Weak dollar hits U.S. wine importers

[Craig Camp]

Weak dollar hits U.S. wine importers' profits

[Lady T]

Heh. Looks like the everyday house wines at my place are gonna be domestic for the back end of 2003. Nuts. Just when the availability and prices were taking me into more international waters...

Ah well.

[Rail Paul]

Craig -

thanks for the link. curiously, the Wall Street Journal had an article last week which suggested the grape gluts in California and France would probably minimize the ability of many importers to raise prices to dollar based purchasers, as producers attempt to move volumes to maintain cash flow.

with steep competition in the $15 - $50 US segment, their experts felt only the most respected brands could avoid discounting. The very strong Euro doesn't make exports to the US any easier for Italy, Spain, and France

Paul

[baruch]

curiously, when the $ was strong & we had a strong economy, but with an overseas wine glut;

keep gouging & keep french wines high!!!

now, when the US economy is weak, with the same wine glut, but now a strong €, prices cannot be reduced for fear of shrinking profit margins from already high levels.

gotta love that intuitive reasoning!!

[Bill Klapp]

Weak dollar hits Bill Klapp! My wife is in Italy with all of our credit cards, and I sit here helplessly, going on-line now and again and watching the numbers climb!

[Craig Camp]

Weak dollar hits Bill Klapp!  My wife is in Italy with all of our credit cards, and I sit here helplessly, going on-line now and again and watching the numbers climb!

Don't watch. It is all you can do.

["T"]

Hate to say it but, now you know how us Canadians feel.

[Bill Klapp]

Yes, but you Canadians always bear it with such grace. We're Americans. we will probably occupy Western Europe if the dollar doesn't firm up soon. Give Bordeaux a "Napa East" appellation. That sort of thing...

[eat2much]

How much do you want to bet that the prices for California wines will not drop by one cent here in Canada despite our newfound "buying power"?

[Beachfan]

The article underestimates what I've seen in the market, espcially for Chateauneuf du Pape. Prices for 2001 futures are up closer to 20%.

[viejo majadero]

When there is a glut -- don't buy futures -- unless there is some rarity you want to lock in to guarantee ownership.

Viejo

[Rail Paul]

The Washington Times has an article this weekend on the subject.

Short take: Sales of "top" French wines down in the US about 9% in April compared to last year. Euro and displeasure at the French bashing of the US. Wine sales in the first quarter were up 40% over the same Q in 2002.

I was in the Calvert Woodley last Saturday and it's obvious they are doing a lot of promotion, but prices didn't seem notably aggresive to me. They're not giving away the good stuff.

KRC Research in the Washington Times

[Craig Camp]

The article underestimates what I've seen in the market, espcially for Chateauneuf du Pape.  Prices for 2001 futures are up closer to 20%.

What the article fails to take into account are the buying patterns of American wholesalers. Wholesalers would have purchased inventories for the 2002 holiday season and the early part of 2003 in the late summer of 2002 and taken delivery in fall. Normally they do not restock on imports until the weather improves and their sales improve in the spring. That means many importers are looking at a 30% increase in pricing from when they brought in their last orders in 2002 to when they bring in their first orders of 2003.

[robert brown]

Greenback 1.1692.

Looney 1.3559