More hyperbole, more Price Hikes, More Marketing Blunders
Has Penfolds Grange priced itself out of the Market? That’s the heading of an email Tyson Stelzer sent out, on the occasion of Penfolds 2015 Collection Annual Release (October 15). It’s not the fault of Grange, of course, since no wine can determine its own price – Penfold’s owner TWE does that. Tyson’s next issue is this: ‘When Penfolds suddenly and brazenly jacked the price of Grange from $685 to $785 in 2013 in the wake of strong reviews for the 2008 vintage, the question on everyone’s lips was whether it would drop the price again in a weak vintage.’
Huon Hooke writes: ‘Some of us were wondering, as 2011 was such a terrible vintage weather-wise. Would there be a Grange at all? You may recall it was a summer and vintage when the rain simply didn’t stop falling. What was the wine like? I’m sworn to secrecy, but stay tuned!’
Do we really care what games they play with their luxury goods? No, but it’s all grist to the Penfolds PR Mill. Both writers were invited to Magill Estate to taste the 2015 collection of Icon and Bin wines, and presumably sworn to secrecy. Huon adds: ‘Unfortunately I can’t tell you about the wines for another three or four weeks because of the embargo.’ Tyson feels no such inhibitions, and shares his tasting notes freely with us (see below).
The price of Grange will not go up this year
That’s the good news. The bad news? TWE has pushed the price of Grange so high you’ll never get your money back. That’s why we keep giving this advice: ‘Never buy Grange at the time of its release.’ Why not? Because you can buy virtually any vintage of Grange, back to the early seventies, for less than the current retail price. ‘Except for exceptional and rare vintages,’ auctioneer Mark Wickman tells us, ‘most Grange sells between $300 and $500 and, yes, that is less than you pay for it on release.’
In other words, even when Grange is perfect, it’s overpriced on release. At the time of last year’s release, the verdict from the Adelaide Advertiser was: 2010 Penfolds Grange is a classic, but Bin 389 trumps it for a fraction of the cost. You can buy Bin 389 for one tenth of the price of Grange.
Playing in the Big League
‘Penfolds is no longer playing in an Australian price hierarchy,’ Tyson tells us, ‘and is increasingly, strategically and boldly playing in a global market … Chief Winemaker Peter Gago speaks excitedly about Penfolds featured alongside La Romanée Conti in Christies auction catalogues. He recently recalled to me holding court in the Grand Hotel in Bordeaux for four days, with breakfasts right through to dinners for the duration of Vinexpo in 2013.’ More Here.
More bad news on another front: TWE has hiked the price of Penfolds Bin 707 Cabernet Sauvignon 2013 up to $500 from $350 last year. That’s twice the average auction price for this wine – 2009 and older vintages are all around $220.
Source: Wickman’s Wine Database http://www.wickman.net.au/wines/wine-price-search.aspx?wid=11
Playing with Big Dollars
It looks like the folks at TWE have been reading my blog and taken my advice, which was to stop releasing one-offs at prices way above Grange (thus devaluing the star of the show) and to fill in the gap below Grange instead. A couple of years ago, there was a gulf of $500 between the $785 Grange and the rest of the collection. Last year, TWE cranked the prices for the Bin 707 and Bin 169 up to $350 but the gap was still enormous.
This year, with the Bin 169 Coonawarra Cabernet Sauvignon 2013 left on $350 and the 707 shoved up to $500, the line-up looks a bit more sensible even if the increase for the 707 is nearly 50% in one foul swoop as a former Prime Minister once put it.
There’s only one problem: a month ago, without any kind of fanfare, TWE released The Max Schubert Cabernet Shiraz 2012 for $450. Shouldn’t this new wine that’s dedicated to the great man sit above the Bin 707? Say at $500, with the 707 at $400? Tyson gives this red 96 points, same as the Bin 389, but adds that the wine ‘harks back to the toned shape and even elegance of his [Max’s] era at Penfolds. It is this which makes this wine special and unique in the Penfolds line up, a fitting commemoration and worthy of Schubert’s name.’
That’s the first time that a serious wine critic has put his finger on the Achilles heal of the modern Penfolds reds: they don’t resemble the wines Max Schubert used to make. They channel Rolls Royce instead of Aston Martin. They’re about power and sheer bulk, not about beauty or elegance. They’re clumsy and obvious, adorned with fancy gadgets to divert your attention from their clumsy lines.
