The Ever Changing Marketplace

I spent last week in DC/N. Virginia and in Richmond working with our distributor in the area, International Cellars.  While in the market I learned an interesting fact from them concerning business in Virginia.  Recent data put out by the Virginia ABC (Liquor Control Agency) shows a 20 % decrease in wine sales to restaurant over the past six months, while at the same time showing a 40% increase in retail wine sales.  What an interesting trend.  Essentially this means people have slowed down the amount of eating out they are doing in restaurants and thus the 20% decrease in sales.  At the same time,  a 40% increase in sales at retail is a huge.  I am assuming this is strickly sales dollars.  This is a significant trend in that people are still consuming wine, perhaps more wine, but are drinking the wine at home rather in a restaurant.  So in the midst of a recession, wine consumption in this case has gone up overall but the point of consumption has changed.  It is probably not too surprising that consumption is going up during a recesssion,  but I think it is interesting the dramatic shift from restaurant to retail.

Happy New Year

I have started the new year on the road in the Virginia and Washington D.C. area.  If there is a time to work the DC market it has to be now.  Everyone here is gearing up for the inauguration of President elect Obama on the 20th of January. An estimated four million people will travel to the DC / Northern Virginia area to be part of the inauguration celebration.  That is a tremendous amount of people.  The restaurants are already booking up on days before and after the election.  Hours that restaurants and bars are open are being being extended to 4:30 A.M. on inauguration day. This will be great for the wine business and we should see a huge amount of wine consumed during this time.  The area seems somewhat recession proof, since the federal goverment has not stopped doing business.

I am also spending some time in Richmond, Virginia.  Richmond is the capital of the state of Virginia and about a two hour drive south of Washington D.C.. I am staying at The Jefferson Hotel. This is a must see if you ever come to this area.  I had a tour of the hotel yesterday when I arrived and was very impressed with how they have preserved this building which was built in 1895. We poured wine last night for a group of hospitality executives in the area. I am working the market today and finish my trip off tonight with a dinner tonight here at the hotel using our wines exclusively.  The dinner is full with about thirty people attending. You really do feel like you are in the south being here in Richmond.  The restaurant in the hotel serves peanut soup and deep fried pickles,  amongst other local specialties.