2006 Produces a Third Year of Growth for California Bubblies
New, Youthful Wine Enthusiasts and Internet Sales Power Growing Wine Industry - High-End California Sparkling Wines Registers Solid Growth in 2006, "Bubbly Index" Finds
Just like the tiny, persistent bubbles rising to the top of a glass of cold, delicious bubbly, sales of top quality California Sparkling Wines have registered a six percent increase this year, according to Gomberg, Fredrikson & Associates, the San Francisco-based wine consulting and research firm.
This is the third year the "Bubbly Index" has been released, tracking the sales of high end sparklers. This follows 2005 which also showed a six percent growth.
"Increased consumption of high end wine reflects current cultural and economic trends: greater interest in quality wines by new wine drinkers and great consumer spending,” said Joy Sterling, of Iron Horse Vineyards in Sebastopol,California, a leading vintner of high-end Sparking Wines.”
This is more good news for the California wine industry which has been enjoying double digit growth over the past four years.*
Iron Horse Vineyards has registered an increase of 7.5 percent in revenue for its bubblies. Sales are not at the record levels of the Millennium year, but they have been steadily increasing.
Joy Sterling of Iron Horse attributes the growth to the discovery of quality sparkling wines among young wine enthusiasts who are not predisposed to French wines:
"To me, the most exciting perceived change in 2006 has been the influx of new, young wine drinkers. They are fueling the growth and are turning the dream of creating a wine culture in America into a reality. We used to think that our base centered on more mature drinkers ... people who grew into drinking wine, but the new generation is taking to wine much earlier; they are more adventuresome and experimental. They were ‘weaned’ on California wine, so they don't carry any European prejudices. California high-end Methode Champenoise Sparklings like Iron Horse fit the profile as an 'affordable luxuries.’"
Internet sales for Iron Horse, coupled with the relaxation of restrictions of wine shipments to states including New York, have helped drive sales.
"A large part of our success this year can be attributed to the increasing importance of our wine club - both in terms of sales and brand loyalty. People sign up for our club in person at the winery and on line. They receive quarterly shipments of four to six bottles ... and an array of social events - both small and large gatherings scattered throughout the year as a way of connecting with the winery, the vineyards and other wine lovers. In 2005, the wine club represented 8.04% of our total sales. This year, it is 12.87%. I attribute a good part of this growth to our new members from states that had been restricted from receiving our products. This has been an important development in 2006"