With the economy swinging like a pendulum on a daily basis, how are wine sales doing? Has the economy put wine on the rocks?

“The consumer has definitely changed buying habits. They are buying wines, which is good for us, but they are being more careful.  People don’t need another $50 Cabernet. What they need is really good wine at $10,” said Wilfred Wong, Cellar Master for the Concord-based chain Beverages & More.

The effect of the economy on the wine industry is said to be a mixed bag at the moment.  A recent study by the Nielsen Co. found that restaurants and bars are seeing a decline in business during these difficult economic times, but the effect on store sales is much less severe. Consumers tend to look for better prices, but they are still purchasing wine.

Nielsen figures from U.S. food, drug, and major market liquor stores also found that 8.3 million cases of wine, a total of approximately $591 million were sold during the four weeks prior to September 20, 2008. Those figures are up almost 3% from the same period a year ago.

“Let’s not forget, the wine’s been rocking. More people are drinking wine; more people are drinking better wine. There’s much more of a demand for high-quality wine than five or 10 years ago,” said Doug Shafer, president of Shafer Vineyards in the Napa Valley.

In my view, as long as wineries continue producing the product; the marketplace will continue to move that product off the shelves. Don’t let the economy put your wine on the rocks.

Cheers!