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Tag Archives: wine prices

Wine prices in 2015

winetrends

wine prices 2015The 2014 grape harvest in most of the world is finished, which raise the next question: What does harvest mean for wine prices in 2015? The answer is surprisingly complicated, depending on which region the wine is from; how expensive it is — or isn’t; and whether we buy it from a big or small retailer. But if the answer is surprisingly complicated, it’s not unexpected.

That’s because the wine business continues to adjust to the changes it has seen over the past decade, and which were exacerbated during the recession. Most of the predictions you’ll see, now and into next year, don’t take into account these changes. Which is silly. The days when the wine business was made up a handful of important producers in each country who sold to mostly local retailers through small, family-owned distributors are gone and may never return.

More, after the jump:

Winebits 351: Wine glasses, wine laws, and economic growth

winenews

wine news wine glassesDo wine glasses matter? The answer is no, says the Vinepair website in a post that includes the sentence, “Any industry that marries the existence of experts, the spending of cash, and the words ‘acquired taste’ as exquisitely as the wine industry does is bound to intimidate the uninitiated.” Which was a guarantee the Wine Curmudgeon would write about it. The post dismisses the idea that different shapes matter — a Bordeaux glass, a Burgundy glass, and so forth — and cites several studies and zings Riedel, the big glass company, repeatedly. Most of which makes sense, since I’ve never been convinced spending $100 for a glass is going to make all that much difference. The difference comes, I think, in whether you use well-made glasses instead of poorly-made ones. I buy the Forte from Schott Zwiesel, about $10 a glass, and am content. That’s about the twice the price of Libbey glasses, but the expense seems worth it.

Hell no, we ain’t reformin’: Pennsylvania’s state-controlled liquor store system has been the subject of much controversy as well as repeated demands for privatization. Reform seems as far away as ever, despite all the effort, and I’ve discovered the reason: Money. The Pennsylvania Liquor Control Board, which runs the stores, is a $2.24 billion business. Which is damned big — almost twice the annual sales of Crate & Barrel and only one-sixth the total of Whole Foods, even though the upscale grocer is a national company with more than 360 stores. How many state legislators, regardless of political persuasion, are going to throw away that much money? I’m not even sure I would.

Not just rich people drink wine: There’s a long and surprisingly boring post on Forbes discussing whether wine sales can predict economic growth. If someone can figure out what it actually says, let me know. As near as I can tell, it says that high-end wine sales are a predictor of U.S. economic health, which is not true and seems a silly thing for someone at Forbes to say. Because only five percent of the U.S. population buys wine that costs $20 or more, and the average price of a bottle of wine is about $10. So what the price of vineyard land in Napa Valley has to do with economic growth is beyond me. Which is probably why I do this and don’t write for Forbes.

Winebits 350: Three-tier, wine prices, wine marketing

winenews

three-tier systemNo love for three-tier: The Wine Curmudgeon has much respect for the Wine Folly website, which does great work educating wine drinkers. Its recent post on the dreaded three-tier system was no exception, detailing what it was and how it worked with quality graphics and clear writing. I don’t know that it gave enough credit to Prohibition in three-tier’s formation, but it did discuss its beginnings in the late 19th century, which I didn’t know. And it did impressive work tying the cost of wine to the inefficiencies of the system. My only complaint: That it forecast the coming demise of three-tier, based on direct shipping, the Internet, and flash sites. It’s not that I don’t want three-tier to go away, but it overlooks three things — three-tier’s constitutional protections, which the Wine Curmudgeon has lamented many times, the system’s immense clout through campaign cash, and that direct to consumer sales account for less than five percent of wine sales in the U.S. That’s hardly eroding the system.

“A giant sinkhole”: W. Blake Gray writes about the media’s immense joy in forecasting rising wine prices, which seems to happen every six months or so whether it’s true or not. The most recent example came after the Napa earthquake, even though the region produces just a tiny fraction of the world’s wine. Gray writes: “People just don’t have a sense of how enormous and international the wine business is — that if Napa Valley or Mendoza, Argentina or Barossa Valley, Australia fell into a giant sinkhole tomorrow, we would all be the poorer for it, but overall world wine prices would still not be much affected.” He also notes that many media types figure only rich people drink wine, and so deserve higher prices. I’m not so sure about the second; many of the media types who still get paychecks in this post-print world aren’t exactly paupers. My hunch is that it’s mostly crummy reporting. When a Washington Post writer proclaims that wine prices are skyrocketing when they’re not, and the Post is supposed to be one of the world’s best newspapers, it’s no surprise that everyone else misses the point, too.

It’s not about the marketing: Producers in the French wine region of Bordeaux are running around in a panic because sales are down, and this report discusses how it will try to solve the problem through better marketing — some €3m worth (about US$3.8). The Wine Curmudgeon, out of his great respect and admiration for Bordeaux wine, has a cheaper and simpler solution: Stop overcharging for your wine. It’s one thing to sell the best wines for hundreds and thousands of dollars a bottle, but when the everyday stuff costs $15 or $20 — and isn’t any better than $10 wine from California, Spain, or Italy — you’re not going to sell it, no matter how much you spend on marketing. One retailer, when I asked him why this was happening, attributed it to Bordelais greed. “If they can get it from the Chinese, they figure they can get it from the rest of us,” he said. Obviously, that isn’t the case any more.

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