IF THERE IS ONE subject guaranteed to get readers writing and e-mailing, it is supermarket prices, and half-priced wine in particular. Some of you find it confusing, others plain annoying. I don’t write a huge amount about special-offer wines for several reasons: they rarely fit into the specific subject I am writing about; samples I receive tend to arrive too late for inclusion; and it is rare to find the most interesting wines being promoted. But overall, like many of you, I am suspicious of many offers. Walk along the wine shelves of any supermarket and you will find half-price wines, “bogofs” (buy one get one free), three for the price of two, 30 per cent off, and various others. If it annoys so many people, why do the supermarkets persist in running these specials?
Because they work, is the obvious answer. In the UK, it is estimated that 70 per cent of supermarket wines are now sold as part of some kind of promotion. Richard Moriarty of Superquinn, one of the few wine buyers willing to talk to me about this, says that 50 per cent is nearer the mark for Superquinn. “All of our consumer research indicates very clearly that people want special prices and good value at particular price points; there is overwhelming evidence that our customers like half-price wines too,” says Moriarty. Apparently multiples in the UK are finding it increasingly difficult to sell anything else.
There is no doubt that wine prices have become much more competitive over the past year. This is certainly good for the consumer, although sadly the range on offer has become much smaller. Some of these offers are genuine and offer amazing value. But it is easy to make anything half its normal price if you start off with vastly inflated margins. There may be a few genuine half-price wines on the shelves from time to time, but the vast majority have been artificially priced upwards with the sole aim of discounting later. Remember that margins on wine are generally about 30 per cent, so a retailer is losing money on a genuine half-price wine. In fact, the major retailers often promote the same wines at half price several times a year.
Is it hard to spot the dud half-price wines? Before you buy a bottle, ask yourself how many Rioja Crianzas you see at €19.99, how many Chardonnay Vin de Pays d’Oc at €14, and how many unknown Chilean Reservas at €18? Many of these represent very good value at sale price, as the retailer may be selling below cost, or have cut margins to the bone. But they are not half-price. Taste is the ultimate arbiter. When you drink your bottle, ask yourself if you would have been happy paying twice the price. If not, then the likelihood is that nobody else would either.
The two German discount stores, Aldi and Lidl, are less inclined to mount major promotions, and work on the continental EDLP (every day lower prices) system. A Lidl spokesperson commented that while they occasionally run promotions, “our policy is to offer the lowest possible prices at all times”. Richard Moriarty says Superquinn also uses EDLP at times. “Our new Classic Range is always the same price, and it is doing really well; customers can recognise value for money. I reckon shoppers have a tick list in their heads – a wine needs to get a certain number of ticks before it is bought. The Classic Range offers price, packaging, and name recognition, therefore it works for our customers.”
There is a question as to who actually pays for these promotions. There have been calls recently for the Government to ban “hello money”, whereby a supplier is required to pay money to get a product listed with a multiple. However, it is not hello money that irritates wine suppliers – it is the constant demands for “support” or AP (advertising and promotion).
Once you have been listed, you will still be asked to contribute further. This support can be used to lower prices, defray advertising and other promotional costs, to give staff and customer tastings, and for a host of other purposes. I understand that one major brand is happy to offer major retailers a sum of money annuallly to have its wines strategically placed in a group in the best part of the shelf (eye-level or just below). Others will be asked to pay for floor space during promotions or the all-important Christmas period.
Why do producers do this? The power balance between supplier and buyer has been steadily shifting in favour of the multiples for the last decade or more. They sell a larger and larger percentage of wines. If you are a big producer, you cannot afford to withdraw your wines. If you do not agree to participate in periodic promotions, you will lose out on sales and the best positions. It certainly doesn’t help the small and medium-sized producers either, who find themselves increasingly being squeezed out.
The recent moves by Government to regulate the sale of alcohol may put a stop to all promotional activity. At one stage it was proposed to ban discounts that encouraged excess alcohol consumption. As this could theoretically include all discounts, the trade as a whole was very concerned; 10 per cent off for buying a case of wine could be construed as encouraging excess consumption, for instance. This part of the 2008 Liquor Act was passed, but has not yet been put into force.
The supermarkets have signed up to a voluntary code covering the sale of alcohol, with the exception of Dunnes Stores, who say they will abide by it but haven’t officially signed up. This does not include discounting, however, so for the moment those half-price wines stay with us.
