U.S. WINE DRINKERS: A FICKLE BREED

Jim Wasserman of The Sacramento Bee reported that for U.S. consumers, California wines still resonate more “familiarity and favorability” as compared to Italy, France, Australia, Oregon, Washington and New York. Eight out of ten wine drinkers in the U.S. greatly enjoy California wines, and 3 out of 4 believe they are getting “good value for the money.” However, a new marketing survey suggests that “California vintners can defend their sizable lead by linking themselves to powerful, favorable images of the state” such as California’s well-known beauty and laid-back lifestyle. "California is well-positioned now, and that's a good thing," said Peter Rose, partner with North Carolina based market researcher Yankelovich Inc. "But we want to be sure California doesn't become the hare to the tortoise of the rest of the world."

And although Americans still prefer California’s vineyards, increasing competition comes from Old World wines and other New World products such as wines from Australia. California has gone down 8% in the past ten years even though it accounts for 67% of wine consumed nationally. Looking towards female consumers as well as the new group of wine drinkers in their 20s may be an effective strategy to combat competition. "We're trying to say you don't have to go to Australia to have an adventure. You can go to Santa Barbara," said Barbara Insel, managing director for St. Helena-based MKF Research LLC.