Wine Enthusiast Magazine
SubscribeAre You Trading Down… Or Perhaps Across?
by Lauren Buzzeo
Tasting Director Joe Czerwinski posted an excellent blog on Monday regarding the current state of the economy and its impact on the wine retail business and consumer purchasing trends. He notes that we in the wine industry have been inundated with reports that insist consumers are “trading down,” or purchasing lower priced wines than those they were previously allowing themselves to buy. $10 is the new $15, and the more you can find for under $10, the better.
It is certainly understandable that people are cutting back wherever they can to get through these tough times while trying to maintain some level of normalcy and enjoy life’s more simple (or hedonistic) pleasures. After all, at the end of the day, what is it all for if not some fulfillment and relaxation… and what better way to do that than with a delicious glass of wine?
I, along with many Americans, might have found a welcome alternative… beer. With so many options both in domestic craft brews and imports becoming more and more accessible to consumers, it is likely that almost everyone can find something to enjoy at the price point they are looking to spend. I know that I can walk into any liquor store and spend under $10 on a delicious 6-pack. While the opportunities are certainly out there in the wine world, you really have to know your stuff (or bring our buying guide shopping tear out card) to find those rare inexpensive gems, and the likelihood that you will bring home some selections you might not thoroughly enjoy before finding that treasure is far more probable with wine than with beer.
Many industry executives, specializing in both wine and beer, are paying close attention to the marketplace trends. While there have been claims for both industries that they are “recession-proof,” recent sales figures have proved to everyone that is not necessarily the case. However, people are starting to see that beer might have a bit of a leg-up on its grapey cousin. In a recent conference call Robert Sands, CEO of Constellation Brands (and Wine Enthusiast Magazine’s 2008 Man of the Year), noted that the beer business has actually accelerated in general during the economic downturn and that beer sales growth was accelerating due to the recession, while sales of spirits were getting hurt the most.
Brewery founders, presidents, and brewmasters are all chiming in as well, including Gary Fish from Deschutes Brewery and Hugh Sisson from Clipper City Beer who adds, “Even if a sixer of great beer is $12, a comparable bottle of wine is probably $25 to $30… and while we weave and dodge the ‘slings and arrows of outrageous fortune’, I for one, will be waiting for the tide to turn, and while doing so, probably drinking a damn fine beer!” I’m with you, Hugh.
So, have you “traded across” to the mini-luxury that is fine beer since the world turned upside down? I’d love to hear what great recommendations you can give other folks looking to dive in.
Filed under: Beer, Industry Issues
10 Comments
10 Responses to “Are You Trading Down… Or Perhaps Across?”
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January 14th, 2009 at 4:26:27 PM
Lauren,
Very interesting blog. I never consciously thought about it, but yes, my purchases lately have changed given the recent uncertainty of our household budget. Our family budget previously included wine and allowed for the occasional purchase of an expensive bottle of wine, but that is just not an option at this point. So, we have recently delved into the beer world, based on your recommendations. We’ve found some great brews we really enjoy at a much more affordable price than the equivalent quality of wine. However, I have not given up on wine completely…we still buy wine, but we search for the “under $12″ varieties these days (in which case the buying guide is VERY helpful and much appreciated!). I think you make a good point…people will continue to purchase alcoholic beverages, because as you say, what is the point of it all if you can’t unwind with a nice meal and beverage to go with it? I find it particularly therapeutic during such stressful times. I enjoy a nice appropriately-budgeted-for-the-times meal and beverage with my family in order to take the time to be thankful for the little things we do have. I think people will continue to enjoy their beverage of choice, wine or beer, but at prices that more accurately reflect people’s means. Opening the door to the beer world has allowed us to continue to enjoy our family meals, so I don’t feel deprived of that pleasure given the need to tighten our budget. It has been fun as well testing new food pairings as we hone our tastes for different beers!
January 14th, 2009 at 4:27:36 PM
I read this article in the NY Times a few weeks back (http://www.nytimes.com/2009/01/07/dining/07wine.html?scp=1&sq=la%20roja%20amber%20ale&st=cse). Doesn’t really promote the idea of beer as a cheap substitute, but definitely pairs beer as a worthy foe.
January 14th, 2009 at 4:54:19 PM
My suggestion: drink fine Belgian beers! The value for the dollar is very high, and many of these brews, such as the traditional lambic beers like Cantillon Rose de Gambrinus and Drie Fonteinen Oude Kriek, are very similar to some wines.
