Rhys Spring 2013

WINE TALK
41

I can see the glass costing more than double, but why would the label, capsule and cork cost more than double?

42

naming one’s child Rhys to get a bigger allocation? Should have named my kid La Tache!
alan

43

Smaller runs

44

Magnum production is maybe 5 or 10 percent of a given bottling’s production, so no economy of scale in ordering glass, corks, capsules and labels. And, if using a bottling truck, there are typically “changeover” charges (to recalibrate) for each bottling and format size which affect each wine bottled. It’s less costly, bottling-wise, to bottle 1,000 cases of a wine in 750s than to bottle the equivalent amount of the same wine in various formats.

45

Why the huge disparity in price increases then? What is the delta between increased packaging cost and what a producer charges? The examples I used were all small production wineries yet price differences were any where from 0% to 44% more.

46

Joe,
2010 was a good year for Alpine Chard so allocations will be 3 or 4 bottles for long time customers.

47

Best news I’ve heard today !

48

Didn’t name either of may kids La Tâche, but they both are.

49

As in “the stain” or “the spot”?..English translation newhere

50

Most days I wouldn’t go so far as “the stain”. The “task” - must add the circonflexe

51

a 1.5L Glass cost more than 2x. ok… label/capsule/cork/trimming everything cost more… ok…
but how much more? how much on average does it cost for all that on a 750ml?

The thing is, if you just doubled the price, you are recovering the same amount against your variable cost as 2x 750ml.
example. if glass/cork/everything all in cost $10 on a 750ml. $25 on a 1.5L - purely arbitrary numbers.

If you sold it for $60 for 750ml, if you just doubled it to $120, you are effectively recovering the $10 variable cost twice. So you’re out $5.
But as a business you’re also moving two times the inventory no? and in MOST businesses (except diamonds), you normally give incentives to move more inventory.
This would be like if you went to a farmer’s market to buy grapes. it’s $5 per lb, but $12 for 3lbs.

So take Rhys as just an example. it costs $59 and $139 (or $21 over two 750ml bottles). It is hard to imagine variable cost being anywhere close to $21 more for the mag. That means there is a PREMIUM on buying MORE inventory. That, I think, is what people are perceiving as a unique model in the wine business.

This is by no means a knock on Rhys or any winery… but there does appear to be inconsistency in the pricing which is driving that discussion.
(sorta like why does that stand sell 1lb for $5, and 3 for $12, but you are selling it 3 for $20?)

52

People act like Rhys is taking advantage of their customers with their magnum pricing. First off, their shipping is free. Secondly, no one is making you buy a magnum versus two 750’s. Finally, incentives for buying more wine vary wildly between producers and retailers. Some give you free shipping on a full case, others a % discount, most… nothing at all.

53

Who’s acting like Rhys is taking advantage? I think this is more a theoretical discussion with Rhys being an example. We can start a new thread on this I suppose…

No one is making anyone buy anything…or read this forum…or take a shit for that matter… [wow.gif]

Great point, and the core of what I’m asking… Why does a mag cost more than 2x750ml, but if you buy 12x750ml you get a discount (sometimes)- except for what I believe are fairly minimal increases in variable/production cost. Oh and it’s interesting that the incentives ‘vary wildly’…

54

rarity and collectability are prized traits in a bottle of wine. a mag satisfies both of these, so a premium makes sense.

55

Gene,

I think in some old thread it was mentioned that Rhys will start pricing some of their wines in tiers. The premier bottlings being Skyline and Swan, then the other single vineyards, then the appellation wines.



Kevin,

I saw that the Home vineyard pinot is not $79, would it be possible to ask for the pricing tiers you plan to have moving forward, at least for the 2010 wines? Will the 2010 Horseshoe and Alpine pinots be priced same as the 2009 prices? Lastly, are you planning on doing 3 releases for the 2010 wines or just 2? Just need to plan ahead on what purchases to expect this year from Rhys.

56

Agreed. This is a theoretical discussion not a knock on Rhys. My apologies for the thread drift: I guess this should be a different thread.

57

Joel, I don’t know the answer to your pricing question, however, based on past comments, there will likely be two releases for the 2010s, not three. [cheers.gif] Further, at one point Kevin noted that, due to the small supply of 2011s, they may only have one release for the 2011s. [stirthepothal.gif] Kevin, any early thoughts on how the 2012s are looking? We love them already! flirtysmile

58

At the last pick up at Rhys, the people working at Rhys were quite excited and it was a general consensus that 2012 was not only a good sized crop, but also an excellent one as well, for some vineyards the best that they have made so far. Of course Kevin would be able to chime in more specifics regrading the vintage.

59

J.,
We have no current plan for price increases. The 2010s will be priced the same as the 2009s except for the Skyline and Swan Terrace (which we raised to $99). We did not make the Home in 2009 but $79 will be the price going forward.

The remainder of the 2010s (we already released the 2010 San mateo) will be released in two releases this year. After that we plan on releasing the 2011s in one release (yes, there is barely enough for one!) and then start on the 2012s in the Fall of 2014.

60

So after this one, there is 2 more releases in 2013 - to release the 2010s.
then Spring 2014 - release 2011 vintage
then Fall 2014 - start 2012s vintage
?

If so, what is the approximate timing of the 2 releases left in 2013? normally there’s this one and one in september right? would it be May/Sept now?