1979. The year that our founder and CEO, Tom Dorn, opened the first Wine 
Warehouse in Gainesville. As this was the year after the release of the movie 'Animal House,' many people would come up to Tom and ask him whether he realized that he looked like John Belushi. Tom had been the assistant manager at Albertson’s Liquor store and was startled at the premium wines that they were able to sell. The store that he worked at was not the typical Albertson’s Liquor store as it sold an amazing amount of classified growth Bordeaux Chateaus, Estate bottle German wines, and for the time period an enormous amount of French Champagne. Tom’s vision was to take wine to this market without all of the beaurocracy of a large grocery chain. This is how we now have 19 Wine Warehouses in Florida. Tom recalled a 100 case stack of Veuve Clicquot that caused a stir. At the time LVMH was not the brand’s owner and Clicquot was imported by Jack Daniels’ owner, Brown Forman. That 100 case display was said to be the largest Clicquot display in the country. 
Boy, have fashions changed. The most interesting thing about the year 1979 display was the price that the wines were sold at. Clicquot Brut NV was $19.99. Using the handy-dandy CPI calculator, that $19.99 comes to $55.48 in 2006 dollars. Wine Warehouse now sells Veuve Clicquot Brut NV at $34.99 coming in at just under 43% of the CPI increase. For wine drinkers, these are the best of times.
Let me hit you with some knowledge: The CPI is an inflationary indicator that measures the change in the cost of a fixed basket of products and services, including housing, electricity, food, and transportation. The CPI is also called the cost of living index and is published monthly.So what has changed in the US wine market since our first store opened in 1979? After the plateau of the middle 1970s, U.S. wine consumption and production picked up in the late 1970s and 1980s. But, that growth was not sustained, and consumption peaked in the 
middle 1980s at almost 9.20 liters per capita, declining gradually for a decade before moving back up again. This is likely due to the wine cooler consumption being counted towards per capita wine consumption. Anyone remember California Cooler and Bartles and James? Per capita consumption had only reached 7.7 liters per capita again by the end of the 20th Century. People have changed their consumption habits though. Let’s take a look at today’s market in the US.
middle 1980s at almost 9.20 liters per capita, declining gradually for a decade before moving back up again. This is likely due to the wine cooler consumption being counted towards per capita wine consumption. Anyone remember California Cooler and Bartles and James? Per capita consumption had only reached 7.7 liters per capita again by the end of the 20th Century. People have changed their consumption habits though. Let’s take a look at today’s market in the US.Sales in the U.S. of wine grew five percent in 2005 to an estimated 703 million gallons valued at $26 billion at retail. Of the total, table wine amounted to 619 million gallons; dessert wine was 53 million gallons; champagne and sparkling wine, 30 million gallons. I’d say that that’s a bunch of gallons.
How are we drinking differently now than we were in 1979? In terms of sparkling wines, consumption has gone down but people are drinking better quality. In 1980 we consumed 12.5 million cases of fizz in the US and last year that number is just above 12 million cases. The demographics have changed as imported sparkling has gone from 16% of the market to 40% of the sparkling market. The Andre’s of the world have declined and French Champagne has gained market share. In still wines we have the ’60 Minutes phenomenon.’ Red wine consumption has gone from 17% of the market in 1991 to 42% in 2005. White wine has declined slightly from 49% to 41% and Rose/Blush wines have gone from 34% of the market to 17%.
Are we really drinking ‘better’ now? This is a hard question to answer without an explanation of what is ‘better?’ Is better used in terms of higher priced, better quality, or better price to quality ratios? Super premium wines (over $14) are now 12% of the market in volume and 35% of the market in value. Wines over $7 per 750ml are 35% of the volume and are 2/3’s of the value of the US wine market. That just means that 2/3’s of the volume and 1/3 of the value will be under $7.
What do you get for under $7 these days? We have stores that feature a $7 and under section. You would be amazed at the quality wines that fall into this area. One of the crazier deals that we have received lately is on Turner Road. These are fresh wines from the world’s largest wine company, Constellation. The Cabernet has a Paso Robles appellation and there is a Central Coast Chardonnay and a Pinot Grigio. Typically found at $8-9, we have them all at $4.99 ($1.80 in 1979 dollars) with a mail in $30 per case rebate (one per household). There was nothing like this at under $2 back in 1979. Bring on the CPI!
