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How the Wine Industry is Weathering the Recession

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    Alyssa Rapp of Bottlenotes gives her outlook for the wine industry.

  • Duration 3:04
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What -- -- -- get out of the super involved.

I got it I'm -- -- -- want.

The recession left Americans with much less money in their wallets in out of payroll tax take has let them with smaller paychecks.

-- -- wind industry adapting to customers who just have less money to spend joining us now listen -- founder -- CEO -- bottom notes.

And online media coming -- focuses on line of course wine expert extraordinaire herself let's talk first about this com.

Lawrence of events that's all coming together and 2013.

Well thanks for having me back Tracy and Robert Millen from Silicon Valley bank's one division says.

The outlook is still good for the California US one industry but it's not going to be green 2013 because the confluence events that you're talking about.

And so while there's a boomlet in Chardonnay and -- -- is still associated with cabernet.

Is going to be a hard time for California wineries to raise prices because of this confluence of events.

Let's not talk about that so it's really there was less grapes planted in 2009 -- -- ten because there session right exactly get wet bad weather and ten and eleven again exactly so there's been shrinking supply and you get -- agricultural products you can't just ramped up overnight you've got shrinking supply and pricing pressures so what does that mean there's actually a wide open -- now.

For imports and so retailers.

Wind retailers and liquor retailers are actually starting to direct import more and more wine -- according to -- in solid stone bridge research.

And what that means that.

With all these pressures on California wineries -- a wide open for the imports to come and compete in this Alaska and California -- last -- America needs and that absolute because the state taxes going up -- the -- we talked that this the last time you hear you can't pick up and move I think you're absolutely skies are stuck.

One of the things that you -- you -- in your notes was the pricing of these bottles.

It's OK -- the ten dollar bottle.

It's -- -- 85 dollar -- yet we see more and more bifurcation in the marketplace on pricing we -- it in terms of who advertises with us and we'll -- in terms of what consumers are most often drinking.

And as we were talking about under fifteen dollar bottles it's in to no brainer to pick up and under fifteen dollar bottle wine in your way home from work one day and if you're trying to save for special occasion.

According to umbrage research as well people are spending to spending more carefully so once in awhile you'll spend 85 -- -- but the days of really enjoying a thirty or forty dollar bomb on an everyday basis are really over for now so the little twenty dollar baskets Greece quickly let's talk about e-commerce and why it's not working and we -- -- -- can -- get it together listen it's hard this is a hard category it's highly -- highly regulated.

A 3.5 bottles of people -- put VoIP pile up 3.5 pounds of liquor.

In a bottle -- -- -- break able to sit and cost shipping costs are enormous and the real issue is is that if you're innovative in the space a lot of people been chasing it.

Lot eighteen wine dot com Amazon.com why Nestle sold out.

So no matter who you what people are building up.

Nice -- a hundred million dollar businesses but there is an an obvious.

Winner in the category yet because it's expensive the shipping costs are high in and the regulatory gonna be really tough here and I feel bad for them -- like we were saying they can't move these guys are stuck.

-- -- bottom of Spanish CEO yes senate for the daily -- thank you Tracy resident knows -- staff thank you thank you.

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