Wineries and Vanity - Could I Be Wrong? - Page 3

Author: Nathan Frye, CWE, CS, CSS
Published: October 25, 2011 at 9:00 pm
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Why!?

I asked this question to a wine broker not too long ago (wine brokers are those who represent one or more wineries and act as a liaison between the winery and wine wholesaler, often offering sales support and other benefits), and the broker said that it was the wineries themselves who make restaurants a priority. Regardless of the fact that retailers sell the vast majority of most wineries’ products, those who own wineries choose to offer price breaks to their wholesalers to pass along to restaurants. Not to retailers.

Does this make rational business sense? Restaurants sell less wine, sell wine at higher prices with much higher mark-ups, and sell wine to far fewer people than retailers, but wineries direct their wine wholesalers to give restaurants preferred pricing while thumbing their noses at retailers…the same retailers whose wine sales to the consumer are keeping those wineries viable as business entities.

Why would wineries do this, you ask? Vanity, I say. They crave the opportunity to say “our wines are poured at Blah de Blah restaurant, don’t you think we’re the bee’s knees?” and have someone respond “yes…yes, you are.” Vanity. What else could it be? You tell me.

 
 

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Article Author: Nathan Frye, CWE, CS, CSS

Nathan began his career in the alcohol beverage industry at age twenty-one as the beer buyer at a wine and spirits shop in Boulder, Colorado. After several years spent cultivating an informal wine appreciation he firmly affixed his wine-related thinking …

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