Tuesday, February 8, 2011

stars, constellations and business in wine part 1

Wine is getting a tough business. At least  for the growers, importers and retailers it's like trying to find your car keys from a bucket full of... or better yet an age-old outhouse that has never been emptied and you ain't the first one that has dropped your crap and keys to your Porsche.


For the growers it is getting harsh because of climate warming. The need is increasing to plant irrigation systems or/and replant with different varieties for the (near) future. Let's not forget droughts and floods also the earthquakes and fires which damage the current year. Vintage variation is greater than ever? Where to sell the wine with this glut and prices cloying with record high prices of a bottle of wine while other can't even sacrifice their wines for cheaper than dirt.


Importers are having always having worse times because they are the intermediary between growers and retailers at least here in Finland. The oversupply of grapes and stagnant growth of consumptions keeps the prices shallow. Retailers are also experiencing difficult times as the consumption isn't really growing that much and out of tens of thousands "brands" what the people want to buy? There's just too many shelf square meters that have to be used for wine that doesn't make profit but you really can't cut up the shelf space without diminishing the selection. The monopolies are experiencing troubled times when allegations of price and range fixing are trying to be avoided as the only news about the monopolies tend to be bad news. The connotation of monopoly is fixed to be negative and the worse news are constantly dug deeper.


There's a need for a hero. Who can save the industry? Does it need a savor or saving? Casualties are those who caused the whole thing? From turmoil to tomorrow.

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