Why is no one else taking Peter Gago to task for losing Max’s elegant design? Power without the bulk, flavour without the massive alcohol, richness without the super-ripe fruit. I had the good fortune to buy some Penfolds reds from the 1960s in the 1980s from a wine merchant who bought a whole cellar. Wines like 1964 Kalimna and Bin 389, 1966 St Henri and Grange of various years. The Granges leapt off the shelves, while my mate Reg and I carefully picked through the ‘lesser’ labels.
The Penfolds 2015 Collection – The Short Story
Tyson doesn’t mention the other 2 wines Penfolds released along with the $450 Cabernet Shiraz, also bearing Max’s name, at $50 and $35 respectively. Both of these are ordinary reds that sit alongside the growing list of Penfolds ordinary reds under $50. Looks like TWE is playing in the big league while its marketing people are playing with themselves. More HERE.
As usual, the best of this year’s collection are the Bin 389 Cabernet Shiraz 2013 (96 points), the St Henri Shiraz 2012 (97 points)and the Reserve Bin A Adelaide Hills Chardonnay 2014. You’ll be pleased to know they’re all still under $100 RRP, and that means they’ll all sell for $60 – $80 on the street.
If you’re St Henri fan, watch the big retailers on October 15 as they knock down the prices – heaven only knows why but a couple of years ago they discounted the brilliant 2010 St Henri down to $60 until it sold out hours later. Huon Hooke also loves the 2012 St Henri as you can see in his overview.
Bin 5 Eden Valley Riesling 2015 – $30 RRP. Tyson supports my observations of South Australian Rieslings from this vintage: ‘I’d like to see a little less ripeness and more subtle structure; some phenolic grip on the finish points toward an early-drinking style.’ 91 points.
Bin 311 Tumarumba Chardonnay 2014 – $40 RRP. Tyson talks about ‘the struck flint and charcuterie of Penfolds chardonnay craftsmanship, set against the white peach and grapefruit backdrop of Tumbarumba. It has purity of crystalline acid presence, tang and poise, with excellent line and length. He gives it 95 points but that grapefruit worries me.
Reserve Bin A Adelaide Hills Chardonnay 2014 – RRP $100. 96 points. A better buy than Yattarna, and most people find it easier to like. Expensive.
Yattarna Chardonnay 2013 – $150 RRP. 96 points. There are better, less over-wrought Chardies out there for a third of the price.
Bin 2 Shiraz Mataro 2013 – $30 RRP. 90 points. There are better SMs out there for less money.
Bin 138 Shiraz Grenache Mataro 2013 – $40 RRP. 94 points. An SM and a GSM, with an extra charge for the G. Too many Bins? Tyson calls it ‘a joyful and flamboyant blend of berry compote and exotic spice, backed by well balanced dark chocolate,’ and says it’s ready to drink.
Bin 28 Kalimna Shiraz 2013 – $40 RRP. 93 points. These days Kalimna Shiraz seems to come from every corner of South Australia except the Kalimna vineyard. A shadow of its former self.
Bin 128 Coonawarra Shiraz 2013 – $25 on the street. This wine was released months ago, and Tyson gives it 94 points. Could be worth checking out, but the terrific Wynns Coonawarra Shiraz 2013 is probably a better buy at less than half the price.
Bin 23 Adelaide Hills Pinot Noir 2014 – $40 RRP. 90 points. Not worth worrying about.
Bin 407 Cabernet Sauvignon 2013 – $80 RRP. 95 points. Another trip around SA to gather the berries, but this red can be a great wine – even the 2011 surprised me with its style and polish.
Bin 150 Marananga Shiraz 2013 – $80 RRP. 93 points. Another big, ripe Barossa Shiraz. Yawn.
Magill Estate Shiraz 2013 – $130 RRP, 94 points. Another expensive Shiraz from Penfolds.
The rest of the wines are in LaLa Land pricewise. The $175 RWT Shiraz 2013 scores 95 points, the Bin $350 169 Cabernet 2013 scores 96, and the $500 Bin 707 Cabernet 2013 scores 97. Grange looks like poor value with an almost $800 price tag and a score of 95. ‘This is unmistakably Grange,’says Tyson, ‘albeit against the backdrop of a lesser season, and one to drink before 2008, 2009 and 2010. It may be the least Grange since 2003, but it’s undeniably an admirable result for 2011.’
There you go.
Kim