Final answer:
The 'Sideways' Effect refers to the drop in demand for Merlot wine following the release of the film 'Sideways' in 2004, where a character's negative opinion of Merlot influenced consumer preferences.
Step-by-step explanation:
The 'Sideways' Effect refers to the unexpected impact that the 2004 film 'Sideways' had on the wine industry. Specifically, this term denotes a sharp decline in the demand for Merlot wine following the release of the film. In the movie, the character Miles expresses a strong disdain for Merlot, which led some viewers to eschew the varietal. Conversely, the film's praise for Pinot Noir contributed to a surge in its popularity.
The effects of popular culture on consumer behavior are notable, with the 'Sideways' Effect serving as a prime example. It illustrates how a single line in a movie can influence perceptions and buying patterns across a nation. The impact was significant enough to steer the market away from a previously popular wine variety.