The recession: Wine industry not immune

The recession stinks. There, I said it.
 
There's no question that the current state of the global economy has affected all sectors including the wine industry. Even those with the means to buy are holding out for bargains. Consumers are changing buying habits, seeking everyday wines at lower prices, eating out less and splurging on expensive wines less often. As a result the wine industry is scrambling to hold on to market share.
 
Signs of the times
Global wine consumption fell nearly 1% in 2008 according to the Global Drinks Market Impact Database. However, consumption in the US was up for the 15th consecutive year, albeit by only 1.5%.

Wine sales in the US fell to $30 billion in 2008 from $30.4 billion in 2007 according to a study commissioned by the Wine Institute. This was the first fall in sales since 1993. The same study reported US Restaurant wine sales by volume fell 10% in 2008, a result of people eating out less.

US wine and spirits firm Brown-Forman is cutting 6% of its global workforce as a result of the economic downturn. About 250 jobs mostly in Mexico & the US are at risk. Brown-Forman owns California wine brands Sonoma-Cutrer & Bonterra, among others.
On the bright side...

If you read my article on Bordeaux En Primeur  you're aware of the speculation and hand-wringing over 2008 Bordeaux wine prices. The first producer to release their 2008 futures price was Ch. Angelus. At $50 Euro per botte (about $65 US at the time of this writing) it's 40% less than the 2007 release price. More chateaux are expected to follow with their own reduced pricing.
 
In Australia some wineries are cutting prices to the point of selling below cost to move inventory. I saw the latest Banrock Station Chardonnay recently for $4.99. $4.99! Granted it's not the greatest wine in the world but think about it: the wine is shipped over from Australia, marked up at least twice (once by the importer/distributor and again by the retailer) and it's *still* only $4.99.
 
Amazing days are afoot, my wine-loving friends. Watch this space for upcoming articles on recession value picks.