Costco for Fine Wines?

[Rail Paul]

There's an article in the NY Times (Wednesday May 29) about Costco's aggressive moves in wine distribution. Once known as a jug and box distributor, the firm has become a feared competitor in fine wines. No wine is marked up more than 14%, some are a penny over wholesale. Some wine retailers will mark up wines 50%, the article says. (based on other threads, a lot more than 50%!!)

Amanda Hesser's article mentioned Alois Lageder travelled 200 miles for a 20 minute presentation to the Costco team. Costco sold a half billion dollars of wine in 2001, about 2.5% of all US retail and restaurant wine sales. It is described as one of the biggest sellers of Dom Perignon and Veuve Cliquot in the US.

The Wayne NJ store is compared to Angelbeck's in Upper Montclair, a high end, premium wine place, PJ in Manhattan, Astor Wines in Manhattan, and Zachy's in Scarsdale. Prices are net of NJ's 6% sales tax.

2000 Silverado Chard ($15.99, no carry, $19.99, 18.99, 19.99)

Veuve Cliquot Yellow Label is 69 cents over wholesale, and sells for $11 less, 1.30 less, $1.30 less, and $7 less

1999 Chat Palmer $2.50 less, 22.50 less, no carry, 12 less

The wine merchants correctly point out that Costco does not have cool cellars and secured custody of the wine as it passes from wine maker down the chain. Still, Angelbeck sent its own truck to Costco for 5 cases of Dom Perignon, and saved its customer a grand.

Based on my experience in the Wayne store, the choices aren't broad, but the prices are rock bottom. If I get over there tonight, I'll record and post prices.

[tommy]

i'd be curious what the Veuve Cliquot Yellow Label is going for.  it might be worth it for me to sign up just for that.

[Rail Paul]

$28.69 per the article, the NJ wholesale price is $28.

I'm going over there tonight. Would you like me to check any prices for you?

some firms sponsor "corporate memberships. when Dee was employed by a firm down on 23rd street, she got a membership for $5. Perhaps your employer participates in a similar arrangement

[Beachfan]

You need to know your prices, and it's probably local.  In California, where wine pricing is very competitive, they are lower on some but not on others.  Nonetheless, their selection is limited but interesting.  They have a bunch of 1999 Bordeaux including Lafite and Pavie.  The pricing seemed ok on the Lafite (maybe 3% less than elsewhere).  I didn't check the Pavie.

Past bargains have included Beacastel and Dominus.  And they are very good for everyday California Chards (Cambria's Catherine vineyards).  In fact, that's where they are usually the best priced.

[Rosie]

Thanks for the info Rail Paul. I  have been going to Costco on Rt 10 and they don't have wine there. I'll check out the Willowbrook location next time I need to stock up.

[Rail Paul]

I didn't get to Costco last night, they closed at 830. Will try again tonight...

Ravenswood Zin was $16.99 in Caldwell's SR Liquors last night, I'll see what Costco wants for it...

[tommy]

I didn't get to Costco last night, they closed at 830. Will try again tonight...

Ravenswood Zin was $16.99 in Caldwell's SR Liquors last night, I'll see what Costco wants for it...

paul, make sure you're comparing apples with apples.  ravenswood makes countless zins.  at 16.99, i'm pretty sure that wasn't their standard "vintners blend", but probably one of their county bottlings like "sonoma".  personally, i prefer "lodi", which is usually a couple of bucks less than sonoma and their others in the 13-20 dollar range.

[Rail Paul]

OK.  BTW, SR's price was $15.99. My error.

I noticed I had recorded the price on the same page I wrote  my notes on the french quarter place, which is why I was late for Costco...

[tommy]

ok paul, well let's just try to get your act together tonite, aye?  

[eatingmike]

I really like buying wine from my local CostCo.  The selection might be limited, but they sure cover a broad price range (sub-$10 to $100+), and from what I have seen, purchased, and researched, they carry wines that are almost always of high quality, whether in varietal character at the lower price points, or prestige and heritage at the higher price points. The storage point is valid but the local wine superstores merchandise the same way, and given how fast CostCo moves all their inventory, I don't think it's really a concern...  Obviously I'm a happy CostCo wine customer (and usually poorer after a visit)...

[Rail Paul]

Made it over to the Willowbrook Costco tonight (Friday). Costco is located on West Belt Blvd in Wayne NJ. Huge wine department, prob 500 different wines offered. Many people were buying cases.

Some sample items and prices:

Ravenswood Vintners blend 00 Zin   8.49

Ruffino Riserva Ducal Chi Class 98   14.99

Brgich Hills Fume 99   16.99

Rosemount Shiraz Estate 99   9.49

Ch S Michelle Col Vall Joh Ries 01  6.99

Benziger Fume Sonoma 00  8.99

Dry Creek Reserve Fume   99  13.49

Coppola Diamond Gold Chard 00   11.99

Coppola Diamond Green Syrah 00   11.99

Stag's Leap SLV 98    77.99

Penfold's Barossa Vall Shiraz 98    49.99

Ch S Jean Cinq Cepages 98   53.99

Coppola Black Label Claret 00   13.49

Cabreo Il Burgo   97    29.99

Modus Toscano 97     37.99

Benziger Sonoma Merlot   14.99

Fat Bastard Chard 01  7.49

Tattinger Artist (Matta) 92    118.99

Mumm Cordon Rouge  49.99

Raymond Eloquence (375ml)  27.99

Castello Del Terricolo Tassainia 98     48.99

Amarone Bertani 94   59.99

Dewars 1.75   30.49

Johnny Walker Black 1.75   49.99

Frangelico  16.99

Hennessey VS   22.48

Moet White Star  24.99

There was a huge section of after dinner stuff (B&B, Gran Marnier, etc) but i didn't go over there.

