The Emperor has No Clothes

Earlier this week the San Francisco Chronicle suggested that in the Napa Valley, "2010 may be a vintage year for foreclosures as the wine industry is squeezed by falling land values and a consumer shift to cheaper brands."

Napa land values have fallen 15 per cent from their 2007 peak and distressed sales or foreclosures are expected. According to the Silicon Valley Bank (big lenders to the wine business), in a survey of vintners, seven per cent called their finances "very weak" or "on life support," and "over 250 wineries are calling it the worst downturn in 20 years."

More telling is the notion that some sort of "secular change" has hit the business. Consumption in 2009 went up but dollar sales fell for the first time since 1991. When it comes to understanding what happened to wine, the language of wine marketers is as revealing as the results. Sales of ultra-premium wines -- those over $30 -- have fallen 15 per cent. Now, doesn't "ultra-premium" sound like an excessive name tag for a $35 wine? Maybe, until you consider that sales of super-premium wine -- bottles over $15 -- fell 10 per cent in 2009. Calling modestly priced wines super-premium illustrates the desperate nature of marketers and their lack of respect for consumers. Therein lays the dilemma for wine producers.

Forty years of inflation and hyperbole, be it in price or words, have left the emperor with no clothes. The fortunate few who could afford $750 bottles of wine now know what most regular consumers always knew -- namely, that price has little relationship to value in the modern wine industry. The problem for many latecomers is business models were built, vineyards were purchased and wines were made to service that fairy-tale market. Now, it is all coming apart, which is why regular wine drinkers should be ecstatic.

If there is a dark side to falling prices, it is the over-reaction of retailers to list the cheapest wines they can find. English supermarkets are bulk-bottling New Zealand sauvignon blanc in London and selling it for next to nothing under their own brand name. We don't need any more cheap wine at the bottom end. The trick is to reshape the sweet zone between $15 and $35.

Why not take advantage of falling prices and the coming readjustment in the wine world and start seeking out Napa Valley, Sonoma Valley or Western Australia wines at drastically reduced prices? That goes ditto for Bordeaux and Burgundy and, yes, even British Columbia wine.

This week we look at six new wines featured in BC Liquor Stores under their new product introduction program. Most sell for around $15, which more or less illustrates my point that we may not be taking advantage of the recession to rebuild the portfolio at the top end.

The James Oatley Tic Tok Pinot Grigio 2009 comes with a hint of colour that reassures its gris roots. Expect a fresh northern Italian style that is food-friendly.

A second label from the folks at Konrad and Co is labelled Mount Fishtail Sauvignon Blanc 2009. Bright gooseberry, nettle and light jalapeno notes preview a fresh and elegant sauvignon with a slightly sweet palate of green apple and passion fruit.

Domaine La Croix Belle Caringole 2008 contains syrah, carignan and merlot from the Languedoc. The entry is fresh, the palate supple with black olive, herbal and mineral, cherry, meaty flavours.

The Bear Flag Red Wine Blend #1 N/ V, a candied mix of zinfandel, petite sirah and charbono, has a soft, warm, sweet palate with chocolate, cherry, mocha, pepper and dried herb flavours.

Next up is a simple, affordable Canti Estate Barbera d'Asti Superiore 2006 from Piedmont, Italy. Expect a dry palate with smoky, meaty, cran-cherry, dried herb flavours.

Despite its sexy Douro appellation the Porca de Murcia 2007 remains a simple unpretentious, everyday red wine. The nose is a mix of earthy, licorice, pepper and black cherry aromas, and the palate slightly tart with more earthy, tobacco, ash, and floral, meaty cherry flavours. A mid-week barbecue wine.

Remarks: Food friendly, fresh, northern Italian style.

Mount Fishtail Sauvignon Blanc 2009, Marlborough, South Island, New Zealand

Price: $15

UPC: 009421004799041

Score: 86/100

Remarks: Slightly sweet palate of green apple and passion fruit flavours.

Domaine La Croix Belle Caringole, Vins de Pays des Cotes de Thongue, Languedoc, France

Price: $15

UPC: 003413870000099

Score: 84/100

Remarks: Simple workhorse red suited to cassoulets and stews.

Bear Flag Red Wine Blend #1 Zinfandel -- Petite Sirah -- Charbono N/V, California

Price: $13

UPC: 085000016848

Score: 82/100

Remarks: Soft, sweet, red wine with few redeeming qualities.

Canti Estate Barbera d'Asti Superiore 2006, Piedmont, Italy

Price: $15

UPC: 008005415000005

Score: 85/100

Remarks: Fresh and supple with smoky, meaty, tobacco and dried herb flavours.

Porca de Murcia 2007, Douro Valley, Portugal

Price: $13

UPC: 005601109211127

Score: 84/100

Remarks: Simple, basic, mid-week barbecue wine.