Posts Tagged ‘Price’

 

Chances are that at least once in your life you’ve found yourself at a restaurant, sitting next to someone who claims to know everything about wine.

They usually hold their glass up toward the light to see the color of the wine, talk about tannins, grape variety, soil quality… Of course, the most expensive wine always seems to be the best one.

But recently, several studies have shown that the price itself of a wine can actually influence its taste.

In 2001, Frederic Brochet carried out two experiments at the University of Bordeaux. In one of them, he got 54 oenology students together and had them taste a glass of red wine, and a glass of white wine. They described each wine with as many details as they could. What Brochet did not tell them was that both glasses were actually the same wine. He had simply dyed the white wine red – which did not affect its taste. In the second experiment, he asked experts to assess the quality of two bottles of red wine. One was very expensive, the other one was cheap. Once again, he had tricked them, filling both bottles with the cheap wine. So, what were the results?
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Drinking for pleasure...

Drinking for pleasure…

 
As the Chinese economy slows, new figures confirm that Chinese consumers are seeking out less expensive wine brands.

 
Analysts Wine Intelligence found that in the first quarter of this year, 60% of consumers between the ages of 18 and 50 spent less than CNY200 (€25) on imported wine.

€25 is generally recognised as entry-level wine in China. An earlier survey in January this year had found that fear of buying a fake wine was the biggest barrier to entry for imported wines, with 44% of respondents saying it put them off buying.

‘There is a growing trend for drinking wine for pleasure rather than serving it at banquets or giving it as gifts,’ Maria Troein, China manager for Wine Intelligence told China Daily.
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Scores 100 points!!!

Scores 100 points!!!

 

A price war is raging among retailers in Australia over the 2008 vintage of Penfolds Grange, which received a perfect 100-point score from The Wine Advocate.

In a bid to lure buyers with the lowest retail price, Australian liquor chain Dan Murphy’s cut its price from AU$669 to AU$645 (£423) in order to go lower than US supermarket chain Costco as the cheapest place to buy the prized new release.

According to The Sydney Morning Herald, Costco responded to Dan Murphy’s discounting yesterday by knocking a further $5 off its price to bring it down to $645.

Sydney-based independent wine merchant Kemenys is also selling the wine for $645, despite it carrying a recommended retail price of AU$785 (£515).

Meanwhile, UK-based fine wine merchant Farr Vintners has waded into the pricing war, matching Dan Murphy’s and Costco’s price, selling the wine at £350 in bond, which, with VAT and duty added, works out at £422.40 a bottle.

Having put 78 bottles on sale yesterday, the wine was already moving quickly at Costco’s Melbourne store, with assistant manager Nick Weller reporting “fantastic” sales.
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Ouch!

 

Unlike most other wine categories, Champagne sales were not sufficiently buoyed by surging demand from Asia and North America to compensate for declining shipments to Europe in 2012. A large share of consignments are Europe-bound and because of this, the economic crisis hit the region with a full frontal attack.

 

According to Champagne marketing board CIVC, sales of Champagne for the first eleven months of 2012 were down 3.8 percent on the previous year. The fall is primarily due to a drop in sales in France – the region’s largest market – where they declined by 5.2 percent to 144.35 million bottles, though also to falling volumes in Europe. Moving annual totals within Europe dropped by 8.3 percent due to markets such as the United Kingdom and Germany. However, Thibaut Le Mailloux, spokesman for the marketing board, said the figures should be put into perspective: “the downturn comes on the back of two years of strong growth that followed the 2008-2009 financial crisis”.

Fortunately, although many of the region’s sales outlets are in Europe, non-EU countries came to the rescue with a rise of 3.5 percent in sales. The Chinese market may well be geared to red wines, the first half of 2012 saw it reach a turning point with China entering the top 10 export destinations for Champagne for the first time ever. Sales surged by almost 100 percent to 947,713 bottles over the half-year. Fellow Asian market Japan also rose significantly (+26 percent) to over 4.5 million bottles.

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Deep discounting over the Christmas period in the UK and France has led to Champagne volume growth in the major multiples but also one bankrupt supplier.

Retailers in Champagne’s two largest markets employed aggressive price cutting tactics to entice shoppers during December, while suppliers of inexpensive supermarket labels struggled to make money as they attempted to absorb the increasing cost of grapes.

The latest figures to be released in the UK show that supermarket chain Asda achieved a 25% increase in Champagne sales over December from an aggressive deal on its exclusive label Pierre Darcys.

Having slashed its price from £23.98 to just below £10 a bottle, the supermarket reported sales of almost 250,000 bottles in a single week in the run up to New Year’s Eve.
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british banknote 5 pounds sterling obverse

 

 

The average price of a bottle of wine in the UK has broken the £5 mark for the first time.

