I've ever tried wine from Yellow Tail,
but I have to admit, I did give in to a shiny monkey.