Today is the day for the release of the much lauded 1998 Grange which also received 99 points for great man himself, Mr R Parker Jr.

Due to the increased penetration of Penfolds in the US market, the Australian allocation of Grange is way down. There are two other factors that will contribute and make the wine very scare and expensive in Australia.

The first is that because 1998 was such a fantastic vintage, there will be an increased demand for the wine from wine lovers that wish to cellar it for eventual consumption. (This thought has even more than briefly crossed my mind.) The second is that there will be an incredible demand from those that think they can make their fortune from buying a few to resell in the future.

Will they make money? Undoubtedly! But is it worth the effort? In my opinion no! It will hit the streets at $400 a bottle and will quickly rise to $500 and there it will stay for many years. The majority of the money will be made by Southcorp and the retailers before the punters get hold of it. The retailers will make about 65% mark up (net) on the wine and few will be silly enough to discount it and if they do it won’t be for long.

This might be one of the greatest wines this country has produced but is it worth a huge premium - about 300% (or $300) just to say “I have a bottle of 98 Grange?” There are many wines that in the long term will be as good or 98% as good for less than a third of the cost of this wine. Some wines may even be better and there will only be one thing missing, the thing you are paying about $300 for – the label.

Can you drink the label?

End of reality check. Now it’s up to you.

Cheers

Ric

Copyright © Ric Einstein 2003