According to the latest figures from Nielsen, the average off-trade price of a 75cl bottle of wine now stands at £5.03.

The finding forms part of a WineNation 2012 report commissioned by Accolade Wines’ research team in collaboration with Nielsen and other research bodes.

According to the report, since 2002, 80% of the rise in wine pricing can be atrributed to tax increases.

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Good news, or bad?

Good news, or bad?

 

Report highlights falling production, increasing prices, and a trend towards consolidation in the global wine industry.

Consumers should brace themselves for rising wine prices in 2013, with wine production falling to a five-year low and producers starting to raise their prices.

While oversupply conditions have characterized the $102.2-billion wine industry in recent years, keeping wine prices low and damaging the wine industry’s profitability, that’s starting to change, says a report by U.S. market research firm IBISWorld.

Global production has fallen during the past five years at an estimated 1.8 percent annualized rate to 248.2 million hectoliters in 2012. Much of this production decline occurred in Europe, because the European Union offered incentives to growers to reduce winery acreage, and removed distillation subsidies, which supported unviable producers.

IBISWorld reports that this… read on

 

ilus_pano_cava

 

Noel Reid, wine and spirits buyer at Frederic Robinson has said positioning Champagne at prices not far above that of Prosecco or Cava could “very seriously damage the reputation of the entire segment”.

His comments come on the back of the Harpers’ news story on December 19, when Dr Steve Charters MW, professor of Champagne management at Reims Management School claims on the back of the Eurozone crisis the market will not pick up until 2014/2015.

In response from an on-trade perspective Reid said: “I think it is fair that Champagne sales mirror the success or otherwise of our economy at that time.” He added there will always be individual brands that buck the trend due to great marketing or brand loyalty, in other words success stories which you find within any consumer sector.

However, Reid said the fear for Christmas 2012 and 2013 is that retailers will simply “buy” market share with huge price reductions that have a significant impact on sales and can lead to a real worry of consumers believing that the prices are sustainable with clearly they are not.

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Sulfur dioxide is used to stop wine oxidizing and spoiling, but it can cause health problems for some people. A three-year, $5-million EU-funded project has now discovered a potential replacement for SO2.

European researchers are close to finding an effective alternative to adding sulfur dioxide to red wine and other foodstuffs, which could make future holiday seasons happier and healthier for millions.

Sulfur dioxide (SO2), often labeled as E220, is used as a preservative for certain dried fruits and in winemaking as an antimicrobial and antioxidant. Most people can tolerate a small amount of SO2 in their food and wine, but for others it can cause allergic reactions or have other side effects such as headaches.

The European Union-funded so2say project believes it may now have identified a combination of two extracts that can be used instead. Both of them occur naturally in wine and could reduce the presence of SO2 by more than 95 percent, say researchers.

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headache-illustration

 

New research finds that those who suffer from headaches would pay for less sulfites in their wine.

Sulfur dioxide use in winemaking has been coming under the spotlight as a minimal-intervention movement agitates for less reliance on the compound. Sulfur has taken flak for causing health problems, although the scientific community is divided on the issue.

That prompted a Colorado State University study of consumer perceptions of sulfites and whether drinkers would pay more for a bottle labeled “low in sulfur.”

The findings, published by the American Association of Wine Economists, are that consumers would be willing to pay a little extra — about 64 cents — for wines that contain low levels of sulfites. In comparison, the premium placed on organic wine is $1.22 — nearly double — which suggests public awareness of the addition of sulfur is embryonic.

The researchers offer an alternative explanation. Consumers, in their view, are aware that “organic production protocol prohibits, among other things, the use of added sulfites.” In other words, if drinkers pay the extra for organic wine, low sulfites will be included in the package.

Sulfur dioxide (SO2) — in the form of potassium metabisulfite — is added to most wines and many other food products for its antimicrobial and antioxidant properties. The term “sulfites” on wine labels refers mainly to sulfur dioxide, but also includes sulfurous acid and other sulfites.

But sulfur dioxide is also a natural by-product of fermentation, so it is unlikely an SO2-free wine could ever be produced. Most yeast strains yield 10–20 milligrams per liter of SO2 during fermentation, although some, such as FX10 and M69, produce significantly more than others. Without sulfur, wine is prone to oxidation and spoilage.

Consumers have been asking questions about SO2 since wine labels started to carry a “contains sulfites” message. Sulfite mentions, after all, share label space with warnings that women should not drink during pregnancy, and against drinking and driving.

Although a small number of drinkers suffer ill effects from sulfites,… read on