The Agony and the Ecstasy: Cheap Wine

Jan 22, 2008 1 Replies

Should wine stores be trying to educate the palettes of consumers so they will buy more expensive wine? Should more expensive wine get more shelf space than cheap wine?



These are some burning questions right now. I don't know how many people from Ontario check this site, but there is an interesting flap going on in the province right now about the LCBO (which has a monopoly of liquor sales) and it's policy toward cheap wine. The LCBO had a policy of trying to promote pricey wines at the expense of its cheaper cousins, but recent public pressure made it retreat from this position.



A re-telling of the full story is here with my thoughts:



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Matthew


. . Free market at work. The wine store should be able to sell whatever the heck it wants to sell, at whatever price. If there aren't enough customers to support "pricey" wines, then they either offer cheaper wines, or go out of business.

Besides, aren't you going to get more traffic in your stores by offering wine at all price levels? It shouldn't be that hard to talk the guy buying the $6 Black Swan into a $9 Berringer.

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