The Financial Times story about pricy Napa wine being sold in British supermarkets at knockdown prices should come as little surprise to anyone who has been following the US wine industry. Aldi in the UK is not the only place to find cheap wine from Northern California. Aldi's US subsidiary, Trader Joe's has been offering examples for several months.

A slowdown in domestic consumption hit sales of the 2023 and earlier vintages - as it did in Bordeaux - a situation that was exacerbated by the arrival of large shipments of imported wine before the imposition of Trump tariffs. Then, of course, came the spat with Canada, which led to California wines being removed from Canadian shelves and tables. In 2024, 35% of California’s wine exports went north of the border, in return for just under US$450m. Almost all of that market has been lost.

The big question is whether California’s premium and super-premium wine sector is experiencing a blip, or a structural fall. And, to quote the respected Italian observer and consultant, whether Napa wines in particular, are ‘overpriced’.

Coffee pricing

At an average peak retail price of $100 per bottle, it is hard to argue that, compared to wines from other regions and countries selling at a quarter of this price, Napa offered value for money. But, American - and Canadian - wine drinkers had been trained to accept Napa (and other California) prices in the same way that coffee drinkers have been trained to pay through the nose for Starbucks’ and its competitors’ coffee. So, until quite recently, these wines were fairly priced - for their target customers.