Winebits 711: Anti-trust, Champagne crisis, wine investments

by Wine Curmudgeon Posted On

Champagne
“If there isn’t enough Champagne, does that mean we have to drink domestic?”

This week’s wine news: Biden Administration is looking at the alcohol business, plus rich people facing Champagne crisis and wine as the next great investment

• Wine and anti-trust: Consolidation has made the wine business top heavy in production and wholesaling, with a handful of companies controlling a majority of the business. The Biden Administration, as part of its new anti-trust initiative, is going to look at a couple of proposed mergers on the delivery side. The Federal Trade Commission says it will investigate Uber’s proposed acquisition of booze delivery service Drizly, as well as Uber’s “partnership” with grocery delivery service Gopuff (which also owns the BevMo retail liquor chain). Says one news report: “The FTC is concerned that the deal ‘could hamper competition in online sale and delivery of alcohol and convenience-store items.’ ”

• The rich are different: The Wine Curmudgeon never passes up an opportunity to quote F. Scott Fitzgerald. So be aware that there is a Champagne crisis in New York’s the Hamptons, where really rich people (“They think, deep in their hearts, that they are better than we are. …”) are having difficulty getting enough Champagne. Something about a pandemic, apparently, reports the New York Post. “The shortage is so bad that one … billionaire customer plans to fly 15 cases of premium Champagne on his private plane from France for his wife’s annual Hamptons birthday party.” How can the republic ever survive?

• If you’re tired of crypto: Wine could be your next great investment, writes Kevin Vandenboss on the Benzinga website. “One alternative investment with little correlation to the stock market and strong historical returns has been fine wine. Investors with connections to the top wineries around the world and access to the exclusive wine marketplaces have realized extraordinary long-term gains on the bottles that wine enthusiasts are eager to get their hands on.” Golly! Does that mean I can make enough money to fly in 15 cases of Champagne?