California cabernet. It’s one of the most well-known and well-respected wines in the world. And California itself accounts for 90% of wine production in the U.S. Take a stroll down your nearest supermarket wine aisle, and you will notice how prolific cabernets from California regions have become. There’s good reason for this, but there’s also been criticism surrounding the rising prices of some California cabs.
The reason wine drinkers are currently so excited about New World regions like Chile and Argentina is because of the mass amounts of quality wine coming out of these countries at affordable prices. Consumers have a right to be frugal about their wine purchases—especially in this economy. So it is no surprise that buyers are thinking twice before shelling out more than $20 for a decent bottle. This doesn’t mean that many California wines aren’t worth a price tag of $20 or more, but when people can purchase an equally delicious bottle of cabernet from Argentina or Chile for literally half the price, what’s to stop them?
Perhaps it’s habit. We know what we like and sometimes it’s hard to stray. It is also hard to ignore the influences of experts from reputable wine sources who tend to rate California cabs higher than other wines, in terms of flavor, complexity and quality. Cabernet is a fuller bodied wine and takes very well to oak. This means it also ages very well and is capable of displaying a deep wealth of flavor. For the serious wine drinker interested in beginning a cellar, you can bet California cabernet will take up a good portion of the racks. So maybe bigger really is better? You can judge that for yourself. The main point is, for a serious investor, Cabernet’s ability to stand up to oak and age means it will benefit from a few years on its side, deepening in complexity, and therefore increasing in value over time.