Friday, January 01, 2010

Champagne Blues!

Several articles this week described the rampant price cutting taking place in the champagne market, including among premium brands. Are we surprised? Not at all! Will an economic recovery endcthe discounting? Not necessarily! In fact, this price cutting is not simply about the recession. Over the past decade, more and more wine has been sold in large national and global grocery chains, wholesale clubs, and the like. This increase in buyer power, relative to the days of retailing wine through mom and pop stores, is a key driver in squeezing winery margins and causing rampant discounting. Champagne producers, beware. Consumers, rejoice!

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