Wine Prices Inch Back Up
on 27/08/12 at 11:16 amWine
They can partly blame themselves. Feeling slightly more confident about the economy, wine drinkers who traded down from mid-priced varietals during the recession are increasingly willing to pay $20 or more per bottle, according to a new report by Moody’s Analytics.
North Coast wineries, in turn, are slowly raising prices. Wine prices increased in July for the first time in 31 months, climbing 0.3 percent compared to a year ago, Moody’s reported.
The uptick in prices signals a welcome change for Sonoma County, which relies heavily on wine for its economic vitality, economists said.
“Wine is our calling card,” said Ben Stone, executive director of the Sonoma County Economic Development Board. “It’s what makes our tourism thrive, and it adds to the aura of the area for recruiting employees and companies … so it’s great that things are looking better.”
Mother Nature is also partly to blame for prices in the wine aisle. After two short harvests in Northern California’s Wine Country, there are fewer bottles of wine to go around. Growers, in turn, have been raising prices for their grapes. In Sonoma County, grape prices rose 4 percent last year, according to Moody’s, adding to the pricing pressure.
“There’s no question that discounts have been reduced, as the wine supply has really tightened overall,” said Jon Fredrikson, president of Gomberg, Fredrikson & Associates, a wine industry consulting firm based in Woodside.