Monday, February 4, 2008

Explanation On How The Weak Dollar Raises Wine Prices

A recent survey of WineAccess customers taught us that our buyers are spending more and more on everyday wine, with the average purchase for most customers topping $20/bottle. It's easy to see why, given the dollar's plunge and the growth of the international market for fine wine. But, just because people are spending more than $20 doesn't mean they're happy about it.
It's not getting any easier. According to a survey we recently conducted, the average WineAccess customer is now spending more than $20/bottle for an everyday bottle of wine. It's not hard to figure out why. The dollar has dropped 60% against the Euro since the new European currency came into play. Typically, when you buy a wine from a local store, that bottle has touched two, three or even four companies before it arrives on the shelf, so a 60% increase at the source could mean an 80-90% increase in the store! Looking in California? Grape prices from quality vineyards in the better appellations (Napa, Sonoma, Santa Barbara County) are at all-time highs, making it nearly impossible to produce good wine for less than $30/bottle. Oregon? Washington? It's much the same.

Wine Access