Winebits 319: Malbec, health, Champagne
• “Après moi, le déluge“: Which would be the price of malbec after the collapse of the Argentine peso in January. Malbec is the national grape of Argentina, and its economic crisis will not only force down the price of its malbec, but prices of malbec regardless of origin as well as most cheap red wine. Because that’s how the law of supply and demand works. Or, as Lew Perdue at Wine Industry Insight wrote: “Think Australian invasion before the U.S. screwed up the value of its currency and sent the Aussie dollar soaring.” This is another example of why it’s so difficult to predict when wine prices will rise — too many moving parts to take into account. How can a company charge more for ts California grocery store merlot when the competition is dumping something similar, like malbec, in the U.S. thanks to a currency flop?
• How much did all that wine really hurt? Englishman Chris Chataway, one of the world’s great distance runners in the 1950s and who helped Roger Bannister break the four-minute mile in 1954, died in January. His New York Times obituary reported that Chataway ran a 5:48 mile when he was 64, 41 years later, but wasn’t entirely satisfied with the effort. One possible explanation: Chataway told a friend he had smoked 400 pounds of tobacco and drank more than 7,000 liters of wine (almost 10,000 bottles) since the 1954 race. Which demonstrates that he was not only a world-class runner, but a pretty funny fellow who enjoyed his wine, and which is also why this is blog-worthy despite the ban of health-related wine news.
• The power of price: Asda, the British grocery store chain, wasn’t selling much of its private label Pierre Darcys Champagne over the holidays. So it cut the price from £24.25 to £10 (from about US$40 to US$17). No surprise what happened next, is there? A British trade magazine reports that the supermarket sold almost £8 million worth (about $US13.4 million) of Pierre Darcys in the 12 weeks ending Jan. 4. That made the brand the fifth-best selling Champagne in Britain over the holidays, beating top names like Piper-Heidsieck and Taittinger — despite being sold only at one retailer. This, of course, is the other component in wine pricing: How do we account for the power of consumers?