
Recent sales of the Chairman's Selections and other specialty wines in state liquor stores have been plummeting, despite last month's weeklong, 20 percent off sale by the Pennsylvania Liquor Control Board.
According to weekly PLCB sales figures, specialty wines have shown negative sales growth every week since Thanksgiving, after months of consistent growth. Since Jan. 1, sales are off more than 30 percent.
Non-specialty wines, representing the bulk of PLCB wine sales, grew by 5.4 percent in the first 15 weeks of 2008, compared with 3.5 percent growth a year ago. But combined specialty and listed wine sales growth during that period is slightly off from 2007.
Given the slow economy, that's to be expected, said Joe Conti, chief executive officer for the liquor board.
"While we may have a slight change or skewing in our specialty program and Chairman's Selection, overall our sales are robust."
The Chairman's Selection program uses Pennsylvania's leverage as one of the largest single purchasers to buy quality wines in bulk at discounted prices then pass the savings on to consumers.
While representing less than 5 percent of overall wine sales, the Chairman's Selection program is the PLCB's most recognized promotion, designed to draw customers into the stores. Specialty wines are found in the agency's Premium Collection stores, which are larger and offer more varieties of wine.
A third category, special liquor order sales primarily made to restaurants and bars, is growing but at only about half the rate it was a year ago.
Some wine enthusiasts and restaurant owners say the agency's own decisions and policies have contributed to declining sales.
With the Chairman's Selection program, the discussion often turns to the wines that are picked. "It's been clear for a couple of months that the Chairman's Selection program has become much less attractive," wrote one poster on the online eGullet culinary forum this week.
One example enthusiasts cite is the 2005 Rutherford Hill Rose, a Chairman's Selection from last year that has not sold well.
"The rule with roses is that you buy them the year they're made and drink them that summer," said Philadelphia wine columnist Mark Squires. "I haven't tasted that wine, so maybe it's an exception. But by 2007, a lot of them are already past prime."
On April 8, the PLCB Web site showed 337 bottles of 2005 Rutherford Hill Rose in various state stores, but the number had dwindled to under 40 by this week. It's selling for $5.99 per bottle -- reduced from $9.99 last year. Each price reduction means less revenue for the state.
"At five bucks," said Mr. Squires, "it might be a useful wine."
Another issue, according to some restaurant owners, are PLCB's money-saving moves to reduce inventory, which they say has made purchases difficult and inconvenient.
Penny Folino, owner of Folino's restaurant on the South Side, said she recently removed from the menu two popular wines, Luna di Luna chardonnay and merlot, because the state stores rarely had enough in stock. She said there are now "three or four" additional wines on her menu that she's having trouble getting.
"The last thing I want to tell any of my clients is that I'm out of anything. That's the worst thing you can tell them," said Ms. Folino.
She first noticed the depleted supply late last summer. The restaurant would go through two to three cases of Luna di Luna each week but, to get that much, Ms. Folino had to drive all over the county. "There'd be a few bottles here [at the South Side state store], a few more in Bethel Park and a couple in Blawnox," she said.
Finally, two months ago, she gave up and took the wine off her menu.
"People are still asking for it," she said. "It's bad for me and it's bad for the state store. But if I don't have it, the customer is going to be mad at me." In states such as Ohio where wine sales are private, she noted, she could have called a distributor and had the wine delivered the next day.
Sean Enright, wine director and bar manager for the Casbah Mediterranean Kitchen & Wine Bar in Shadyside, ran into a similar situation with a favored sherry, Dry Sack Oloroso Solera Especial.
He had been getting the Spanish sherry through special liquor orders but, once PLCB began carrying it in their stores, "I could never get my hands on it."
Eventually, the sherry was dropped from the state list -- Mr. Enright said the reason was poor sales -- so he once again gets it through the special orders. That means he has to make arrangements with his vendor a week in advance, but that suits him fine.
"I don't want to depend on the state to have it in," he said.
Mr. Conti said that with a change in suppliers, or if a company is sold, delays and fluctuations in inventory can occur. "We are certainly not hearing widespread concerns by restaurants on availability of wine."
He also said they are making the Chairman's Selection program more selective again, so it will be featuring 30 to 40 wines rather than the more than 150 wines it did last year.
With new wines coming in beginning next month, he said, state stores will be offering "the finest Chairman's Selections in three or four years."