Taste the Rainbow!
Although Tennessee grocery stores won't be able to legally sell wine until 8 a.m. July 1, area Kroger stores are already getting a jump on the competition by stocking their shelves in advance of the new opportunity. In a move similar to taunting a puppy by dangling a jerky treat just out of reach, Kroger has displayed the filled shelves behind signs that read, "We hope you enjoy this sneak peek of our wine selection."
At my local Kroger on 21st Avenue South, there is a short section of shelving near the craft beer aisle filled front and back with wine bottles five shelves high. At first glance, the selection is fairly diverse, but definitely trending toward the lower end of the pricing spectrum. In other words, it doesn't look like Robert Parker will be browsing my Kroger for oenophile inspiration any time soon.
Pool pounders from Yellowtail, Barefoot, Sutter Home and Cupcake are well-represented, especially in the white wine spectrum. In a fairly obvious marketing strategy, the cheaper consumer wines are stocked facing outward into the store with the more expensive wines on the back side of the shelving units. So boxes of Franzia, big jugs of Carlo Rossi and bottles of Andre form the base of the value side, but a quick trip around the corner reveals better Bota box options, higher-quality chiantis and rossos and a few sparklers you wouldn't be embarrassed to carry to a party at your boss's house.
There is no pricing displayed yet under the bottles, but judging by what I saw, I don't think there will be many bottles over the $20-$25 range. Since the new legislation sets a lower limit to the groceries' wine mark-ups to prevent them using the products as a loss leader (thanks a lot, pols!), you might see a few items from more prestigious wineries like Ferrari Carano and Sterling tickle the upper limit of that price range. It'll be especially interesting to see if Costco sells some bottle from their national private-label wine programs that I've been particularly impressed by on trips to Alabama and Georgia.
While this should be a nice convenience for some grocery shoppers, I don't think the higher-end wine merchants have too much to worry about. Somehow, 35 other states have figured out a way for groceries and wine retailers to coexist, and I'm confident that this development will lead to overall market growth in the future.
