Wednesday, December 10, 2008

How much is too much for a bottle of Indiana wine?

Post idea shamelessly stolen from Michwine.

I have previously wrote about my experience at Kahn's last month here. I have already noted the shabby condition the Indiana section was in, but while I was there, I also noted something else-the price on the bottles.

The price of Indiana wine at Kahn's ranged from $6.99 to $22.99. Only two wines dared break the $20 price point-Chateau Thomas's Pinot Noir and Cabernet Sauvignon, both at the aforementioned $22.99. 7 others were $16.99 or higher. Most settled in the $9.99 to $12.99 range.

Just like in Michigan, if you go to an Indiana winery, you will see many wines north of the $16.99 price point. From what I have seen, customers don't seem to hesitate too much to buy wine at that price at the winery. Sure, cheaper wines are more popular, but to lovers of dry reds in particular, the prices are acceptable. Of course, the winemaker also profits more from sales at the winery.

So why don't we see more of these wines in Indiana liquor stores? Just like in Michigan-it's a pricing issue. If, as many wine writers like to say, we are in a golden age for wine and you never need to pay over $15 for a bottle of great wine, why pay more for an Indiana wine? I myself will rarely pay that much for any bottle of wine unless I actually go the winery. Even then, I have to really enjoy the wine (and even then, the salesman needs to be pretty good).

I do disagree with one point in the Michwine article. In Michigan, the retail sweet spot is described as between $11.99 to $15.99. I think Indiana's is lower-around $8.99 to $12.99. That's not all bad news-a few years ago, I would have said that asking above $10 or $11 was pushing it.

As quality goes up, so will acceptable prices.

2 comments:

Anonymous said...

Charles, permission gladly granted to steal the post idea. Two additional thoughts since I wrote it a few weeks back:

(1) Several retailers have pointed out to me that they have to "hand-sell" higher-priced Michigan wines, because they lack the reviews and WS, WA or WE shelf talkers to slap on the racks. If the store doesn't have enough staff, or staff with enough knowledge, they can't sell the wines and therefore won't stock them.

(2) Consumers still have a hangover from years past, when too many Michigan (and, I suspect, Inidana) winemakers either hadn't quite mastered their art, or were content to bottle and release their mistakes. If you don't quite trust the quality inside, you're a lot less likely to risk $20 than $9.99.

Joel

Anonymous said...

I love your blog and read it twice daily - once at the library and again when I am at home. Keep up the good work. I love Indiana wine.