Enobytes Wine Blog

After reading comments left regarding a recent post about restaurant wine lists and corkage fees I felt compelled to make a comment of my own.

First, I would like to say I appreciate the fact someone actually reads my blog. I was even more elated to find out I am not the only one that feels on-premise wine sales are pushing the limits lately with profit margins and ridiculous corkage fees. Now I would like to chime in on retail prices and mark ups. I have previously mentioned the industry norm was 25% profit at retail stores. I was being generous.

Take for example when New Seasons sells Viu Manet Malbec at $5.99 a bottle. A 20% case discount would bring the price to $4.80 a bottle and the wholesaler only charges $4.19 with a net profit of 14% for the retailer. This is an extreme example, but I think you know where I am going here.

There are tighter margins than that on popular wines. Sure, there might be a few wines in retail that are marked up 60% but if they are, I suggest you keep on shopping and I mean somewhere else.

To solidify the point, Jennifer Waters recently interviewed Michael Mondavi on MarketWatch, a financial-news website operated by the Wall Street Journal on 4-08-08. In this interview, Mondavi commented on the very subject of my post I wrote back in March, "No Thanks the Wine List will not be Necessary Tonight", which appeared on winebusiness.com two weeks after it appeared on Oregon Live.

Mr. Mondavi announces folks will spend $70 a bottle for wine to be consumed at home instead of at a restaurant. I believe I originally went with a $15 -$25 a bottle price, which seems like a more accurate figure, but I’m sure he runs in social circles that can absorb a $70 expenditure with stride. Split the difference and treat yourself to a great Willamette Valley

Pinot Noir, Blanc or Gris; there are a lot of winners out there at $40 a bottle or less. Maybe try one of the Dijon Clone Chardonnay’s unless you are from the ABC crowd.

With the weather here becoming suitable to get out and visit our wineries, I urge all y’all to do just that.

~ Pamela Heiligenthal & Marc Hinton

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