Decanter World Wine AwardsPenfolds Grange denies setting minimum retail price
- Thursday 28 July 2011
In an interview with The Drinks Business, Dearie was quoted as saying ‘Next year we will set a minimum price [for Grange] and you must hit that minimum price or you won’t get an allocation.’
The comment prompted comment suggesting that that would amount to price fixing.
This afternoon a spokesman for Dearie told Decanter.com his comment was misinterpreted, saying he was referring to a price being set for internal business units not for independent wine merchants.
'David Dearie's comment related solely to the pricing of Penfolds Luxury and Icon wines to its internal business units globally, as part of the company wide allocation process.'
He added, ‘Penfolds of course complies with all global competition laws that prohibit resale price maintenance.
‘The comment was clearly not made in relation to Penfolds' pricing to retail partners .'
Have your say!
Jerry
August 01 23:52
I don't know about you folks in the Southern Hemisphere, but it has always been my experience that as soon as a winery claims it is "maintaining price 'integrity'", some retailer drops the price to attract attention, sells out of the product, and wreaks havoc on those of us willing to maintain the so-called integrity. Heaven forbid a profit is made...!
Andrew Mcloughney
July 30 13:22
This is a bit of a storm in a teacup. Both Foster's and TWE (and any other sensible wine company) would review the price that various markets returned before setting their allocations for that market. It has absolutely nothing to do with retail pricing. It is a rational response to market performance.
Burke Reschke
July 29 08:22
In an industry with traditional values it is sad to see the caretaker of so many iconic Australian brands in the hands of someone with little business ethics.... Good luck to remaining shareholders, last one out turn the lights off!
WineStar
July 29 00:56
Sounds like a typical action by the company! They recently went and purchased back all Bin 389's here in Australia from one of the national chains! They are right into price fixing, and there should be laws about the high allocations of other wines they use to beat small retailers over the head with! get real Penfolds.