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Only 19 Days Left to the Louis/Dressner National Portfolio Tasting!
My daughter called me recently and wanted to know if we are hurting from the economic downturn.
I'm happy to report that the wine and alcohol industry is recession/depression resistant, if not invincible.
According to Warren Buffet, who appeared on Charlie Rose last night:
Historically, sin stocks have been considered to be recession proof, less prone to the cyclical downturns of the economy. Gambling, tobacco and alcohol are all habit-forming activities, thus there is an ever-ready pool of customers ready to purchase such goods and services, regardless of the economic conditions.
Mr. Buffet went on to say:
Alcohol is another outlet for troubled times, so distributors and manufacturers in this industry will continue to thrive. In times of financial distress it is the poorer consumer - the one often categorized as having a drinking problem - that will give up the sauce completely. The wealthy are the only ones who can afford to keep drinking, and it is their excess in times of despair that picks up the slack in the industry's profits.
The wealthy might trade down from big name wines to Touraine wines declassified as Vin de Table, but they keep their habits going.