Wine economics are like everything else…
Really top-notch quality wine will appreciate and be even higher valued and thus in the long-run will flourish. “Both Christie’s and Sotheby’s, say sales continue to be strong at their auctions, which typically feature excellent bottles in their primes.”
In the meantime, discounters are doing well. “wine exports declined 5 percent in volume terms in the 12 months through the end of February, but the value of those exports fell 16 percent, suggesting cheaper wines are making up more of the mix”
It is the small batch producers who recently tried to expand their production, are over built, and not profitable that will go out of business. The lesson many are learning: carve out a niche where you are #1 whether that is as the low-cost provider or high-end premium services provider.
Across industries almost all are down (March Labor report), but less than in February; while a few sectors seem to be almost recession proof: government and education (Thanks Obama!), health care, and outsourcing to name a few.
CHEERS!
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