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Winebits 368: Wine terms, wine retailers, winery buyouts

winenews

wine termsI’m so tired of that: Amanda Chatel at the Bustle lifestyle website says she’s tired of being picked on by beer drinkers, noting that it’s a scientific fact that cheap wine tastes better than cheap beer. She posts 21 questions about wine she doesn’t want to be asked anymore, and if some of them aren’t especially clever, her heart is in the right place, and especially with screwcaps. And because it’s a lifestyle site, there’s a picture of “Scandal’s” Olivia Pope with the post, and the site has 127,000 Facebook likes. Which is something for wine sites to ponder.

Corporate buyouts: One of the world’s great cheap wine retailers, Cost Plus World Market, could get a new owner this year, if analyst speculation is worth anything. They think World Market’s parent, Bed Bath & Beyond, may be in play since it has underperformed the market. Don’t worry if you don’t understand that sentence; financialspeak can be as obtuse as winespeak. Know that the companies that do leveraged buyouts think they can make money buying Bed Bath & Beyond, stripping its assets and cutting costs, and then selling it again. Which usually means that the company becomes a shell of itself and underperforms the market again, setting itself up for another leveraged buyout. In this, World Market could suffer as well, a cheap wine horror too terrible to contemplate. Hopefully, the analyst speculation isn’t worth anything.

$40 million, anyone? Those of us who wonder why cheap wine doesn’t get enough respect always overlook the economics of cult wines. California’s Kosta Browne, among the cultiest, was sold for what reports are saying is more than $40 million. Which is a nice return for a 20,000-case winery that makes mostly pinot noir and owns just 20 acres of vineyards. Which means that he deal was almost all about the brand, demonstrating how powerful the allure is for a cult producer. That’s a lot of money for a name, but in the high-end wine business, name is all.

Wine trends in 2015

winetrends

wine trends in 2015Wine trends in 2015 will be similar to wine trends in 2014 — wine drinkers will see more wines they’ve never heard of and we’ll be able to buy those wines at more places than ever before, including and especially grocery stores. Along the way, Big Wine will continue to get bigger, and even wine writing could see significant changes, as those of us who don’t have money behind us will stop doing it. More, after the jump:

Wine prices in 2015: Stealth increases

winetrends

wine prices in 2015Wine prices in 2015 for the wine that most of us drink will do what they’ve done the past decade or so, which isn’t much. The exception will be wine that costs $20 or more, where there could be substantial price increases — as much as one-quarter to one-third, according to one distributor.

That’s because producers remain leery of raising prices for wine that costs less than $15, worried that those of whose drink those wines will switch rather than pay more. That’s the consensus from the experts who follow and work in the wine business that I talked to this week. More, after the jump:

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