Wine retailers committed to serving local demands amid looming tariffs
Wine Thieves has changed hands, but its new owners are still determined to keep their stock of foreign offerings accessible to its loyal customers even amid the looming effect that tariffs may have at the cash register going forward.
For now, the price points Dan and Gennie Gorback are determined to maintain on desirable labels are holding firm at the 3401 Mt. Diablo Blvd. wine shop.
“There’s a glut of wine in the industry so I know that would be a downward pressure,” Dan Gorback said of one factor helping keep prices at current levels.
But, just when the potential threat of tariffs is nullified for the moment, Gorback was quick to acknowledge there are issues co-mingled into the mix that can increase costs such as transportation and staffing.
“As I am doing the orders, there are other variables impacting so it’s hard to know how the tariffs will impact price,” said Gorback. “There is a lot of wine in the country already so that (supply) is not impacted by the tariffs.”
While a hike from $25 to $28 per bottle is one thing, affordability for their customers over time remains paramount and Gorback knows there is a limit to what customers will pay. That said, he cited identifying other wines in the same category that are less expensive while still being appealing will be at the forefront of the buying thought process.
“There are a lot ebbs and flows in the wine industry,” said Joe Mulcahy, wine buyer for Jackson’s Wine and Spirits, 3524 Mt. Diablo Blvd. in Lafayette, as well as Moraga Wine and Spirits, so time will tell how tariffs might impact price.
He noted too the plethora of pre-tariff stock in the current marketplace that’s causing downward pressures on prices. To help maintain shelf prices there is a willingness of some distributors and producers to even absorb potential price hikes rather than pass them along to the retailers.
But as Mulcahy learned from one small importer who planned to impose a 25% increase, change is coming. So, seeking out other brands offering similar quality wine to keep store foot traffic through the door remains the name of the wine game.
He was quick to note that it’s not just tariffs presenting new challenges to smaller retailers like their shops. Mulcahy cited an existing trend of younger consumers shifting away from wines purchases for other options as already impacting sales.
Tariffs are just the latest factor being added to the mix that local retailers are juggling in an already competitive marketplace.
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