Some end of the year specials:
Turner Road Chardonnay 2005, Retail $8.99 Warehouse $4.99
Turner Road Cabernet Sauvignon 2004, Retail $8.99 Warehouse $4.99
Turner Road Pinot Grigio 2005, Retail $8.99 Warehouse $4.99
Columbia Crest ‘Two Vines’ Merlot, Retail $7.99 Warehouse $4.99
Columbia Crest ‘Two Vine’ Chardonnay, Retail $7.99 Warehouse $4.99
Coppola Bianco ‘Pinot Grigio,’ Retail $9.99 Warehouse $5.99
Coppola Rosso, Retail $9.99 Warehouse $5.99
Georges Duboeuf Beaujolais Village 2005, Retail $7.99 Warehouse $5.99
Geyser Peak Sauvignon Blanc, Retail $10.99 Warehouse $5.95
Geyser Peak Cabernet Sauvignon ‘Alexander Valley,’ Retail $14.99 Warehouse $9.99
And on the Champagne front………………………
Mumm’s Cordon Rouge Brut n/v, Retail $39.99 Warehouse $26.99
Mumm’s Carte Classique Extra Dry n/v, Retail $29.99 Warehouse $24.99
Mumm’s Napa Brut Prestige, Retail $16.99 Warehouse $13.99
How are we drinking differently now than we were in 1979? In terms of sparkling wines, consumption has gone down but people are drinking better quality. In 1980 we consumed 12.5 million cases of fizz in the US and last year that number is just above 12 million cases. The demographics have changed as imported sparkling has gone from 16% of the market to 40% of the sparkling market. The Andre’s of the world have declined and French Champagne has gained market share. In still wines we have the ’60 Minutes phenomenon.’ Red wine consumption has gone from 17% of the market in 1991 to 42% in 2005. White wine has declined slightly from 49% to 41% and Rose/Blush wines have gone from 34% of the market to 17%.
Are we really drinking ‘better’ now? This is a hard question to answer without an explanation of what is ‘better?’ Is better used in terms of higher priced, better quality, or better price to quality ratios? Super premium wines (over $14) are now 12% of the market in volume and 35% of the market in value. Wines over $7 per 750ml are 35% of the volume and are 2/3’s of the value of the US wine market. That just means that 2/3’s of the volume and 1/3 of the value will be under $7.
What do you get for under $7 these days? We have stores that feature a $7 and under section. You would be amazed at the quality wines that fall into this area. One of the crazier deals that we have received lately is on Turner Road. These are fresh wines from the world’s largest wine company, Constellation. The Cabernet has a Paso Robles appellation and there is a Central Coast Chardonnay and a Pinot Grigio. Typically found at $8-9, we have them all at $4.99 ($1.80 in 1979 dollars) with a mail in $30 per case rebate (one per household). There was nothing like this at under $2 back in 1979. Bring on the CPI!
Some end of the year specials:
Turner Road Chardonnay 2005, Retail $8.99 Warehouse $4.99
Turner Road Cabernet Sauvignon 2004, Retail $8.99 Warehouse $4.99
Turner Road Pinot Grigio 2005, Retail $8.99 Warehouse $4.99
Columbia Crest ‘Two Vines’ Merlot, Retail $7.99 Warehouse $4.99
Columbia Crest ‘Two Vine’ Chardonnay, Retail $7.99 Warehouse $4.99
Coppola Bianco ‘Pinot Grigio,’ Retail $9.99 Warehouse $5.99
Coppola Rosso, Retail $9.99 Warehouse $5.99
Georges Duboeuf Beaujolais Village 2005, Retail $7.99 Warehouse $5.99
Geyser Peak Sauvignon Blanc, Retail $10.99 Warehouse $5.95
Geyser Peak Cabernet Sauvignon ‘Alexander Valley,’ Retail $14.99 Warehouse $9.99
And on the Champagne front………………………
Mumm’s Cordon Rouge Brut n/v, Retail $39.99 Warehouse $26.99Mumm’s Carte Classique Extra Dry n/v, Retail $29.99 Warehouse $24.99
Mumm’s Napa Brut Prestige, Retail $16.99 Warehouse $13.99
Moet et Chandon Brut Rose n/v, Retail $44.99 Warehouse $39.99Moet et Chandon ‘White Star’ Extra Dry n/v, Retail $34.99 Warehouse $25.99
Moet et Chandon Nectar Imperial, Retail $39.99 Warehouse $29.99
Perrier Jouet Grand Brut n/v, Retail $39.99 Warehouse $28.99
Pol Roger Brut n/v, Retail $47.99 Warehouse $26.99
Veuve Clicquot Brut n/v, Retail $39.99 Warehouse $34.99
Veuve Clicquot Brut Rose n/v, Retail $59.99 Warehouse $49.99
Veuve Clicquot La Grand Dame 1996, Retail $149.99 Warehouse $109.99
And yes, we do have grower Champagnes:
Check out the many organic and biodynamically farmed producers we have such as:
J Lassale
Tarlant
Bedel
Bruno Michel
Franck Pascal
When I have a chance to work the stores, more and more people are asking if we have grower Champagnes. This is an evolutionary step in Champagne consumption and is highly recommended.
As we are coming to the close of 2006, we would like to thank ‘you’ our customers for your continued patronage. There now seems to be more and more wine concepts opening daily. When you have seen the others we know that you will realize the value that we at the Wine Warehouse bring to the market. This is why we feel that you are really the most tuned-in wine consumers on the planet.
We hope you have a safe and Happy New Year.
Cheers…………..
When I have a chance to work the stores, more and more people are asking if we have grower Champagnes. This is an evolutionary step in Champagne consumption and is highly recommended.
As we are coming to the close of 2006, we would like to thank ‘you’ our customers for your continued patronage. There now seems to be more and more wine concepts opening daily. When you have seen the others we know that you will realize the value that we at the Wine Warehouse bring to the market. This is why we feel that you are really the most tuned-in wine consumers on the planet.
We hope you have a safe and Happy New Year.
Cheers…………..
