Today a reasonably reliable source in the Loire has told me that some Sancerre producers are seeking to raise their prices. Apparently it is some smaller, less well-known producers who think that this is a good moment to up the price – perhaps to make up for a short vintage?
Producers, who think now is a good time to raise prices, may well find themselves crucified – economically
If this is correct, then they are likely to be in for a nasty shock. The larger Sancerre producers with an international perspective will be only too aware that with the world in economic crisis the last thing any professional buyer, whether for the home or export markets, will be an increase in price. It doesn’t have to be Sancerre there are any number of good Sauvignon Blancs from elsewhere in the Loire, France and les pays étrangers.
This would be a very--very bad move. In certain cases, I think that some Sancerre is already way over priced. And, as a person in the retial wine biz, I have found it to be quite simple to sway a customer away from a average $25-$30 Sancerre blanc to a stellar Mentou,Quincy, Touraine or Cheverny blanc
ReplyDeleteIn the old days, Sancerre was the affordable house wine in a Parisian bistro.
ReplyDeleteThen the inevitable happened. The price of Sancerre went up and up...
Between the mid-70's and the mid-80's, consumption of white Sancerre almost doubled. As consumption in France of white wine increased dramatically in the eighties, a lot more Sancerre went around, too, and prices rocketed.
The French blamed the price increases on the new markets in the USA where the white-wine craze started before it made its way to France and the rest of Europe.
Given the fact that the tidal wave that is today's credit crunch started on ‘the other’ side of the Ocean, it wouldn't surprise me if now, in a reversal of the scenario, first American demand for Sancerre would drop.
I guess it would be interesting to learn who the big transatlantic exporting Sancerre producers are and if they have any plans in this respect?
Thanks Georges and Mike.
ReplyDeleteI'm pretty sure that Sancerre producers with an international perspective will not be considering price rises. It is more the smaller, less savvy producer. Equally I don't know how widespread the desire to raise prices is.