Champagne & Wine

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  Elizabeth Riadi    Group moderator

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  Market Monitor

  Market Monitor
  
  The trend toward equalization of domestic wine prices and imports has accelerated, to a point few thought was possible a couple of years ago. Back then, California wines were vastly overpriced in relation to the flood of high-quality wines entering our market from Europe. But California's wineries increasingly are slashing prices in the hope of regaining the market's attention and are introducing second labels at sharply lower price points in an attempt to move bottles and improve cash flow. Meanwhile, the strong Euro, a difficult 2002 growing season across much of Southern Europe, and a mostly short crop from the sun-scorched summer of 2003 continue to exert upward pressure on European wines in the U.S. market.Today, the price gap between the most-coveted imports and the rest of the pack is wider than ever before. In Bordeaux, a relatively tiny group of highly rated wines continues to command feverish buying interest, while scores of lesser chateaux face the threat of bankruptcy. Grand crus from top Burgundy producers retail for $300 or more, while the same growers' excellent village wines are being given away for $40 or less. The best tete de cuvee Champagnes are more expensive than ever, as are Austrian wines from the finest estates and the top limited-production Barolos and Barbaresco (see coverage of all three categories in the current issue). While this trend results in breathtaking prices for some of the world's greatest wines, it also creates great buying opportunities for sharp-eyed wine drinkers, as opposed to label-fondlers.
  
  
  • 16 Nov 2004, 3:58 pm
  Elizabeth Riadi wrote: > Market Monitor > > The trend toward equalization of domestic wine prices and imports has > accelerated, to a point few thought was possible a couple of years > ago. Back then, California wines were vastly overpriced in relation > to the flood of high-quality wines entering our market from Europe. > But California's wineries increasingly are slashing prices in the > hope of regaining the market's attention and are introducing second > labels at sharply lower price points in an attempt to move bottles > and improve cash flow. Meanwhile, the strong Euro, a difficult 2002 > growing season across much of Southern Europe, and a mostly short > crop from the sun-scorched summer of 2003 continue to exert upward > pressure on European wines in the U.S. market.Today, the price gap > between the most-coveted imports and the rest of the pack is wider > than ever before. In Bordeaux, a relatively tiny group of highly > rated wines continues to command feverish buying interest, while > scores of lesser chateaux face the threat of bankruptcy. Grand crus > from top Burgundy producers retail for $300 or more, while the same > growers' excellent village wines are being given away for $40 or > less. The best tete de cuvee Champagnes are more expensive than ever, > as are Austrian wines from the finest estates and the top > limited-production Barolos and Barbaresco (see coverage of all three > categories in the current issue). While this trend results in > breathtaking prices for some of the world's greatest wines, it also > creates great buying opportunities for sharp-eyed wine drinkers, as > opposed to label-fondlers.