BORDEAUX DEFINITELY SUFFERING
by SUZANNE MUSTACICH
Even as Chateau Lafite leads a surge for Bordeaux vintners in Asia, US retail prices for the same wines have skidded below wholesale cost as a major importer dumps stocks worth tens of millions of dollars.
US importer Diageo Chateau & Estate Wines (DC&E), a subsidiary of the British drinks giant Diageo, has abandoned Bordeaux wine after 35 years, aggressively liquidating its warehouse stock on an already shaky market.
A source within DC&E who asked to remain anonymous, blamed « enormous stocks » of unsold Bordeaux for their exodus. « It’s all about making money. The margins are getting thinner each year and Americans are trading down. » DC&E’s turbulent withdrawal, which has heated up in recent weeks, is having a « huge impact on the market, » Chris Adams, chief executive of Manhattan retailer Sherry Lehmann, told AFP. (suite…)