Happy Holidays To All.  

But is the sky falling? Chicken Little thought so.

 And if you listen to the news media every day, you couldn’t be faulted for believing Chicken Little’s scare mongering these days.

The good ole “US and A” surely has serious financial problems today, but is the sky falling? Will we return to bread lines and 25% unemployment? We weren’t yet in business during the last major recession, in 1974, but I do remember 20% interest rates, gas lines, wage and price controls, etc.

In fact, we’ve survived a few recessions since opening our doors back in 1987. Six months prior to selling our very first case of wine, the stock market crashed 22.9% in one day, which triggered a deep recession. (I remember that day well, since at the time, I had a very small IRA account from my previous job invested with Charles Schwab and that very day, I phoned my broker over and over to try and sell some of the stock before its value vanished - this was before computer trading sites - but to no avail. I heard nothing but busy signals on the phone all day long. It was literally impossible to sell stock that day and I just lost the money.

 Over the last few weeks, I have been in the city several times, and restaurants do not seem barren. Seats are mostly filled at many of our accounts, and bottles of wine are being consumed by most, albeit less expensive ones. People are still spending money but they are cutting back on extravagance. All in all, is that such a terrible thing? Maybe paring a little excess out of the system will do us some good, and in the long run, make us a more healthy country? Well, that’s one way of looking at it.

Meanwhile, we here at Michael Skurnik Wines have always run a tight ship. We are not growing at the same rate as we have in recent years, but we did grow in 2008, and we remain in excellent financial health.

We have always had a diverse portfolio that includes plenty of excellent value wines, and these selections are flying out the door! And even though we made our reputation at first, by assembling a portfolio of high-end benchmark wines, it’s no secret that our value wines are also among the best in the business. In fact, just today, I received the following sentiment from one of our best retail customers in NYC: “Harmon, especially in these trying economic times where people are spending less, no one can beat your lower priced selections.”

We have always been proactive, and have adapted to changes in the marketplace as quickly as we can, and this economy is no different. Customers are demanding value and we plan on continuing to give them plenty of it. The dollar is getting stronger and we are already reflecting that in much of our pricing. Michael and I are heading to South America in March to search for even more value wines. Etc.

In any case, this, too, shall pass. Really! Try not to get caught up in the “sky is falling” hysteria being promoted by the news media, who know that bad news brings in bigger audiences than good news. While the economic medicine this time around seems particularly bitter, I assure you that Champagne will once again flow in this most resilient of cities. And when the tide comes back in, we will once again be well positioned to respond to changes on the upside as well.

All that said, I’d like to take this opportunity to wish you and your families, health, happiness and togetherness during this holiday season. After all, what’s more important than that?

In Vino Veritas,

Harmon Skurnik