Encompass Wine

I was interested to read James Laube’s blog on Wine Spectator.com yesterday on the subject of a need for a price correction in the wine market. He makes very valid points that wine prices, like most all else, is determined by supply and demand. With the current downturn in the economy can producers really afford to correct? Land prices in Napa and Sonoma are at a all time high. Fuel prices are driving expenses on everything from delivery to the glass bottle. The “cult” wines will be less affected by all of this. Where a correction will hurt most is for those producers who make an effort to keep prices low in good times or bad. There are many producers in Napa and Sonoma who, given the current state of things, could charge a good deal more for their wines but, for what ever reason, choose not to do so. While the upper end may come down during this slowdown in the economy, those true “value” wines may have to move out of the value category just to survive and that would be a shame.