Penfolds releases Kalimna Block 42 wine worth $168,000

[n4sir]

I wonder if in 10 - 15 years the free penfolds re-corking clinic will be available to the numerous releases of their screw-capped wines (ie 2006 RWT ect)?

WTF?

You're taking the piss, right?

[rens]

Just a quick reminder all, that Penfolds Re-corking clinic bookings are now open. We'll be visiting five Australian capital cities and look forward to over 1500 people spending some one-on-one time with members of our senior winemaking team and getting their wines assessed.

In case anyone was wondering, it's a free service.

I dont think anyone here would doubt the past history of what penfolds has achieved, nor its re-corking clinics.

I am happy to be corrected, but I believe we were talking about the current & future strategy of penfolds?

I wonder if in 10 - 15 years the free penfolds re-corking clinic will be available to the numerous releases of their screw-capped wines (ie 2006 RWT ect)?

Probably Grange will be the only one under cork then.

[Rossco]

I wonder if in 10 - 15 years the free penfolds re-corking clinic will be available to the numerous releases of their screw-capped wines (ie 2006 RWT ect)?

WTF?

You're taking the piss, right?

I can't cast a generalisation across the whole 2006
rwt production, but bottle number 21782 was definately
screwcap last Saturday night.

[Sean]

deleted

[phillisc]

Sean, its not just Pennies buyers who have paid 1000's of times over for the junkets, wine clinics etc., its mugs like me who buy anything in the TWE stable , particularly Wynns, Linderman's and Seppelts. Every bottle of JR, M and BL sold pays for the "marketing" and all those free airfares and lunches for the likes of Halliday and co in return for a few nice words.

Either way we all get "got" in the end.

Cheers
Craig.

[Mahmoud Ali]

I dont think anyone here would doubt the past history of what penfolds has achieved, nor its re-corking clinics.

I am happy to be corrected, but I believe we were talking about the current & future strategy of penfolds?

Exactly.

Clearly Penfolds has made some tricky decisions in recent times. One of them is to sell more wine in Asia and China. Another is to release more premium wines and so we are seeing more super-premiums or one-offs coming out now. Another is to put up the price of wines like the bins. Another it seems is to get into the world-wide luxury goods market.

All this is interesting enough and far better than a strategy of simply ramping up volume and slashing margins (to get market share) - which wasn’t working too well apparently. We have had opinions on these things and have talked about them here on the forum before (and now) and why shouldn’t we?

Where did "ramping up volume and slashing margins to get market share" come from? If you've been following the posts regarding Penfold's pricing I think you'd see that's been no suggestion that Penfold's should be lowering their margins. In fact it's the opoposite, that arbitrary price increases for their regular bins have put those wines in a price bracket above other equally good Austalian wines and beyond the reach of many traditional customers.

If Penfolds wanted to increase market share I hardly think a price increase would do the trick. However, if they wanted to push Penfolds into the luxury market in other non-traditional markets at the expense of Australian customers they are going about it the right way.

And their latest stunt fits the strategy. See the Blockhead ampoule wine, the $800-1,000 Bin 620, the $500 grange, can't afford it? Well, take a look at this Poor Man's Grange.........................

Mahmoud.

[Sean]

deleted

[n4sir]

I wonder if in 10 - 15 years the free penfolds re-corking clinic will be available to the numerous releases of their screw-capped wines (ie 2006 RWT ect)?

WTF?

You're taking the piss, right?

I can't cast a generalisation across the whole 2006
rwt production, but bottle number 21782 was definately
screwcap last Saturday night.

In short, I would expect bottles under screwcap should never have to be looked at by a Penfolds clinic - never.

Clinics are there to deal with a problem out of Penfolds control - the variability of cork because of its manufacture. While the cork industry still pushes the line that the failure rate is one in twenty (5%) Peter Gago himself has said it's more like one in ten (10% - from either TCA, cork fungus taint or premox) from their experiences at clinics and returned bottles. My own tally of cork faults experienced (of local & overseas wines) over the last 5 years have ranged between 9% and 14% per year, averaging out at about 12%.

