Final answer:
The 'Sideways' Effect is the term for the decrease in demand for Merlot wine after the release of the movie 'Sideways' in 2004, which led to an increase in the popularity of Pinot Noir due to the character's preference in the film.
Step-by-step explanation:
The 'Sideways' Effect refers to a significant change in consumer wine preferences resulting from the release of the movie 'Sideways' in 2004. This film's portrayal of wine tasting and varietal preferences had an unexpected impact on the wine industry. Specifically, there was a sharp decline in the demand for Merlot, while sales of Pinot Noir rose significantly. The character in the movie famously dismisses Merlot in favor of Pinot Noir, which influenced viewers to mimic his tastes, thus dramatically altering market demand. This phenomenon showcases how pop culture can influence consumer behavior and have real economic impacts on specific industries.