Tommy - the Ravenswood was the only product. Didn't have the stuff I bought at Shop Rite.

Rosie - no Turley, no Screaming Eagle

[ngatti]

There's an article in the NY Times (Wednesday May 29) about Costco's aggressive moves in wine distribution

Not strictly speaking Costco.  I believe the company is Western Beverage.  They have the contract in all the Costcos.  I think.  Very aggressive outfit out of Texas.  Techno savvy to the extent that all stores are live video linked to Hdqtrs via computer.  Big brother can always access the managers.  Real traditional team-building Rah-Rah management style.  

Brother in-law is GM of Hackensack store .  Loves working for 'em.

Nick

[ngatti]

some firms sponsor "corporate memberships. when Dee was employed by a firm down on 23rd street, she got a membership for $5. Perhaps your employer participates in a similar arrangement

I don't believe you need a Costco membership to shop in the liquor department.  Not in Jersey maybe.  But my only experience is Hackensack. I know for certain you don't need one there.  The liquor department has a separate entrance.

Nick

[Rail Paul]

Sample prices from the Costco in Wayne NJ. All are 750ml, and subject to 6% sales tax

Iron Horse Chard 01 Green Valley 20.89

Penfolds Yattarna Chard 99 51.99

Dom Perignon '93 99.99

Fetzer Cab 00 Valley Oaks 6.99

Ravenswood Vinters 00 7.99

Renwood Sierra Zin 99 9.49

Quintessa Red meritage 99 $80

Wild Horse Cab 00 12.49

Chimney Rock Stags leap Dist '99 34.79

Simi Alexander Valley Cab 43

Veuve Cliquot 29.99

more listings under spirits for scotch and brandies

[Really Nice!]

Penfolds Yattarna Chard 99  51.99

That's a very good price for Yattarna. I haven't seen the '99 out here (Seattle) yet.

A couple of prices based on my recollection at the Costco in Kirkland:

Chateau St. Jean Bob Young Chardonnay 2001 $21

Caymus Connundrum 2001 $19

Penfolds Grange 1997 $129 <- Long gone

Lafite Rothschild 1999 $129 <- Long gone

Dom Perignon 1995 $85

The only places where we can get spirits other than wine/beer are state-run stores.

Our sales tax is 8.3 percent.

[Stone]

I just saw these at Costco:

Mouton Rothschild, 2000 - $270

Haut Brion, 2000 - $ 250

Chateau Margaux, 2000 - $275.

Parker suggest that each of these are in the $300 range, and Wine Club (a local place in SF that has great prices) has them for well over $300.

Odd, don't you think?

[Fat Guy]

You don't read the NJ board enough.

[Craig Camp]

Costco is the largest wine buyer in the US and has low mark-ups. This, of course, makes for some good prices. I have actually never shopped at one, but I have always wondered how their storage conditions are for wines like this.

[Fat Guy]

The wines are displayed out on the retail floor, where the temperature is climate-controlled for human comfort. As far as I know, there is no storage -- that's the business model at Costco (everything is out, except maybe some perishables). Turnover is quite high.

[hollywood]

Here's an interesting online source. http://www.liquorama.net/subcatmfgprod.asp...&1=221&2=-1&6=1

[Dave the Cook]

In my experience, wine is like everything else at Costco: it's not likely to be a lot more expensive than anywhere else, but neither is Costco a guarantee of the best price in town. SOmetimes it is, sometimes it isn't.

In Atlanta anyway, Green's, Tower, Beverage Superstore and Cost Plus World Market pretty consistently beat Costco for price and selection.

I admit to this bias, however: I am never in the market for $300 wine.

[Fat Guy]

Costco (and by the way somebody please pull up the other threads on Costco wine) doesn't do particularly well in the $15-and-under category. I can almost always find better and more interesting wines at a local store when I'm shopping in that range (but . . . there are exceptions). But when you get into mid-priced and premium wines, Costco tends to have the best prices around. Not 100% of the time, but that's the general rule.

[viejo majadero]

Stone

If you are refering to the fact their prices are low --- it may be due to when they purchased futures and volume.

My local shop had futures at about $350.00 bottle but

Calvert and Woodly $300.00 bottle

K&L -- $300.

Macarthur Liquors $300

Viejo

[Stone]

All the goodies were gone by Monday night.

[Carema]

There is just something generally distasteful about buying First growth Bordeaux, or even your nightly drinking wine, and a 500 count box of tampons, and a sixteen pound bag of frozen chicken wings, and a treadmill all under the most unflattering of flourescent lights. But then frugality is not one of my qualities. maybe if it were I would have some money. Then I could go spend it at Cost Co. I also dislike getting run over by amped up teenagers driving forklifts. Call me kooky.