StarForum

[BertWerden]

Global economic meltdown. Sounds nasty. And for many companies, it will be very nasty indeed.

The wine industry both home and abroad is not exempt from it. With less than flattering reports of 2008 Bordeaux and the current state of the dollar, there seems little point even running an en-primeur campaign given people will probably be able to buy them on arrival in a couple of years at better prices and after in-bottle thoughts are made. Better still, back vintage (better vintage) prices will be much more attractive buys.

That has not stopped a number of Australian wineries - both big and small - jacking up their prices to unprecedented levels. Now, don't get me wrong, we all have to eat but ultimately the market passes judgement of whether the increases can be sustained or not.

How many will buy new vintage Mount Langi at over $70 per bottle (Retail price)? Or Seppelt St Peters at the same price? or Dalwhinnie? What about Meshach at $100+, Armagh at $200+. And these are name brands, wines with pedigree.

What about the not so famous Glen Eldon Black Springs Reserve Shiraz 2004 at around $100? Not so much a increase as poor positioning (IMO). O'Leary Walker have a $100 super, as does Kilakanoon. With the softening of the US market, what happens to these?

In my time in the industry, I've never seen so many samples of super premiums floating about, the same wines on strict allocation just a few short years ago.

As I said, the market decides at the end of the day, but I'd hate to see so many suffer in the interim by damaging their brand with not so clever price positioning.

The irony is the number of litres leaving our door is still climbing and the premium spend is still there although much of it is for imported wines.

Interesting times ahead...
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[Rooman]

[BertWerden]

[PeteHazz]

[Jamie Hong Kong]

[waiters friend]

[Brucer]

Bert,
I have been thinking about these types of wines lately also.
I was a buyer of many of these wines, but have stopped, as I have too much, and need to stop spending.
Many of these wines sell for far far less now at auction, so its basically tearing up money buying these now, especially now there seems to be good wines for less , and many of these type of wines dont age very well, or are simply over done.
I made a list recently, and there is a lot in this catagory.
If I was in the business, I would drop the prices, so they get back to a realistic price for whats in the bottle.
Its easy to find them, just check the auction sales prices.
Bruce

[Mark D]

Brucer,
to be honest, there are very few wines that sell at auciton for more than they go for retail.
That is not relevant for old wines - of course 1971 Grange goes for more than it did in 1974, but the current vintages do not.

Other than Rockford BP and sometimes Black Shiraz, premium priced wines are rarely successful on the secondary market. Even favs like Cullen, Moss Wood and LEAS Chard struggle.
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I'm easily satisfied with the best (Winston Churchill)

[Dave Vino]

Wendouree seems to do ok. But it's usually only the hard to get onto mailing list ones that do well.

I'm over Auctions after getting dud after dud and reading comments on here if someone gets a suspect bottle it's 'off to auction with the rest of it'.

[Jamie Hong Kong]

[Chuck]

In the past buying at auctions has generated poor results for older wines however I've started buying current and recent vintages with a high degree of success quality wise. The prices are at least a third off retail; sometimes up to 50%. This may be because they are generally the much unloved cabernets and blends. Also I only buy from Adelaide auctions where there are many old houses with underground cellars that whilst not perfect are acceptable for medium term cellaring.

Chuck
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What we have here is a failure to communicate. Cool Hand Luke