Washington Wine - Challenges in The Consumer Market

Challenges in The Consumer Market

In his book Washington Wines and Wineries: The Essential Guide, Paul Gregutt, a wine writer for The Seattle Times and Wine Enthusiast, found that there is a common perception that Washington does not excel with any particular flagship variety or blend, as is common in most of the world's notable wine regions such as Napa Valley with Cabernet Sauvignon, the Mosel with Riesling, Australia with Shiraz, Chablis with Chardonnay and Pomerol with Merlot-based blends. There is also a perception that Washington wines are more expensive than other New World wine regions despite the fact that the state's two largest producers (Chateau Ste Michelle & Columbia Crest) focus primarily on value wine production. This may be partly due, as Gregutt noted, to the fact that many consumers think that Chateau Ste Michelle and Columbia Crest are California wine producers. While some wineries in Washington are large corporate run businesses, many Washington wineries are small family run businesses, with production often less than 25,000 gallons per year. Smaller wineries typically sell much or even a majority of their production direct to consumers through tasting rooms.

Despite producing significantly more wine than neighboring Oregon, Washington wine lags far behind in consumer recognition among the general wine market. Wine experts such as Tom Stevenson speculate that this is because the wine industry in Oregon is uniquely associated with one main varietal--Pinot noir—while Washington has yet to shape an identity around any particular varietal or blend but instead aims to succeed in producing many varietals and blends of high quality. The similarity between the name of the state and the capital of the United States-Washington DC-may also contribute to the wine industry's lower profile. Master of Wine Bob Betz, who represented Chateau Ste Michelle for 28 years as an educator and now makes wine under his own label, noted that often in his travels internationally and across the United States he would get asked "which side of the Potomac?" that Washington wine grapes were grown on. According to Betz, a significant challenge to the Washington wine industry is increasing consumer awareness and name recognition of the state's AVAs that appear on wine labels. There are 12 AVA's in Washington State.