Is "Two-Buck Chuck" Taking Over?
By Katie Frankle
Whether or not you cringe at the sight of the Charles Shaw wine bottle in the middle of your best friend's dinner table or you think he's smart with his money, Super Value Wines (SVWs), a new American wine category for wines with a low price point ranging from $1.99-$2.00, are here to stay.
The primary reason these wines are so inexpensive is supply and demand. Over-planting in Central and Northern California vineyards in 2000 led to a glut of grapes and wine prices plummeted.
And, with the economic downturn causing a dip in most mutual funds, even wine sophisticates are into saving money. High-end wine shops such as Wally's in Los Angeles are offering low-end wines to upscale clientele. Some of the favorites at Wally's are:
- Belford Springs Sauvignon Blanc, $4.99
- Twin Peaks Merlot, $4.99
- Summerfield Cabernet Sauvignon, $5.99
- Deep Canyon Cabernet Sauvignon, $6.99
- Deep Canyon Chardonnay, $6.99
SVWs have created a whole new perception about drinking wine. "When you can buy a bottle of wine for the price of a bottle of water, you've really got nothing to lose if you don't like it," Robert M. Cohen, wine writer and attorney, says. "Especially with the chilled white wines."
Because of these low prices, consumers are accustomed to paying less for wine and they're not ready to give that up. "The next group of low-cost wines might not be from the Napa Valley, it might not even be from this country — maybe an Eastern European country," Cohen adds, "but SVWs are here to stay."
SVW Statistics
- One in 20 SVW drinkers is a new wine drinker.
- In the first half of 2003, Californians purchased nearly 3.5 million cases of $1.99 wine, which is one-out-of-every-five domestically produced bottles.
- SVW wine drinkers consume (on the average) four glasses of wine per week and purchase four bottles of wine a month.
- Along with their SVWs, seven-out-of-10 purchasers continue to purchase premium wines and drink more wine than they did before the SVW craze.
Additional Resources
Wally's Wine, www.wallywine.com
Portions of this article were reprinted with permission from Robert M. Cohen's article for Touring & Tasting. Touring & Tasting runs our boutique wine club.
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