As reported by the Wall Street Journal, the luxury wine market is in a slump as even wealthy drinkers slash spending on fine wines. The slump comes even as Americans continue to drink more wine overall. Recession-weary consumers are choosing to buy more mid- and low-priced wines, causing a deep downturn in sales of wines priced at $25 or more a bottle. Winery analysts anticipate more merger and acquisition activity in the wine industry as profits become pinched. The slump follows a long boom period for high-end wines that was fueled by Americans’ rising wealth and heightened interest in luxury wine. One sign of the times: Auction Napa Valley – the premier charity event of the year – raised just $5.7 million last month as compared to $10.4 million last year. Sounds a bit like the luxury home market.
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