The Elixir of Life: Wine or Water? At What Cost?
I’ve written on numerous occasions that today’s wines are of the highest quality and greatest value in the history of wine. A mere 50 years ago (which is a short breath in the 6,000-year history of wine), poor growing techniques in vineyards and unclean and adulterated grapes and fermented grape juice were the culprits in many off-putting wines sold in the marketplace.
Then the latest generation of winemakers took over the family reins in wineries across the globe. They were eager to learn new techniques and to employ new technology to enhance their wines in order to meet the growing sophistication of wine consumers’ palates. They were critically aware that the success of their wineries depended on expanding their brand recognition, and distribution, beyond their local and national borders.
In 2017, wine consumers have more choices than ever before from more regions than ever before, at price points lower than ever before.
The value and quality of wines priced at $15 and below has grown exponentially in the last 10 years.
A parallel history of water has occurred. Ancient Egyptians, Greeks and Romans cultivated grapes and produced wine as an alternative to contaminated water. As the quality of water began to improve, it was added to wine to dilute its bitter taste and off-flavors. Medieval winemaking practices dictated a ratio of two to three portions of water to one portion of wine.
In more modern times, water continues to be added to wines to mitigate unwanted components, including high alcohol and undesirable concentrations of naturally occurring sugars. In California, regulators now permit the limited addition of “Jesus units.” (That’s term for water, referencing his miracle of transforming water into wine at the Marriage at Cana.)
Once water became clean and pure, it slowly became a beverage of choice over other beverages, including certain wines. I remember the first time, which seems like ages ago, I came across a bottle of still water on the supermarket shelves. My reaction? They put tap water into a bottle and expect me to pay for it when I can drink my own (seemingly) free New York City Catskills spring water from my kitchen faucet? But over time, convenience won out over logic, and today I’m buying cases of “spring water” at my local supermarket.
These days, enterprising businesses are selling a bottle of water for less than a quarter. So, just as quality wines have been declining in price, so has bottled water. And that sounds like markets in perfect sync with each other: higher quality and lower prices.
Of course, there are exceptions to the norm. There are still a few wines in the marketplace where economic elasticity is upside down. I’m seeing the same phenomenon for waters. High-end “designer waters,” like the 11-ounce Voss, retail for well over $1. Even higher-end bottles from “Canadian Glaciers” retail for up to $14 per bottle.
In today’s consumer market psyche of “I will outspend you simply because I can” and “I need to have the most expensive product in the market,” it’s difficult to rationalize the price of wine compared to these waters.
When the vectors of wine and water prices cross in a pricing graph, it might be quite disconcerting to consumers. The price of select waters is greater than that of select wines?
Here’s a case in point:
For years, the price of Trader Joe’s Charles Shaw wines, dubbed “Two Buck Chuck,” have been the darlings of price-conscious consumers. At $1.99 per bottle, the approximately eight wines appeal to a certain demographic, selling nearly one billion (!) bottles annually.
Even when the price escalated to $2.49 – and Trader Joe’s retained the name (the new price rounds down into Two Buck territory) – sales remained solid. However, in a strange twist of upside economics, the Two Buck Chuck on Trader Joe’s shelves sells for less than select waters in the marketplace.
The “elixir of life” – wine or water? You decide. Is it composition or economics?
Nick Antonaccio is a 40-year Pleasantville resident. For over 20 years he has conducted wine tastings and lectures. Nick is a member of the Wine Media Guild of wine writers. He also offers personalized wine tastings and wine travel services. Nick’s credo: continuous experimenting results in instinctive behavior. You can reach him at nantonaccio@theexaminernews.com or on Twitter @sharingwine.
