Bankruptcies: key to california value?

[Dr Vino]

DeLoach Vineyards of Sonoma filed chapter 11 earlier this year. Others have too (Liparita Cellars, Sonoma Creek Winery and Buchanan Cellars to name a few from the north coast). DeLoach wines are currently on sale for as much as 60% off at a nearby shop.

Are bankrupt wineries your ticket to California values? Seen any other good discounts?

[Carolyn Tillie]

It doesn't mean much -- Liparita, for example, is only restructuring but not going out of business. So their wine is still being produced (and still fabulous). They are, however, doing private verticals and are discounting to those who go to the tastings. They are getting rid of some bulk wine so there will be some deals out there, if you hunt.

[Carema]

Are bankrupt wineries your ticket to California values? Seen any other good discounts?

Actually the key to good value is when one distributor 'dumps' a brand after another picks them up. The more acrimonious the split- the bigger the discounts. Good retailers use this to their advantage, Ask your local wine person about what was dumped this week

[Phil Ward]

Yes, the changing of distributors can lead to a "dump" and we are also seeing great pricing on wines from DeLoach and also Fife (filed Chapter 11 as well.) This could be due to too much dist. inventory, too much winery inventory or a possible change in marketing strategy. I know many fine wine retailers and restauranteurs who have taken advantage of the pricing on these wines as well as others (Matanzas in '02 had serious price drops on Chard and Merlot for On premise accts. According to the story, Mr. Jackson wanted to rid himself of the last of the old regime wines and re-align pricing and style for his "own" wines.)

[Mark Sommelier]

Yes, the changing of distributors can lead to a "dump" and we are also seeing great pricing on wines from DeLoach and also Fife (filed Chapter 11 as well.) This could be due to too much dist. inventory, too much winery inventory or a possible change in marketing strategy. I know many fine wine retailers and restauranteurs who have taken advantage of the pricing on these wines as well as others (Matanzas in '02 had serious price drops on Chard and Merlot for On premise accts. According to the story, Mr. Jackson wanted to rid himself of the last of the old regime wines and re-align pricing and style for his "own" wines.)

I read recently that Deloach was approached by Boisset for acquisition. Haven't heard yet if the bankruptcy court approved the sale. In regards Matanzas rolling down the prices in '02 (they actually went down by 33%), many wineries had trouble moving inventory in the months after 9/11 when high-end restaurant business went into a general slump. The price roll-back was one way move boxes.

[russ parsons]

Hmm, I did notice DeLoach end-stacked at trader joe's last night. I'm not sure what they had: I remember Pinot Gris, I think Merlot and maybe something else not Cab or Zin. Prices were $6.99 to $9.99, as I recall.

[Dr Vino]

Thanks for your replies. I guess the dreaded three-tier system of the US makes it so that a bankruptcy on the winery side does not mean that the consumers benefit. Perhaps we have to wait for somebody closer to our end--such as a dsitributor or a retailer--to go out of business. But do distributors ever go out of business? Seems like they just get eaten up by another one.

Anyway, we can console ourselves with good sales at many wine shops this month!

Cheers.