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is this a hint as to you why you've never served me a Sec 1er Trie ?
In terms of supply vs. demand, I think Coche is in a Screagle-type situation, just substitute importers/distributors for consumers. The problem arises for wineries in less demand and higher production, when they switch from (for example) 50 distributor buyers and 5000 direct consumers to 10 distributor buyers and 1000 direct consumers, and the top 5 distributors are taking most of the wine. Then comes the day that there is a downturn in the market for the #1 distributor plus a convenient "bad" vintage, and they say "we can't sell this stuff without some price cuts on your end"...originally posted by SFJoe:
Christian,originally posted by Christian Miller (CMM):
Economically speaking, selling to fewer and larger buyers generally puts downward pressure on a winery's prices, not upwards. Of course, those larger distributors might just jack up their margins if they think the market will bear it, so retail prices can still increase. But when you have a famous property of limited production, renowned for quality, the commercially savvier thing to do IMHO is to spread your risk and limit your buyers' leverage by having more of them. Cult wines that are mostly or all sold by mailing list are the ultimate version of this.
You raise interesting points. There is no doubt that the Screaming Eagle model is really the best, but it requires a proper alignment of many planets, and is a bit like hoping your kid grows up to a great career with the Lakers and buys you a nice house. For everyone else, your words about diversification ring true, certainly. But I wonder whether how the price the typical high end French winery gives their retail customers compares to what they charge the big ones. Does Coche give Kermit a big discount compared to his longtime customers? I can't for the life of me imagine why he would. But of course many noneconomic factors enter in...
Richard Kelley, again:originally posted by Robert Dentice:
Benjamin Joliveau, she noted, has been working at the estate for four years.
Sold.originally posted by Yixin:
Thank goodness we're operating in different markets; Richards Walford are very professional, and Kelley is very knowledgeable about the Loire.
BBR is your competition, no? You hoping to get bought out, too?originally posted by Yixin:
This could be really interesting. BBR are opening in Singapore.
Whoa. Ong/Kelley cage match.originally posted by Yixin:
This could be really interesting. BBR are opening in Singapore.
originally posted by SFJoe:
Whoa. Ong/Kelley cage match.originally posted by Yixin:
This could be really interesting. BBR are opening in Singapore.
Ticket prices are through the roof!
originally posted by Claude Kolm:
BBR is your competition, no? You hoping to get bought out, too?originally posted by Yixin:
This could be really interesting. BBR are opening in Singapore.
originally posted by SFJoe:
Whoa. Ong/Kelley cage match.originally posted by Yixin:
This could be really interesting. BBR are opening in Singapore.
Ticket prices are through the roof!
Wow, no flies on Claude.originally posted by Claude Kolm:
originally posted by SFJoe:
Whoa. Ong/Kelley cage match.originally posted by Yixin:
This could be really interesting. BBR are opening in Singapore.
Ticket prices are through the roof!
You aware that Kelley left R-W last October?