Penfolds Coonawarra Claret Shiraz Cabernet (Magnum) 2009 (Coonawarra, SA)
14.5%, Cork, $notforsale
Source: Retail sample
www.penfolds.com
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| Penfolds Coonawarra ‘Claret’ Shiraz Cabernet (Magnum) 2009 |
It’s something of a special wine this – or at least it’s not actually available for commercial sale – with the wine offered as a ‘value add’ to those who purchase Penfolds Bin wines through independent Australian wine retailers.
From where I sit the purpose of a product like this appears to be twofold: Firstly, it keeps independent retailers happy, for it gives them a point of difference over the supermarket backed chains, with whom the indies can’t compete on price. Secondly, by offering something ‘not for sale’, that is so limited in number, they are gently nudging consumers into filling their wine fridges with Penfolds wines sooner rather than later.
In many ways it’s actually very clever marketing, particularly as the Bin range has taken something of a reputation hiding in recent years, with the supermarket-led discounting rendering the Penfolds RRPs as a running joke, even whilst these same RRPs jump significantly every year. What I’m guessing Penfolds are attempting to do is to reinject some value into the range again, perhaps by effectively moving the focus away from a straight, race-to-the-bottom, price driven annual release scenario and into a ‘what goodies will come up this year’.
What is interesting is the way that these magnums (for they are released only as magnums) are actually being supplied. Of particular note is that the magnums are not actually dispensed by retailers, with a particularly laborious claims process utilised instead. By doing this I’m assuming that Penfolds are attempting to stop retailers onselling the magnums, whilst also regulating the supply (which again is fair thinking, if overly controlling).
What is slightly grating about this method though is that not only are the magnums restricted to just one per household, but the delivery price is an erm, ‘fully priced’ $22 per magnum, with it all rubbed in by the fact that you’ll be lucky to actually see them delivered before mid June.
Regardless of the process however, it already appears that the whole, carefully controlled deal has allegedly blown up in Penfolds face, with both Dan Murphys and Vintage Cellars allegedly responding the best way they know how – by putting the Bin wines out at prices that are almost half of the (now almost mythical) RRPs. I’m only speculating that this is their motivation of course, but VC are even throwing in a Cellar Share and some free Riedel glasses just to rub it in…..
These prices are actually serious loss leaders even for the supermarkets, which just goes to show that they are being offered just to make a statement, particularly given that they are considerably lower even than said independents wholesale (so excluding tax) prices are and lower than last year. In my view this sort of pricing policy is really only serving to show who, allegedly, controls who in the liquor business.
To be completely honest it’s actually a pretty sad state of affairs, and really shows just how dangerous the supermarket duopoly is for wine businesses. With several friends working for Treasury Wine Estates as sales reps I feel sorry for them too, stuck in the middle of what is just a business power play. I also feel for the hardworking winemakers/vitis/cellar hands etc whom are still making good to great wines (particularly the Chardonnays), even though the wines are now just political (wine politics that is) footballs.
Speaking of good wines though, it’s time to talk about the wine itself, for out of all this messy business it’s actually really heartening to see that what is in the (attractively retro packaged) magnums is actually genuinely good booze. I think it might even be my favourite wine of the 2011 Penfolds Bin releases.
In the glass it pours rich, dark blood red, looking every bit a Penfolds wine. It smells like one too, with a pure, rich and generous nose of chocolate oak and purple fruit, carrying quite a bit of oak sweetness but also a cheeky brambly peppery edge (which looked properly Coonawarran). It’s still a very rich and ripe nose for Coonawarra though and noticeably riper than the 128 of the same vintage.
That follows on the palate too which is more Penfolds than it is Coonawarra, with that very rich, solid and hearty firmness that Pennies is all about. It’s a fraction too vanillan and sweet for real love right now, but with some nice fine tannins on the finish it’s probably going to be a pretty srmart wine in another 2-3 years time.
Speaking of those tannins, they’re actually quite a bit lighter than the 08 389 (also in this 2011 release), which suggests that this isn’t going to live as long. But what this wine lacks in outright power it makes up for in freshness, which I think actually led me to ultimately like this over the 389, and even after 24 hours in the glass it still looked pretty damn good, boding particularly well for the future.
To wrap it all up then I’m calling this a rather smart wine that anyone with a penchant for Penfolds wines will enjoy. Strictly speaking I’m not the biggest fan of the chunky, oaky and Penfolds brand® tannin finished style but I can absolutely appreciate the inherent quality on hand. The politics behind this wine though are far less clear and attractive………18.2/93
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14 Comments
Nice insight and well worded Andrew. Sums up many thoughts of mine on this release day. I have to doubt that they really are a loss leader though for the big chains even at today's prices?? Cheers. Tim.
Great article sir …
It is a pretty sorry state of affairs as you say and rightly disappointing for all those involved in actually making the wines.
Any response from those 'Vintrepreneurs' at Treasury Wine Estates? As 'custodians' of premium terroir, is it a good reflection of the brand?
