New York, N.Y. -- A new Manhattan wine shop is braving recessionary times by creating a new outlet for the California wine industry. California Wine Merchants debuted at 15 Bridge Street in New York's financial district with a vision of serving the neighborhood's growing residential population as well as the many professionals who work in the area.

Despite significant layoffs in the financial services sector and a slowdown in Manhattan's residential real estate trade, co-founder Jennifer Frank told Wines & Vines that the shop she opened with partner Taylor Senatore in late November is rolling with the economic punches and doing well.

"We're a specialty store, so that's helped us out a lot," Frank said. "People are still buying, they're just buying a little less expensive (wines)."

While the original plan for the 1,000-square-foot shop was to include a single table of under-$20 wines, it now boasts two, but it also offers exclusive--and pricey-- bottles from several wineries whose products typically don't make it to the East Coast. One of its prize listings is a Cabernet Sauvignon from the St. Helena winery Meander.

Such offerings depend on the relationships Frank and Senatore developed with specific wineries, some of which are quite selective when it comes to their placement in the market. Many, when they see the store and the setting in which the wines will be sold, are happy to make the connection. For some, Frank said, it's the only place on the East Coast aside from restaurants where they are available.

Strong connections with retailers who know what customers want and meet those needs is key for many smaller wineries as consumers retrench, according to business advisors such as Steve Jannicelli of Moss Adams LLP in Santa Rosa, Calif. Speaking to Wines & Vines last fall (see Northwest Sales Follow Consumer Shifts), Jannicelli encouraged wineries to review distribution channels regularly to ensure that the relationships they have in place are reaching consumers and delivering value.

Having a solid base of direct sales is good, Jannicelli said, but close relationships with restaurants and retailers can help narrow the gap with consumers and boost sales.

Given that demand for California wines in New York is high, and no other shop in the city aims at serving the California wine market exclusively, Frank and Senatore believe they've found a viable niche that can help wineries meet that goal. The research the partners conducted prior to opening the Manhattan store indicated that wines from California were the top choice of consumers, with wines from France and Italy in second and third place, respectively.

Frank said that initial plans for the shop include establishing its local presence. While it also accepts orders through its website, it will grow its online order business gradually. Ultimately, the partners hope it will become not just the East Coast's premier retailer of California wines, but a national vendor.

In the meantime, the local opportunities are keeping them busy.

"We jumped on the opportunity to get on the beginning of the wave of development that's happening," Frank said. We really want to serve this growing neighborhood."