State's wine-grape growers pinched
Washington wine-grape growers and those who do business with them say they remain optimistic about growth prospects but admit they're starting...
KENNEWICK — Washington wine-grape growers and those who do business with them say they remain optimistic about growth prospects but admit they're starting to feel the pinch of the recession.
Some consumers are buying less expensive bottles of wine, and wineries are working harder to contain costs, those at the annual convention of the Washington Association of Wine Grape Growers said.
"We've definitely seen a slowdown in the last four months," said Marty Clubb, owner and managing winemaker for L'Ecole No. 41 near Walla Walla.
Consumers are buying bottles instead of cases, and restaurant wine sales seem to be lagging, Clubb said.
Still, retail sales are holding on and Washington wines continue to be well-priced in the market, he added.
Keith Love, vice president for communications and corporate affairs for Ste. Michelle Wine Estates, of Woodinville, said Ste. Michelle is proceeding with a five-year plan for planting more vineyards.
"You have to look down the road," he said. "You can't hit the panic button."
The company considers its $10-range Red Diamond brand a sales barometer, and it's doing well nationwide, he said. "We know there's going to be an impact ... but we think the state industry will ride it out."
Restaurant sales are likely "going to be where you see the big drop-off," Love said.