California’s Wine Grape Glut Continues As Value Price Wines Begin Landing In Discount Stores
Exploring $5 Wines from Grocery Outlet: Worth the Taste?
You’ve been waiting for that glut of 25 million gallons of unsold California wine to land in new bottles, new labels and lower prices at your local discount bottle shop.
They’re finally arriving.
Grocery Outlet is now competing with Trader Joe’s ‘Two Buck Chuck’ selling orphaned Sauvignon Blanc, Chardonnay, Pinot Noir and Cabernet Sauvignon under the label of Second Cheapest Wine. They sell for all of $4.99.
With consumption of California wine declining we told you about gluts of unused juice sloshing around California (and Washington, Oregon.) Where is it all going? Are we going to see it in the marketplace?
| ‘Bulk wine brokers at Turrentine Brokerage recently documented 25 million gallons of California bulk wine available for purchase.’ |
Your local store, Grocery Outlet, pounced on this Vino oversupply and has come out with their branded competition to Trader Joe’s Charles Shaw label. It now sells for $3.49.
Grocery Outlet offers Second Cheapest in a Sauvignon Blanc, Chardonnay, Pinot Noir and a Cabernet Sauvignon. They hail from California wine regions like Alexander Valley, Sonoma Valley and Napa Valley, all regions producing great California wine at higher prices.
How does $5 for a bottle of midweek wine sound? What does it taste like? Are they selling a $5 bottle of wine equivalent to the taste of a $50 or $100 bottle of wine normally found in the more expensive California wine regions?
Not quite.
We’ve tasted these wines, finding them drinkable but not spectacular. They’re enjoyable but not remarkable. They’re a perfect value for a Tuesday, Wednesday or Thursday pizza or spaghetti meal.
How many of us want to open up a $45-$75 bottle of wine on a weeknight. This $5 bottle of wine is a palatable value wine. We’d say these are comparable to a $10-$20 bottle. But, they won’t have the depth and nuance of a good estate wine.
What did we taste?
2023 Sauvignon Blanc– A tasty version of this varietal at a great price. This is the best of the bunch. Need a porch pounder? This is perfect if you’re a Sauv Blanc fan. Big bang in a bottle for your buck .
2023 Chardonnay-A competent wine aged in steel, not oak. It has a brighter, acidic taste, less butter. If you’re looking for butter this isn’t the bottle to grab. If you’re tired of buttery wine, this wine’s for you.
2022 Pinot Noir – Our 2nd best of the bunch. It’s a softer red wine popular with people shying away from the larger, bolder Cabernet Sauvignon’s and Petite Sirah. But, it’s not remarkable. However we ‘ll anoint this the ‘almost’ best tasting bottle of the entire flight. It’s not the best version of Pinot Noir you’ll taste, but worthy of a bottle of wine from Meiomi or Mark West.
2022 Cabernet Sauvignon-A fruit forward version of this wine with soft tannins and appears to be blended with another wine, likely Syrah. Again, good, but unremarkable
The stores we visited certainly had plenty of inventory but it did take a while to find Cabernet Sauvignon. We visited three stores before finally finding a bottle. One clerk told us they churned through three pallets of Cabernet Sauvignon over it’s inaugural weekend and they hadn’t received new bottles yet.
Obviously somebody’s enjoying $5 Cabernet.
Grocery Outlet’s version of their value wine is aptly named, ‘Second Cheapest.’ The name is homage to wine lovers who occasionally experiment and purchase the 2nd cheapest wine on a restaurant wine list. Sometimes hidden gems are found there. But, you have to be brave and want to experiment with a wine of lesser quality.
| ‘Stagnating consumption brings both good and bad news: lower bottle prices but fewer wineries still in business.’ |
Take a $20 bill down to your local Grocery Outlet and experiment. You may find something you like and it’s certainly easier on your ATM card than an estate wine from Napa, Sonoma, Santa Barbara or Paso Robles.
And keep an eye out for other new labels sporting names like Napa, Sonoma and Alexander Valley as brokers continue reporting weak demand for wine. Bulk wine brokers at Turrentine Brokerage recently documented 25 million gallons of California bulk wine available for purchase.
Here’s a partial list.
8+ million gallons California Cabernet Sauvignon
3+ million gallons of California Chardonnay
3+ million gallons of California Pinot Noir
1.3+ million gallons of California Sauvignon Blanc
400k+ gallons of California Pinot Grigio
This over supply (a consumer’s dream come true with dropping price points) will surely last more years than some wineries will be lucrative. Stagnating consumption brings both good and bad news: lower bottle prices but fewer wineries still in business.
Some notes on our wine ranking system.
Bill & Erin Hodge write about California Wine, the estates & winemakers producing them and educational information about Vino. Living in California Wine Country provides a front row seat to the places you want to visit the most here in the Golden State.
– -✰ means -What’s next on your list of wines
-✰ means -Not liking it too much
✰ means -We’ll drink this wine, especially if it’s hosted!
✰+ means -You’ve got our attention and we might buy this wine.
✰+ + means -We’re hooked and we’re going to buy this wine.
When you see -✰/✰+ with a slash, it means we disagree.
