NYT: Calfornia wine industry: Anxiety is all that's flowing

WINE TALK
1

Discuss politely amongst yourselves.

2

Intresting quotes from Adam Lee and Peter Cargasacci. Tough times.

I’m trying to do my bit.

3

Thanks for helping out, Mike. Can I have your CC number and send you a couple of cases? [wink.gif]

Tough times indeed. Not the first time we (the collective “we”) have been down this road, though. Business teaches one nothing if not how to be nimble and adjust on the fly.

4

it is rough out there in a lot of different industries now. plenty of folks are changing habits and evolving commercially.

5

I’ve got Peter C beat. I’ve dropped my drawers lower than 10% neener

6

It is all very obvious to folks such as me - I previously purchased quite a bit from mailing lists. I cut way, way back and now see a lot of what I was buying (hard to get) at retail for less than what it would have cost me off the list.

I try to support the producers I really like - and will continue to buy from them. But I am nibbling a little for some other producers at retail.

7

To many opposing forces.

You’re right. It ticks one off when they have paid 30% more from the winery, plus shipping, to get a wine than when it shows up at the LWS.

Some of the wineries have cut their prices and the distributors choose not to lower theirs.

I also have a big beef with people like SWS that supposingly represents a winery, but decides only to market it in certain States. I have gone to the LWS and asked for a case to be shipped in. I know that SWS is the distributor. They come back and refuse the order.

Gotta love the 3 tier system.

8

Cargasacci might sound insane sometimes [tease.gif] but man thats a really cool thing to do… [worship.gif]

9

Hopefully we hit bottom some time in the very near future so things can stabilize. Thanks for sharing the link.

10

Casey, I’m right behind you, I mean in front of…? …oh never mind…

It pays to be proactive. Maybe this next comment should be in Commerce Corner?

I just want to let everyone know we are having a “once in a lifetime” sale under both labels, Cargasacchi and Point Concepcion.

80% off everything! [winner.gif] Plus WE WILL PAY the shipping, the handling and the sales tax!!!

How can you go wrong? Don’t delay! Act now on this incredible offer!

The easy terms and conditions are that you pay for one case now and we will conveniently deliver five full cases to you in the afterlife!

If you act now, not only will we give you the 80% discount, pay for the shipping, pay all applicable handling charges and all sales tax, but we will also throw in a climate controlled wine storage container, in case of unforeseen contingencies. [worship.gif]

11

Tough times. Everyone I talk to in the industry says $40+ wines are pretty much dead except if it is small production stuff.

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The $40 wines I don’t mind, it’s the $100+ that really get my goat.

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Ok we’ve recieved great response on our above offer from all our tier AAAzC list members. We are now opening the offer to our aaaZc tier list also, as of 10:00 am Pacific time.

There is a deeper discount available if you are willing to act as a courier and transport wine to the afterlife for us. We’ve been very successfull in fulfilling all of our orders to the afterlife in a timely manner with our wine courier system! (But that shouldn’t be a surprise, after all, people are dying to get there…) [dance-clap.gif]

14

Sounds insane? Heh heh, you need to have dinner up at his place one dark night and dance with the green fairy.

You have no idea how “sane” he is. (he does grill mean ribs as well).

15

Its on my to do list.

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It’s really rough.

Distibutors are having trouble moving the wine to even get it discounted into the consumers hands since many, many retailers and restaurants are cutting way back on their inventories of higher end wines. Many who do order the wine are slower paying which gums up the system. I’ve heard that some well known, higher end wineries (whom I think we compete very favorably with on quality and price) are offering their stuff to distributors at buy one, get one free. My challenge is even though some may say we are better, those wineries have the name recognition.

A winery never wants to be in competition with their retailers and distributors but if they aren’t moving the wine, then what else can we do??? Hopefully folks will be able to loosen their wallets soon because I’m not sure the end result of this mess is going to be good for anyone.

17

pretty simple economics of supply and demand.

lower price = increase in demand.

price too low, such that you can’t compete… go out of business.
I think the good wineries who have loyal list customers will make it b/c they’re good business people (or hire good biz people).
If you can’t run a profitable business (i.e. make wine at a reasonable cost and sell enough of it at a reasonable price), you don’t belong in a free market economy anyways.

18

These are tough times. I’ve cut my buying way back and am making a conscious effort to do so. At the same time, the wines that I am buying? I don’t get in any rush because I know they’re going to be there in another month or two down the road. So it’s a double-edged sword to some extent, even if you are buying and not considering price.

19

Harsh, but true. Pure free market economics is inherently fair, but the end result is the weakest end up set adrift on the iceflow. The big mistake some make is “weak” doesn’t always mean overpriced or overhyped. We’re going to end up with a leaner, but in my opinion unfortunately meaner, industry. But there will be plenty of cheap wine for folks to drink.

20

Unless and until I see credible and reliable tasting notes from Hell, I’ll have to pass on your generous offer…

Bruce