OMG the stock market is still crashing! Whither wine – redux!
Back in January, we ran a poll after a rough patch in the markets asking about how a downturn would affect your wine purchases. Ah, what a different era that seems! Everyone was saying that the economy was fundamentally sound (oh wait, for some that was also just a few weeks ago), we barely knew a sub-prime mortgage from a prime one, and billions of dollars had not yet been pumped into non-vinous liquidity.
How will all this financial turmoil affect your wine consumption? Let’s run the same poll now that we did back then and see if attitudes have changed. If only I could make this poll scientific then I could sell it to Gallup. Hit the comments if you have further, more nuanced thoughts. Or hot stock tips.
poll now closed
Sep
29
2008
On September 29th, 2008 at 11:27 pm ,jim wrote:
You missed the last option. Sell any remaining shares and wait for the auctions that will occur as the Wall Street “gurus” sell their designer wine collections (that they dont drink but just look at in their fake medieval wine cellar) to pay the mortgage
On September 30th, 2008 at 11:31 am ,Dave S. wrote:
I’ve always had a wine budget. The trick in the past was sticking to that budget and I would often go over for that “special – once in a lifetime” sale.
Those days are over and I now stick to it, never gpoing over and most times coming under.
I combine this with looking for the best QPR values I find, cutting the average bottle price.
I guess that’s a combo of the 2nd and 3rd choice.
On September 30th, 2008 at 11:43 am ,Doug Cook wrote:
I was about to click on a survey response, then realized that I’d just be screwing up the data. It hasn’t affected my purchases, mainly because I stopped buying a couple of years ago to save money when I started a self-financed business… I’ve been slowly drinking my way through the cellar since (though there’s still plenty there).
I seem to recall that historically alcohol consumption increases during financial downturns? (although the complex interrelationship of the Great Depression and the repeal of Prohibition make it pretty hard to draw any conclusions about economic cause and effect in that case, I suppose, and certainly “alcohol” in that case wasn’t luxury wine). And the dynamics of wine consumption in the US have changed dramatically in recent decades. So I imagine it will be difficult to generalize from the past.
And who knows, now that wine seems to hold a certain esteem in investment communities, given that it is a concrete commodity, perhaps more people will purchase it as a “downturn-resistant” investment. Some auction houses have trumpeted recent sales results as evidence of this, but I suspect it is too early to tell.
It is a fascinating topic and it will be interesting to see what happens.
On September 30th, 2008 at 1:24 pm ,Oscar Quevedo wrote:
I think now is a good moment to buy stocks but not a good moment to buy wines.
The stock market is anticipating a heavy recession in the economy, which I think will not come. However, private consumption will be affected and the monthly budget spent in wines will probably be reduced, forcing the wineries and distributors to reduce prices. People will move from $20 to $15 a bottle or from $10 to $7.
Also the icon wines, that in the past years have been reaching astonishing prices, will probably be stocked for a larger period. Crisis hurts everyone but the bullish investor.
On September 30th, 2008 at 2:15 pm ,Katie wrote:
We are buying more of our $6-$8 favorites instead of our $12-$15 favorites. We still buy those, just fewer bottles.
On September 30th, 2008 at 2:17 pm ,Weston wrote:
hopfully 2005 Bordeax will come down in price
On September 30th, 2008 at 4:40 pm ,South African Wine Lover wrote:
As an importer for South African wine I can say from experience that as the economy has become more sluggish our numbers are getting better and better. Between a strong exchange rate making it exceptionally favorable to bring wine in from S. Africa and an extremely high QPR we are having our best year ever. It seems we have found something resembling a silver lining.
One other interesting note. Our case quantities are way up while our $’s are up, but at a much lower rate, indicating – as was my response to the survey – that people are drinking as much (or more) but spending less per bottle.
On September 30th, 2008 at 8:51 pm ,Dylan wrote:
I wouldn’t be as rash to cut wine from my life altogether. There are other options for people: lose the coffee, lose gum, lose the morning paper and read online, cook your food instead of eating out= you’ll be drinking up again with those savings in no time.
On October 1st, 2008 at 5:34 am ,Golly wrote:
I knew the situation was bad this week when I got an email from Berry Bros & Rudd advertising their Outlet store. The fund managers and venture capitalists of St James’ in London must have seriously cut back on their fine wine habits.
On October 1st, 2008 at 4:12 pm ,aditya wrote:
Very interesting …. It seems that the wine world in marching along oblivious to the crisis around it.
http://www.slate.com/id/2201323/?from=rss
On January 26th, 2009 at 10:25 am ,Trading down: recession and wine trends [poll] | Dr Vino's wine blog wrote:
[…] last checked in with you about your buying habits on September 29. Lots has happened in the economy since then. Tell us how your wine buying and consumption is now! […]
On January 27th, 2009 at 1:04 pm ,Rob wrote:
I’ve increased buying wine to lay down for 5-10 years out. Not only are prices reasonable but I’ve found some fantastic deals on limited availability wines.