Thanks Dan and Tim,
I'd be really interested to hear TWEs response actually, for I think they are in something of a difficult position. On the one hand they obviously want to wrestle the pricing control back from the supermarkets as it is unhealthy for the brand, yet on the other they need to keep the supermarkets on side so they'll keep selling shedloads of Yellowglen and Wolf Blass for them.
As for the pricing, TWE offer no discounts for bulk buys on these Penfolds products. They may well discount them say 20% lower than the normal cost prices, but even then that would still be a solid $2+ a bottle more than the $17 that Bin 28 is going for at Dan Murphys.
What that doesn't account for though is rebates and advertising funding. All Coles and Woolworths need to do is simply funnel this extra cash into the cost price they get from TWE and they can claw back some advantage. Regardless, the big chains are making no money out of Penfolds Bins.
One option for TWE is that they could do is just to cut back the supermarkets allocations of the top end (Grange, 707 et al) to try and bring them back into line. Again though it might just be like playing with an angry bear, with the supermarkets simply responding by dumping Penfolds all together. Conversely, the chains need the big brands like Penfolds anyway so it might just be something of a stalemate.
Interesting times regardless, and frightening times for any winemakers in bed with the chains…..
The supermarkets offer something of a "deal with the devil" – they'll give you volume for a while, but the object lesson is in the milk industry: it's the producers who suffer. You get locked into a race to the bottom fueled by price reductions … and they'll probably end up using Chinese wine for their house brands anyway.
Well done Andrew.
I was in independent retail "back in the day" when the Bin release was the most important event on the wine calendar. Today, many independents have worked out they're better off without the Bins (and Fosters, Constellation et al) – hence the drive to win them back with magnums. There's a subtext here that's quite frightening for the industry and consumers. The chains clearly out-muscle even the world's largest wine producers. The vast majority of wine consumed in Australia now comes through the chains, produced by the largest wine companies. Those companies are under pressure to drive down costs in order to maintain their shelf space in the chains. The solution is to produce ever increasing volumes of increasingly homogeneous wine at lower costs. It's eroding individuality, character and regionality; the heart and soul of the Australian wine industry. Meanwhile, the boutique, single vineyard wine producers are faced with a diminishing number of independent outlets through which to sell their product.
These here are crazy times….
Cheers, Jason
Insightful post Andrew.
TC
Thanks Tim and Jason.
Jason you are spot on with that subtext – that chains clearly out-muscle wine producers – and it makes dealing with them a problematic existence indeed. Crazy (and hard) times indeed.
On a further note it looks like the 'race to the bottom' was well and truly in play yesterday, with talk of the price changing by the hour as each supermarket backed chain attempted to undercut the other one.
Allegedly the staff at one retail outlet simply removed the pricetags off the bin wines as the prices were so fluid…..
In the short term it's bad news for wineries though (somewhat) good news for consumers.
In the longer term it's bad news for everyone though, as wine ranges become more generic and the diversity of small retailers is forced out by mega liquor barns.
Dark times ahead…
As I've said elsewhere, after tasting the Bins at DM, I decided my money was far better spent on smaller wineries and at smaller retailers.
Excellent, excellent piece AG.
Since we're talking relative to DM, I actually attended one of their Bin release tastings yesterday. I quizzed their staff member on the whereabouts of the Bin 23 Pinot Noir, who told me; "there is no pinot noir in the Bin range", before being corrected, then followed with; "I don't actually like South Australian pinot noir (fair enough). The best Australian pinot noir is Craggy Range……"
I never hear that sort of rubbish from independent retailers.
Chris, it's sad to say that there are some very uninformed "fine wine managers" at DM. One would expect people who work with wine to be enthusiastic and informed about what they're selling, or at least appear to be so to customers who might know and care more than they do.
MichaeLC
well said. i just read last week that Aldi have applied to sell wine too. Looks like this is only heading in one direction for the chains and volume brands.
Re read these write ups to my tasting panel last Thursday night as a reveal as to what is really happening in the Australian wine industry. It is pretty hard work making any money in independent wine stores at the moment and only looks to get harder in the future. To add insult to injury my boss has informed me he has had the wine shop listed for sale since January. He has also presented me with a letter changing my working roster. My new hours are to work from opening the store to close of day Tuesday, Wednesday, Thursday, 8 hours Friday and 8 hours every Saturday.
The letter informing me was signed off with the line, "This is non negotiable."
I have 4 young children and a wife that flys shift work for one of the domestic airlines so things need to be negotiable or at least I need to feel that I am at least fulfilling my role as a responsible father to my children.
My hourly rate is $19:50 and as a sole position I have no lunch break and no other staff member to man the store should I need to use the toilet.
I have worked for independent liquor stores for the last 25 years (indeed I had my own outlet for 7 years) and believe that we should strive to keep them alive.
BUT I am seriously contemplating going over to the big guys (nay, being forced) to achieve some reasonable work conditions, reasonable rate of pay, some job stability and a retail roster that has some structure and flexibility. Sorry to say it is the Brave New World.
I don't like it but these are the realities of the new retail world.
Such a sad story Jim. Hope it works out for you. Keep the love of wine alive!