Wine Prices Fall Sharply

The economic downturn now also affects the prices of wine, according to the BBC (on its website). The prices of top wines tumbled in the last quarter. For example, the price of Lafitte Rothschild since the summer dropped by 25%, reports the British merchant Berry Brothers and Rudd (BBR). BBR suspects that prices have not yet bottomed out. Collectors that heavily invested in the 2005 vintage are now saddled with heavy losses. The decline is worldwide. According to BBR the demand from Asia fell sharply in the last quarter. In the United Kingdom the trend is also visible in supermarkets. Sales of wines in the category 5-6 pounds has fallen significantly, while more wines from less than 5 pounds are sold. Supermarkets responded by lowering prices and by expanding the range of super cheap wines. The same trend is also visible online. According to Brian Dougherty, CEO of My Wines Direct, the average price of the top selling wines on his website have dropped by 2 dollars from 12,93 tot 10,87 dollars.
The growing crisis was also felt at the G20 summit this weekend. No Petrus or Lafitte for the world leaders gathered in Washington to discuss the economic crisis. In stead a Landmark Chardonnay “Damaris Reserve” 2006 (white) and a Shafer Hillside Select 2003 (red) were served. These are still expensive bottles, but a lot cheaper than the Bordeaux and Bourgognes that are normally served at such events.