The pH of some Flemish Oud Bruins (old brown ales) such as Rodenbach Grand Cru are very close to that of wine as well.
Disclaimer: I write for a number of beer magazine about Belgian beer, so perhaps I’m a bit biased.
Cheers,
Chuck Cook
January 18th, 2009 at 12:31:01 PM
Interesting! I have noticed we are looking for the elusive under $10 bottle more and more often these days and recently have starting paying more $ for really good beer. Even at $9 a six pack we are getting a better bargin! I didn’t even realize we had made the unconscious decision until you pointed it out.
January 18th, 2009 at 1:51:12 PM
Cash flow has forced me to look for areas to cut back, and vino is one of them. But being no beer drinker on hot summer days, I’m sticking with wine. The good news is that there is a lot of quite decent wine available in the $10 to $12 range—in whites, quite good sauvignon blancs, and in reds, there are some very good cote du rhones for about $12. And there are plenty of decent zins for about $12. Admittedly, I’d prefer Williamette Valley pinot for about $28/bottle, but until my ship comes in or my financial situation changes, more inexpensive wine will have to do.
January 18th, 2009 at 3:38:49 PM
Great comments, everyone!
Dana – I’m glad to hear that my recommendations as well as our wine buying guide have made libation shopping a bit easier for you. It’s always great to hear people who are excited and having fun with branching out into the beer world… and it seems to me that you’re truly enjoying the experiences and learning. Venture on!
AJ – Great link. We did have a small piece in the Magazine about 6 months ago regarding this “trend” and have no doubt that it will appear in our coverage again soon.
Chuck – Wonderful suggestions! It doesn’t matter that you’re a Belgian beer writer (which, yes, might make you a tad biased); you’re not saying that’s the only way to go… you’re just sharing some very useful information that might help some people make more informed decisions about what to try. That’s always welcome here! Thanks for sharing!
Katie – It’s true, and I don’t think you’re alone in not realizing the trade-offs that have been happening until pointed out. But, for me, it is important for people to acknowledge what’s going on with their shopping habits so they can try and become more educated about the products they’re beginning to enjoy. Because essentially, whether it’s wine, spirits, or beer, that’s what I and all of us here at WE Mag are all about… information for those who seek it!
Mojave Ed – More power to you! Believe me, I am not one to fault you for staying 100% true to the vino… and if I didn’t enjoy my brews, perhaps I’d be in the same ship as you. But, for so many others who do enjoy the taste of good beer, it’s interesting to discuss how the times have pushed us even further into the sudsy world.
Keep the comments coming, gang! I’d love to hear more suggestions and great brews you’ve found that meet your budget.
January 19th, 2009 at 9:53:47 PM
Great Article. One thing people don’t typically focus on that really sets beer apart is packaging. Well 12 ounces doesn’t exactly get me out bed in the morning, local liquor stores – starting to educate consumers on stepping outside of mass marketed light lager – are allowinng consumers to “mix-a-six”. It’s a great tool for the novice beer drinker to get into some “training wheels” or “bridge beers” to help develop thier pallet. Fitting 6 12oz world class beers into an empty six pack is slightly easier and more cost effective than putting 6 750ml world class wines in a case.
It’s also exciting to see beer gaining on wine in the market http://tinyurl.com/56q7bt.
January 22nd, 2009 at 10:09:08 PM
Good article. I’m a beer guy but I also enjoy wine but these days I can’t afford a good enough bottle for my taste. Chuck had a great suggestion about the Belgian beers. Some lambics are definately close to wine in charecter and Belgian Ales would be a good introduction to good beer for Wine drinkers who are used to corporate American lagers. But there is so much out there to explore. I encourage you all to give beer a better look.
Cheers!
February 17th, 2009 at 3:33:14 PM
Wine drinkers are more open to Belgian beers than beer drinkers. That’s why wine wholesalers distribute them. But, you’ve been smoking something if you think someone who wants wine will try a beer because of price. $20 a bottle wine drinkers don’t trade down to Belgian beer, they trade down to excellent $8 bottles of wine. They are just like drinkers of $12 a six pack craft brews who trade down to $7 six pack beer. Just like most people who are watching their money, will think that paying $8 for a bottle of lambic is not getting value for their dollar.
December 30th, 2009 at 8:22:42 AM
[...] veterans like Daniel Boulud, Danny Meyer and Michael Hyunh took advantage. Great opportunities for craft beer began, as people tightened the grip on their wallets, less willing to splurge on nice wine. [...]