Penfolds outrages merchants with 'slap in the face' price hikes

I recall buying this wine for less than $9 i(US) here in the states and it was my goto wine for quite some time. I even have a few bottles in the cellar. Last week I noticed the price had gone from the high 20s (last year) to $49.95.... Since I don't see a corresponding increase in size and doubt a corresponding increase in quality (and no, u don't get a free wine opener either), I must say I am disappointed and will have to pass on Penfolds until sanity returns. Shame

What a shame for such an icon of Australia which put Aussie wines on the map.Maybe TWE should focus on the rest of the world for their wines and not keep pushing Asia. Remember South America which is developing rapidly and very open to new wine trade.TWE needs to think ahead and be proud of the brand they represent.

Always been a big fan of several bins including 389. However, as price increaes purchases will substantially decrease. Wish Penfolds the best of luck, and hopefully, their bet on the Asian demand will continue... its hard to regain customers once they have left the fold.

A few comments come from people who don't know about what it takes to grow grapes and then sell the juice to the winearies. POINT BLANK no increase in grower prices (in some cases there has been a decrease) yet the RRP is increasing all the time. And as for the merchants, let's just say some are better than others and FWDC actually offers up a decent selection without the "dumping" practice offered up by others. Oh and let's not forget that Langtons now owned by Woolies naturally distorts pricing as well.

Penfolds is looking to further its profits within the Asian markets. They, like the Bordelais will price themselves out of the market and when the market drops, so will their sales. They should be adding Chinese characters to their bottles like Lafite did.

Penfolds is rapidly becoming the wine equivalent of Fosters Beer -ie. the rubbish we send overseas.

Wait untill they tell you that before you can buy their BIN range or their Grange you first have to invest in some other oblique range; an old Penfold's sales technique.

better to increase the price than to decrease the quality

There is no demand for Aussie wine in the US at the moment! Is there great demand elsewhere for Penfolds? Maybe the Chinese?

I wonder if stores will raise their prices or stop carrying it altogether.

I love the comment that "the increasing demand we are seeing is causing prices to increase".
They left out the bit about increased prices causing increased profits as well.

How sad. Increasing demand does not cause price rises; it merely allows a business to profit more if it chooses to do so. Such a decision carries long term risk however which Penfolds may come to see.

This is so very typical of big companies that own "wine brands" rather than being wine-makers. They are concerned more about profitability and gouging than they are about building a reputation. Penfolds is just another brand in the stable of the Australian company, Treasury Wines.

Can you blame Penfolds ? Though I must confess it's a bold move. But like anything, they will lose some customers, and gain others who are prepared to pay the higher price point. Whoever runs their marketing, really has a tall order on their hands.

And I assume these "loyal" retailers no longer carry classified growth Bordeaux, whose prices have more than trebled in 3 years? Give me a break, Penfolds top wines are some of the best in the world and are still a value at these prices.

I, for one, salute Penfolds' decision. The merchants are always going on about how they need to make the same margins as the previous year, with scant regard for the producers' margins which have been steadily shrinking for over a decade. The merchants created a monster by bombarding punters with cut-price deals (invariably paid for by producers) and now use those same punters as a justification for why normal market forces should not apply to wine. They may see wine as a commodity, but to many producers it is a way of life and if, on rare occasions, a producer finds itself able to repair some of the damage wrought on its business by greedy merchants, I say more power to them!