Penfolds breaks the $1000/bottle RRP barrier

[n4sir]

Today I got the expected glossy presentation booklet & pics for the launch of the new 2008 Penfolds Special Bin 620 Coonawarra Cabernet Shiraz, but upon seeing the AUD $1000/bottle RRP my first immediate thought was...



YOU CANNOT BE SERIOUS?!

If they can get that sort of money good on them, and they've obviously got a plan to achieve it - it's only available in Australia from Penfolds Cellar Door & duty free, and it's also being released in Shanghai this month to try and take advantage of the Chinese appetite for First Growths and Bin 707 and their equally deep pockets.

I have to wonder if this is a sign they're going to hike up Grange & Bin 707 (and for that matter St. Henri) significantly next year too?

Cheers,
Ian

[Waiters Friend]

Thanks Ian

My comments:

a) good luck to Penfolds if their marketing allows them to achieve this four-figure sum
b) I'm not one of the billionaires likely to splash out on it

I wouldn't (well, let's be honest - couldn't) splash out for equivalent first-growth Bordeaux either. However, I suspect this is about supply and demand, and nothing to do with value for your drinking dollar.

At the end of the day, we can't change it, and if it fails majestically, we will pick it up at auction in a year or three around the $250 mark (which is what I have done for 1990 Special Bins).

Cheers

Allan

[Jay60A]

Back-buying Bin 90A and 920 would seem to be the way to go ... agreed.

Can't imagine how they will sustain that price but then Special Bin 60A and Block 42 from 2004 have appreciated considerably so who knows?

Will be bought by people with more sense than money, but the marketing value to Penfolds is huge I'd say.

[JF]

When are they releasing the Special Bin 888? Should retail in China for around $5,000 I would think.

[DJ]

When are they releasing the Special Bin 888? Should retail in China for around $5,000 I would think.

Wyndham Estate beat them to it by about 20 years - still should be able to buy 5 or 6 cases of the Wyndham Estate for one bottle of this 620.

[sjw_11]

Fair point... Wyndham ought to export to China add "special" to the bin 888 moniker, perhaps make the label red instead of black, and raise the price 10x...

[Chuck]

2008 was a ripper vintage in the Coonwarra so it's appropriate to bring this wine out. If it's as good as the original 1966 model it will be worth something but not $1,000. My only bottle cost $40 at auction about 10 years ago which is a little more reasonable. The first glass indicated it was gone but after an hour or 2 it had blossomed into a magnificent wine that blew the reserve bottle of '89 Grange into the weeds.

Carl

[n4sir]

I have to wonder if this is a sign they're going to hike up Grange & Bin 707 (and for that matter St. Henri) significantly next year too?

Sounds like this prediction has been confirmed:

Penfolds to go further upmarket, Treasury Wine Estates says
by: Maria Moscaritolo
From: The Advertiser
February 17, 2012 11:00PM

http://www.adelaidenow.com.au/business/ ... 6274108696

PENFOLDS vintages will be released twice a year and will be more expensive as part of a new strategy by Treasury Wine Estates.

The company, whose brands include Wolf Blass, Lindeman's and Rosemount, will chase higher price points for in-demand brands such as Penfolds Grange and also invest in vineyards and expand its presence in China as part of its growth strategy.

[rens]

I'll be waiting for the Coles V Woolies price wars to pick up some. Hopefully they go as mad as they did last year and I can pick up the 389 for around the $30 mark!

[n4sir]

I'll be waiting for the Coles V Woolies price wars to pick up some. Hopefully they go as mad as they did last year and I can pick up the 389 for around the $30 mark!

I hope that's the case, although it should be noted Fosters last year went out and confiscated a quantity of stock off the grocers when they thought the discounts were too generous and bastardizing the brand. Speaking of the Bin releases...

It's not just the premiums and icons that are going up either - I just got the new prices for the Bin series release next month and the RRP of the stalwart reds are up 15% or more.

It's even worse for Kalimna Club Members who've had their discount slashed to make the price hike considerably bigger, and no free Coonawarra Claret magnum this time with any case order as an enticement to buy through Penfolds. Great way to reward their most loyal customers.

Cheers,
Ian

[phillisc]

I'll be waiting for the Coles V Woolies price wars to pick up some. Hopefully they go as mad as they did last year and I can pick up the 389 for around the $30 mark!

Me too Rens, sorry Gavin, have given TWE a fair spray over at Bert's place.......someone has to do it, but apparently nobody is listening.
Penfolds have clearly lost the plot....why would i pay in excess of $30 for Bin 28 ( my fave of all the bin range) when there are so many better wines around, from smaller and some larger makers. I sometimes wonder what really happens in the upper corporate echelons of this winery!!!!!!

I have been told before and will be told again, TWE don't need you Craig, they don't care if you don't buy their wines...there are plenty of others ready to jump in on March 1.
I have often thought, why rush in, why buy now, play their game, be patient....patience earns respect.......respect takes time. At around RRP $70 for 389 and probably nearer $100 for St Henri......someone has their hand on it.....no respect there.

Sorry, i feel that i have to maintain the rage.....when the great Chinese market balloon goes bang (and wineries like TWE stop marketing their product like steel and jump on the suposed great almighty mining boom wagon...yes we have really seen the positive effects of that in South Australia ) then i might come back to buying their products.
Apparently TWE don't need me...well its mutual.
Cheers Craig