Another data point. Houses in western Colorado near us are selling over asking.
Denver is in a very wierd place right now. From what ive looked at, it seems most pricing is dropping and/or going for under asking.
Everybody wants out
But as for the topic at hand, the unbearable malaise of the $2M home buyer is not the source of the wine industry’s problems.
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Are we still talking about wine here? The thread drifts have been interesting for sure, but . . .
Cheers
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The really easy money has been regularly buying equity index mutual funds since the early 1990’s, not letting up during even the recessions, and allowing returns just to compound.
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Just today, Wine & Spirits magazine announced that their Spring ‘24 edition will be their last print version, and laid off all their staff. Obviously, print media has been hit hard, and they had a lot of debt, but it was interesting that one of the factors they cited was “the softening of wine sales around the world”.
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Not down here in Parker-everything in our neighborhood that gets listed is under contract in a few days at or above asking. We had 5-7 go like that in the last 45 days.
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I just got this email. I’ve never sold wine. I bought very little at auction.
———-///————-
I hope you are well. We have seen a 20% uptick in the market, and we are cataloging and collecting for our June sale. Our June auctions have been very strong.
If you would like to consider thinning the cellar, send me a list and I’d be glad to coordinate estimates and logistics.
Thanks,
Paul
Paul Hart
Chairman & CEO
312-573-5582
Hart Davis Hart Wine Co
To quote a famous movie: buy, buy, buy! Sell, sell, sell!
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I saw that, that’s a big loss. I really enjoyed Wine & Spirits and thought their feature articles were very educational and well-written, and enjoyed their longform reviews. They also covered a lot of interesting producers other publications overlooked.
I found that comment interesting as well about wine sales. As much as Iiked the magazine, I was always a little concerned about the shelf life. The website wasn’t a destination, and their audience was very trade-focused (I’m in the trade), so not necessarily a great base to transform from a print model. Hate to see it go, though.
Hammer -----> nailed it.
Not a lot of those ITB to share like I have.
Dangerous to attach a number to it.
WMJ said the market was up like 3-5%, which I can say is about where I think it is too, just watching all the auctions I have this year.
I think this correction in the wine biz will be similar to the dot com crash. Gonna be a lot of pain. Many small producers will go away, and many of the older family owned brands will be gobbled up by the big fish. Going to be thousands of tons unsold and unpicked this coming harvest. Grape prices will fall too. The bulk market is already quite mature and will swell more. Fellas like Cameron Hughes and others will find incredible opportunities with all of the excess inventory. The wine biz has always been a boom/bust bust industry and the dreamers and less dedicated will drop out. You’ll see less sports stars and celebrities starting up brands too. So glad I’m on the sidelines of this one.
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There are a lot of 2024 election talking points thinly disguised as being on topic
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No kidding… The OP falls into the “thinly disguised” category (“on topic” meaning actually about wine).
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While we usually agree, I would suggest that Adam’s direct statement of sales would outweigh his opinion of what is a depression. To get distracted from that and devalue the numbers he’s put out and the admission of questioning his long term plans/viability is a mistake, IMO.
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Why does the federal government borrow its own currency when it could print it?
As best as I can tell, borrowing became the pathway because it was presumed the government would not stay perpetually in debt - that politicians would balance the books, at least from time to time. The thinking being that simple money printing would be inflationary.
Current national debt interest payments are circa $1T.
I’m not suggesting a break from this approach. I understand people rely on income from debt instruments.
I am saying though it is interesting to think about how that $1T could otherwise be spent - including possibly aiding people like winegrowers. Or pick your special interest - opera houses, metalsmiths, spacefaring.
What a culture does reflects its accepted and aggregate priorities.
Kudos to this place for creating a subculture where people celebrate their enjoyment of wine.
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I don’t question his sales figures and the pressure on his business, but using terms like depression is misinformation at best. I won’t even get into what’s worst.
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Ask Argentina why just printing money doesn’t work