Grange wars...

Big box stores blowing out Grange Down Under:

In-store marketing events and website countdowns for $600 bottles of wines? Maybe would have expected that in Hong Kong, but in Crocodile Dundee land?

Now down to $A479 at Dan Murphys…

Very interesting, a few thoughts;

  1. Penfolds have been very aggressive on pushing up Grange pricing over the last 10 years or so
  2. When prices were lower ($200-$300) they could sell it all easily. Hence nopt much pressure or driver for discounting.
  3. I suspect they have hit some serious consumer resistance at $500+ pricing
  4. Auction markets offer mature vintages at comparable prices to current release pricing
  5. Hard to imagine the 2007 going for $1000++ in ten years time given the quantity made
  6. Grange takes 30 years to reach full maturity and so I stopped buying Grange with 1998 vintage
  7. I was able to buy 1986 at auction last year for less than official release price for the 2007, I know which vintage I prefer in the cellar.

Good luck to Penfolds but I think they have hit the wall on Grange pricing

Brodie

I don’t see how they are going to sell current releases at a price well above the market price for the 1998 (as an example). I guess it works in Bordeaux in great years, but this doesn’t seem like a sound plan.

I will just continue to drink from my stash of 81 and 82 that cost $46.95 per bottle. I am both too old and too cheap to
buy the new stuff. Unfortunately it is now a small stash.
alan

I agree that this is crazy. You can buy the mid-80s Grange for $300-400. I also agree with Kevin when he discusses the 1998.Why would you pay these prices for the current release when the best Grange ever can be had for less and is just starting to approach its drinking window?

Yeah,

This is all true, and no way would I buy the '07 (and probably not at any price - the '07’s just aren’t great wines…).

This sort of scenario though is not really different to what has happened to Bordeaux and Burgundy wines though…and in many cases they are far worse off in regards to pricing increases.

Lots of good vintages at auction for $300 to $450, so I can’t see one reason to buy.
Also, from a restaurantt’s perspective it’s now too expensive…there aren’t many punters running around prepared to drop $600 or $800 on a bottle of vino that needs another 15yrs.

Kent can you speak to Oz prices in general. I’m under the impression that prices there are up across the board. One of my salesmen has his brother in law in Sydney sending back notes that a case of beer is 55-65 USDollars. Is the Grange price where it is appropriate if adjusted for inflation?

Australia is becoming an expensive place especially given the strength of the currency…Sydney particularly so.

Re Grange pricing, some historical est retails, based on wholesale pricing.

1983 -$50
1986 - $70
1990 - $140
1992 - $150
1994 - $190
1995 - $200
1996 - $250
1998 - $300
2000 - $350
2003 - $440

2 jumps occurred post 86 vintage during red wine boom and post 98 vintage after WS wine of year award.

Kent-- and others knowledgeable–is Grange as good now as it used to be?
alan

Alan,
I really only drink them with age and then very rarely these days.
When i worked for Penfolds some 15 or so years ago I always tried them on release and had teh opportunity to try multiple vintages.
I suspect very strongly, to answer your question that Grange is as good as its always been, as they tend to alter volumes to vintage conditions and they have such diverse grape sources.
having said that there have been some less than perfect vintages in the noughties, with a lot of dry years and hot summers to deal with.