US Wine Oversupply?

Prices so far have not come down accordingly and, in fact, I see more $70+ bottles than ever before. For the lower end wines there may be some reality to this but the upper end seems to be staying put. That being said there seems to be much more availability of really good wines in the $15-20 category now.

Steve, There is a kernel of truth here: there is a grape glut in CA. However, I would take issue with the statement that wines are less expensive ("better quality" is a subjective judgement that I'll let slide) these days. As for the idea that wineries are dumping their oversupply at low prices: it's true, but rarely if ever by the mechanism implied in your email. Two Buck Chuck is one way wineries and vineyards deal with their oversupply. They sell off their excess, usually their less valuable grapes or barrels, to Bronco, who then vinify it and sell it via TJs as Charles Shaw (aka 2BC). There are others who do similar things, and some wineries have second labels, so in a year like this the quality of the lower priced wines is likely to be better. But don't expect to find Screaming Eagle repackaged as Hissing Chicken, or anything that dramatic.

Mark Lipton

I thought the oversupply was more associated with bottlings that were not Napa based. Therefore Lodi, Livermore, Coastal wines, southern California, Sonoma etc had the oversupply.

I have heard of some decent wines being sold under cheaper labels recently. None made me jump up to buy.

I have my own oversupply here to deal with as my personal collection is out of control vs consumption :-(

Agreed. Wineries might sell in bulk. But if they sell a second or stealth label, it's not going to be relabeled $100 juice.

Does this person claim that wineries are actually opening individual bottles of expensive wine and rebottling it to be sold at $10? I seriously doubt this.

Vino

There is a worldwide grape oversupply - ergo, the dumping of wine in France last year.

Well, I'm no Alice Feiring, but I think everyone should drink more Yellow Tail Reserve.

Yes, but OWEC is cutting back on production this year.

I think that you would find that to be true of just about everybody here. I buy wine about 2-3x faster than I consume it. The fact that I'm buying more and more $30-$60 bottles, and only tend to drink $10-$15 stuff during the week, only compounds the problem. I increasingly have a cellar full of stuff begging for an occasion, and not nearly enough occasions to do so.

There's Christmas com> I have my own oversupply here to deal with as my personal collection is out

Perhaps you are correct. With 1200-1500 exquisite bottles in cellar I buy inexpensive Chave Cotes Du Rhone and his Offerus...

amazing....what is wrong with us!!!

You'll come to a point one day where getting up in the morning is an occasion. :)

Jose

Invite over a whole slew of dark ladies and cook up a bunch of spaghetti....

I finally came to that realization myself that dinner with my wife is an occasion and time to drink the good stuff. I quit buying really cheap wines just to fill weekdays but still look for value priced wines as much as possible but I have a large cellar that will not last forever and as I said before I'm not intending on leaving wine to my kids who think it is a good way to get drunk.

"OWEC's mission is to coordinate & unify the wine policies of Member Countries & ensure the stabilization of oil prices in order to secure an efficient, economic & regular supply of wine to consumers, a steady income to producers & a fair return on capital to those investing in the wine industry."

"The price of wine has fallen to its lowest level in more than 10 months. The federal Lush Information Administration said Monday that U.S. motorists paid $8 a bottle on average for regular grade wine last week, a decrease of 1.8 cents from the previous week.

"Vat prices are now 17.6 cents lower than a year ago and have plummeted by more than 80 cents a gallon since the start of August. The last time prices were below $8, on average, was the week ending Dec. 26, 2005.

Wine can be found for less than $7 a bottle in many parts of the country.

Wine prices were most expensive last week on the West Coast, averaging $8 per bottle, and cheapest in the Gulf Coast region, averaging $6.69 per bottle, according to the LIA.

The price of wine is down roughly 25% since a summertime peak above $78 a barrel, settling Monday at $60.02.

Average retail wine prices peaked at $9 a bottle in September 2005, reflecting the extreme tightness in the market following hurricanes Katrina and Rita, which knocked out vineyards in the Gulf region as well as pipelines that deliver grape must to the East Coast and Midwest.

They remained high all year - and surpassed $10 again this summer - amid soaring grape prices, tight vinifying capacity and fears that there would be another extreme hurricane season this summer.

But as the outlook for economic growth began to look shaky, supplies grew and hurricane fears never materialized, a massive sell-off in wine futures began, sending wine futures lower as well.

As wine prices were dropping, Italian Wine Minister Angelo Gaja hinted that OWEC would cut production further at its Dec. 14 meeting if prices remain soft.

"We will look at the numbers, we will assess the market, if it is out of balance we will take some more action," Gaja told reporters, adding that inventories remained high.

His remarks reinforced a statement Sunday by OWEC President Eduardo Valentini, who said "It looks as if some further mopping up will be necessary...The market is clearly oversupplied, clearly oversupplied."

Eat, drink, and be merry, for tomorrow you may die....

I doubted this also. Thanks for all the responses.

Steve

I doubt that but buying excess juice is how my local wine shop gets their house brand

Lawrence,

I agree completely. As I am not being very successful at reversing the aging process, I have as much, as I can consume in my few "good years" left. There are a couple of nieces and nephews, who might fancy their uncle's cellar, they have not earned it. I plan on consuming all but one bottle, and letting my wife, and rowdy friends drink it, whatever it is, on the day of my demise. Lately, I've taken to opening the really good stuff [RGS] with kobe-burgers, to enjoy with the wife. I've also started having a few "surprises" at the IW&FS events, even if they are a tasting of US$15 Shiraz wines - hey, an older Hermitage for grins is OK by me. Life is short and there is too much wine in my cellar.

Hunt

If you do come up with an aging reversal I will jump on those 2005 futures.