Wine and recession: is it an issue ?

Recently I read an article by Michael Veseth in The Wine Economist which says: “ …. wine isn’t one big market, it is a lot of big, small and medium sized market segments ….. lifestyle wine consumers are unlikely to give up wine during a recession because it would mean more than changing consumption patterns, it would mean sacrificing an important element of their carefully constructed identity. But I don’t think they will necessarily simply trade down to lower priced wine either, because that would also undermine self image. I believe that people will try to maintain their lifestyle identity through the economic cycle to the extent they can …. so while some people will trade down to lower price, others will trade over .
As a quality wine producer I believe he is right.
Any comment ?

Michael Veseth is Professor and Director of International Political Economy at University of Puget Sound, WA (US)

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