ON THE GRAPEVINE
Further to my article on wine courses, a number of new contacts have come to light. Wine writer Matthew Nugent will continue his successful series of informal wine talks at The Hole in the Wall in Dublin 7. Tel: 01-8389491, e-mail winenow@gmail.com.
Tindal Wine Merchants will run a series of WSET-approved courses in Dublin this autumn, at various levels. E-mail sales@tindalwine.com.
Dún Laoghaire College of Further Education is running its wine-appreciation course this year over 10 weeks, beginning Wednesday, September 23rd, from 7.30pm-9.30pm (€180, including wines). The course is run by Eddie O'Riordan. Tel: 01-2809676
In Limerick, Paul Williams is offering a range of wine courses (see www.kitchenrange.ie). Tel: 087-6557596.
In Co Cork, Master your Knowledge of Wine takes place in Carrigaline Community School, starting September 21st, tutored by Joe Karwig. Tel: 021-4373767, e-mail adulted@carrigcs.ie.
Jack Barrett of Woodstock to Rootstock Wine Courses and Tours continues his programme of wine courses, a mix of basic, advanced and specialised, in September. woodstocktorootstock@gmail.com
The autumn French wine sale at Superquinn is something of an institution in parts of the country. Having tasted my way through the entire range, I can tell you that there are plenty of bargains to be had.
Among the whites, the fresh, crisp, dry Domaine Begude Chardonnay is great value at €10.65, and a steal at €8; I love the SQ Savennières (down to €15), an exciting mix of honey and lemon, perfect for the more adventurous.
The selection of reds is even better. The Classic Côtes du Rhône (€7) is one the best-value reds in the country, although the clove-scented Corbières Le Fournas is equally good at the same price; the Domaine Cristia Grenache (€8) has featured in this column before, but the same producer's big juicy Côtes du Ventoux (€8) is even better value. I would also be tempted by both the Beaujolais Villages and Fleurie. Three other reds got me really excited: the stunning, cool pure Madiran Le Grand Perron (€12) which would be perfect with steak; the deliciously spicy Collioure (€11); and the SQ Bandol (€15), which is a brilliant, big, herby, meaty wine.
There are other goodies, too: the Vacqueyras Domaine de la Brunely has wonderful ripe cherry fruits, and Bordeaux-lovers will be happy to pay €13 for the soft, leafy Château Haut-Lagrange. The sale runs from September 16th to October 13th.
SIX GREAT SUPERMARKET WINES
The multiples are often criticised for lacking adventure in the range they offer. With this in mind, I chose six slightly offbeat wines, each from a different supermarket.
Vignes de St Pierre Vermentino/Sauvignon Blanc 2008 Vin de Pays d'Oc, 12.5%, €5.99Not the most sophisticated wine, but a refreshing, crisp, dry white, with some crunchy apple fruits and plenty of zing. Possibly a bit too acidic for a party, but great with finger food or anything fishy. Stockist: Aldi
Baturrica Tarragona Reserva 2004, 13%, €6.49Light, developed spicy fruit and relatively smooth. It may lack a bit of real concentration, but a good inexpensive substitute for Rioja (in fact I have tasted far worse from Rioja). Stockist: Lidl
Bonarda Espiritu de Argentina, Mendoza 2007, 13%, €8.99Medium-bodied with nice bouncy, refreshing damson fruits, and a rounded, easy finish. A pretty good all-rounder with or without food. Stockist: SuperValu
Otto Bestué Finca Rableros Tempranillo-Cabernet Sauvignon Somontano 2006, 13.5%, €10.79A long-time favourite of mine, this is a relatively light elegant red, with more than a passing resemblance to Bordeaux, although it does have an extra kick. Medium-bodied blackberries and spice with a lightly tannic finish. Try it with slow roasted shoulder of lamb. Stockist: Dunnes Stores
Collioure, Cuvée des Peintres, l'Abbé Rous 2007, 13.5%, €10.99Collioure is a very pretty town on the French Mediterranean coast, much loved by painters in the past. It also makes some very good wines. One of my stars in a recent Superquinn tasting, this is a delicious, smooth, easy wine with lovely warm, spicy fruit, very well-priced at €10.99. Try it with beef stew. Stockist: Superquinn
Tesco's Finest Joel Peterson Zinfandel, California 2006, 14.5%, €11.99Peterson was one of the standard-bearers for Zinfandel long before it became fashionable. This wine, made by the Ravenswood winery, has nice big, swarthy ripe loganberry and cassis fruits. Hearty and rich, this would be perfect for barbecues and beef. Given the difficulty in getting anything decent out of California, this is very good indeed. Stockist: Tesco