Imported Wine Price Increases Continue

[Craig Camp]

The dollar's falloff, with the encouragement of the Bush administration, has been precipitous. The Australian dollar was worth 51 U.S. cents on Jan. 1, 2002, 56 U.S. cents on Jan. 1, 2003 and jumped to 75 U.S. cents on Jan. 1, 2004, says Lynn Reaser, chief economist with Banc of America Capital Management in St. Louis.

[budrichard]

I can tell you that i have already curtailed any European purchases until the $ gains significantly against the Euro. Wine will be no different. -Dick

[Mark Sommelier]

Most of the French and German wine I am receiving now was paid for by the importers last year when the dollar was slightly stronger. The increases will begin to be obvious with the 2002-2003 vintages.

[Craig Camp]

Mark is right - there are vast warehouses full of unsold European wines purchased by importers at old exchange rates and these are often being discounted to reduce inventory. There is no reason not to buy European wines now.

When these new vintages come out that may be another matter.