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Academic Question: Is the 00 Grange really that rare?
Posted: Mon Jun 06, 2005 12:30 pm
by Craig(NZ)
Its started to pop up in Auckland at NZ$395 in the supermarkets.
Seems such a different Supply vs Demand market / Price than Aussie
Totally academic question, as who in their right mind (aside from vertical collectors) would buy it but hey.
C.
Posted: Mon Jun 06, 2005 1:02 pm
by Maximus
Craig,
I think you have a deep, dark, hidden fetish for Penfolds! You can't stop talking about them, one way or another! However, this post is indeed worth addressing given that I've seen the same prices here in Christchurch and on discussion with a colleague in Brisbane, was considering the establishment of a very profitable operation shipping 2000 Grange to Oz! Very bizarre.
Supermarkets over here and Southcorp seem to have a much closer relationship than those in Oz, some would say bordering on a monopoly. The supermarket chains buy up big, they obtain a cheaper wholesale price compared to the liquor outlets, Southcorp are happy because they've sold the wine that they need to and that's that. It ultimately means cheaper wine for the consumer, but the liquor outlets get reamed.
Posted: Mon Jun 06, 2005 8:29 pm
by Craig(NZ)
Oh no I think u r right, maybe i will go visit the quack tomorrow. I even drank 2 bottles of penfolds this weekend to make it worse.
Next I will be giving up Sauvignon Blanc or some other horrible disease!
Allocation system. You get x bottles of grange per y containers full of Rawsons Retreat Merlot you inflict on your customers?
Re: Academic Question: Is the 00 Grange really that rare?
Posted: Tue Jun 07, 2005 3:26 pm
by Guest
Craig(NZ) wrote:Its started to pop up in Auckland at NZ$395 in the supermarkets.
Seems such a different Supply vs Demand market / Price than Aussie
Totally academic question, as who in their right mind (aside from vertical collectors) would buy it but hey.
C.
A simple answer to a simple question.
Penfolds is owned by a publicly listed company whose aim is to maximise profits whilst maintaining brand strength.
I guess(someone might know) the cost of producing a bottle of Grange is no more than $A50. Therefore
anyprice above say $75 allowing for distribution costs represents good profits. Even NZ $395 represents an excellent profit margin.
Excess demand from consumers/collectors has driven up the price of Grange over the years. Penfolds would not clear any Grange volumes if they have mispriced - I don't think they have mispriced this wine - even in a poor vintage.
Posted: Tue Jun 07, 2005 4:26 pm
by Kieran
Poor but abundant vintages, like 97, find themselves being offered as a reward for VC cellar shares, or being offered for $199 with any of these straight dozens.
Kieran
Posted: Tue Jun 07, 2005 5:57 pm
by Gary W
97 is not a poor grange vintage. It is a good one - not great - but good.
GW
Posted: Tue Jun 07, 2005 6:10 pm
by Guest
Kieran Whats VC cellar shares?
Posted: Wed Jun 08, 2005 5:34 pm
by Craig(NZ).
I agree
They havent mispriced, same price as the 99 and yes very very tidy margins (ive seen the margins on a price file of one of the 2 major supermarkets and i can tell you they whack a good bonus margin% on Grange)
Just its cheap compared to the aussie offers ive seen
Posted: Wed Jun 08, 2005 6:08 pm
by bigkid
Guest,
In case Kieran doesn't get back to this post, VC cellar shares are 'shares' you earn through purchasing at Vintage Cellars. You get a single 'share' for each $500 spent. Each share is notionally worth $20. You can accrue them as a Vintage cellars Club Member. You used to be able to spend them on most any purchase, but over the last couple of years you have been restricted to certain products. xx number of shares can get you a Grange - but only the 1997 vintage is available with shares.
Regards,
Allan