Get our heads out of the Sand!
Reading the news reports, we are getting sprains from slapping ourselves on the back for the recovery in the wine industry. Touting our improved quality and consumer preference for California wines as proof positive the wineries are back on track and the future looks bright.
These are scary times, for it occurs to this observer, little has been learned of the globalization of wine and that sets us up for a future fall. While quality is always improving, pricing has been static and winery costs have risen, the real hero in this recovery has been the value of the dollar versus our principal competitors.
Nearly all of the vaunted increase in exports has been due to the fallen dollar. Domestic improvement has resulted from the Australian and the European wine suddenly being 20-30 percent more expensive without any substantial increase in the value proposition. US consumers are very aware of the value proposition and appear to shop wine with their head and pocketbook as well as their pallete.
Just as the Aussies were arrogant and brash in their assault on America, they have been left injured and hurt from the dollars movement. We need to recognize and weigh the impact of this on our industry and look around to see how we can take advantage of this anamoly while it is here and develop a plan to carry us through the pain and dislocation that is sure to happen when the dollar's value rises again.
Time is running out.
posted by P at 8:10 AM
2 Comments:
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Getting Our Heads Out of the Sand I must say that I've had numerous reactions to the Bernie Ebbers' news of late- from "good riddance", to pure apathy.Costa rica toursgetting our heads out of the sand here people. We are in very deep trouble. Begin by paying closer attention.
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