Biz Buzz: Wine sales down in restaurants

A shift in consumer spending patterns could spell trouble for wine industry, firm says
 
tool goes here A fundamental shift in consumer shopping and eating patterns blamed on the recession is hurting wine sales in restaurants in San Luis Obispo County and nationwide, according to a recent report by New York research firm The Nielsen Co.

More than 56 percent of consumers surveyed said they are trimming discretionary spending such as dining out and other out-of-home entertainment, said John Pauley, Nielsen’s new business development director. He presented the data at a Paso Robles Wine Country Alliance meeting to about 150 members this week.

Trends through June show wine sales in restaurants are down by more than 9 percent — and that was before the stock market crashed earlier this fall, Pauley said.

 Wine consumers have shifted instead to drinking at home and looking for value sales in the retail market, including more visits to Wal-Mart, Costco and dollar stores and fewer visits to specialty retailers such as Trader Joe’s and Whole Foods Markets, the survey found.

With a weak 2009 and more restaurant and retail closures and bankruptcies anticipated, more people are expected to focus on their basic needs rather than buy luxuries, according to the Nielsen data.

The loss of the Baby Boomer generation’s retirement savings in the stock market could also have negative repercussions in wine sales, particularly on the higher end, Pauley said.

However, wine is still holding its own in most grocery and liquor store sales, and wine imports are going down, according to the survey.

While sales may be slowing, the Paso Robles wine industry— which represents about a half percent of the national market — is still growing, Pauley said.

“Pinot noir is outperforming them all,” he added.

The Nielsen data comes in what has been a tough year for North County grape growers, some who are showing a 50 percent drop in harvest because of weather damage, said Paso Robles Wine Country Alliance Board Chairman Steve Lohr.

To offset any downturn, Lohr advised the membership to “keep telling our story.”

A Nielsen study of revenue growth five years after the early 1980s recession, for example, showed that the companies advertising aggressively in that downturn grew 250 percent faster than companies that cut marketing efforts during tough times, Pauley said.

—Melanie Cleveland

Jeweler reopens at downtown SLO location

Adrian Bray of Noor Jewelers has reopened his boutique jewelry store at 850 Higuera St., in downtown San Luis Obispo, formerly the location of Jorgensen Jewelers.

The larger shop will allow for better displays and a wider variety of products than the former location of 1108 Broad St. It is also on what is considered the city’s main downtown artery, Bray said.

Bray is also hosting an all-day “New Location Celebration” today at his store, with refreshments being served.

“In addition to our new location we are also celebrating our third holiday season in business, so there’s a lot to be thankful for.” Bray said.

—Melanie Cleveland