The recession hasn’t stopped people from popping the cork off a bottle of Shiraz or Chardonnay. The so-called banker cultivars (wine styles) and the established value wine brands are still popular among wine consumers.

But many budget-conscious imbibers are shopping for wine more carefully, just as they are for groceries or clothes.

In general, retail sales of wine and other alcohol have gone up. Booze, it turns out, is somewhat recession-proof.

“We still kind of put it in the category of an affordable indulgence,” said Danny Brager, a vice president at research firm Nielsen Co. Also, people opting to stay home rather than go out to restaurants or bars are buying wine for dinner or other at-home gatherings.

But like a fine bottle of Bordeaux, the story of wine sales in a recession can be complex for the merchants who sell it.

People are buying more from supermarkets and big chains, retail surveys show, while spending less at bars and restaurants. Smaller, independent wine shops, which tend to focus on more expensive varieties, have struggled as buyers cut back on splurging.

This trend will probably be true in the South African wine market. National retailers are dominating the wine sales and consumers are moving towards buying there wine with their groceries.

I would say that consumers are more price sensitive and cultivar (brand) loyal as the recession hits. Consumers are more afraid to make a “wrong” choice which implies that they are reluctant to experiment with new brands or wine styles.

Source: dallasnews.com