While I don't think screwcaps are exactly perfect, the seals consistency at the manufacturing end usually is - I've been aware of a couple of examples where there have been faults (due to the glass manufacture not matching up) but in those cases the whole vintage is usually effected (and have been either not released, or could have been potentially subject to a general recall/replacement). The jury is still out as to whether dents can dislodge the liner inside and cause premature oxidation (after I have heard in the specific cases I've experienced there was in fact a bottle manufacturing fault like I outlined above), but this usually occurs after the wines have left Penfolds anyway.

Most bottle variation would occur after manufacture due to improper storage and/or damage. Would you buy a bottle at a retailer that has been sitting on the top shelf near the ceiling for years, one that has had obvious dents in the capsule, or have accidentally dropped/banged one in your cellar, and then expect Penfolds to take responsibility for it? That's up there with someone storing a bottle of Grange under the bed for ten years and then expecting it to be perfect or eligible for a replacement at a clinic.

My 2c,
Ian

[Panda 9D]

An honest question here... how many wineries that produce significant volume do you know that taste each and every barrel? I don't know if Penfolds do or not.. but I'm pretty sure it's rare. I could very well be making a bad assumption but it's possible that barrels can suffer the same variation as bottles, no? Is it possible that below par wine can enter a stelvin bottle without it being picked up by QC?

[Mahmoud Ali]

Mahmoud, I was referring to the TWE (incl Penfolds) strategy when it was run by the beer company distinct from what they seem to be doing since the split up of Fosters.

At some point the TWE number crunchers must have realised the company was bleeding dollars because of tougher export markets (their big hope for profits) and that the old strategy of high volume and lower prices was not only NOT getting them more market share, it was killing the brand names. In this country it was also tipping the power of pricing into the hands of the major supermarkets far more than they liked or could sustain for much longer.

I have to say that I can't speak for all export markets but here in Edmonton I don't think Penfolds was ever in any race to the bottom to increase volume. In the last few years the Bin 389 was priced in the high C$30s and low C$40s while the Bin, 28 and 128 were in the C$30s. Yet despite being cheaper than in Australia they didn't appear to be big sellers. A little more than a year ago a few stores put the Bin 389 on sale for C$24.99; still on the shelves were vintages from 2001, 2002, 2003, 2004 and 2005. Last fall I spotted some '00 Bin 389 gathering dust on a shelf despite a sale price of C$28. In the UK I believe these wines ares similarly priced.

I don't think price increases will do anything for sales unless there is a complete revamping of Penfolds image for new drinkers since current customers won't be convinced that they're getting anything better at the new higher prices.

........And the reason for my earlier post (and the gist of it) was that I found the comment in this thread about the re-corking clinics being free not just off-hand, but a little grating because of that.

I take your point. I'm sure the cynicism is directed towards Penfolds' marketing and price structure not the service they provide. There is no doubt that the re-corking clinics are a great service for those who want it. I'm sure the people who take advantage of it enjoy meeting Penfolds staff and other like-minded collectors. There is no doubting that.

Cheers...........................Mahmoud.

[phillisc]

What's the bet that 07 Grange will be the last vintage under cork, especially with the perceived quality of the 08. Can not for the life of me see significant stock that is in the hands of private buyers, that is 40-50 years old that is not stuffed, or so rare that even Moira can't procure one, in terms of what is floating around of that era. So eventually corking clinics, like mobile phones the size of bricks...remember those....will be a thing of the past.

The next little marketing strategy for Pennies might be a gradual release of all super premiums of 5-10 years ago being released under stelvin as a comparison. Pretty sure they will be damn expensive and sell like hot cakes.

Agreed with the change needed in marketing strategy, don't think too many 20 year olds know much about 389 let alone buy it, but this is where the marketing needs to start, not trying to convince old fogies like me

Cheers
Craig.

[bacchaebabe]

I've got a few of the 96 Block 42. Willing to let them go at $100,000 each. A comparitive bargain. I'll even find a nice box for them.

[griff]

I've got a few of the 96 Block 42. Willing to let them go at $100,000 each. A comparitive bargain. I'll even find a nice box for them.

So generous Kris. Are you sure you want to sell them at that sort of discount?

[n4sir]

A number of bottles of 2004 Block 42 sold at a local wine auction tonight. The price?

AUD $380 plus 15% commission, a grand total of $437 per bottle. Same wine, different packaging, less bull....

Cheers,
Ian