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Sunday, April 10, 2011

Methode Cap Classique sales on wine lists

Methode Cap Classique sales on wine lists


Methode Cap Classique or local bottle fermented sparkling wine made from traditional Champagne varieties have always been a hit on a wine lists, either by the glass where consumption and sales pattern have always been healthy and growing steadily, and by the bottle however with recession showing it's ugly head in South Africa, there is indeed a marked difference in consumer ordering behaviour (Plus the almost daily road block for alcohol test in the main arteries of Johannesburg and fancy suburbs) people are drinking less than they use to be compare to a year ago same time!

Most of the Cap Classique sales is now either the Brut, off dry / Demi Sec style or where cost prices ranges between R52 to around R 70 per bottle, which will translate to around anything between R 160 to R 220 on the wine lists, anything above from a local perspectives is a dead stop, and yet there is more and more MCC producer releasing either a maiden vintage or a new fancy cuvee at over R 100 at cost and already they are not in a favorable price bracket if they are ever to succeed in moving good volumes!

Considering there are Champagne at around R 170 at cost per bottle and the consumer seeking value, status to some extent and just the magic word of "Champagne" is enough to sell an experience, the question is how far and for long long will some South African Methode Cap Classique producers will continue to increase their prices? and how many more will continue to release new vintage with prices defying the real stuff? With consumer awash with information today and price sensitivity will be around for a long time until we are all out of the wood and we can all see the light at the end of the tunnel, is it worth the risk to charge such high price for local bubbles? (yes we all know it is a costly business to produce bottle fermented bubblies with time spent on less, blah blah and blah, or that fancy bottle that was inported from France!!)

There is not a month the last 2 to 3 years where I get one of those cold calling of a winery or sales rep, telling me of a new MCC release, difficult to hide my enthusiams, yes bring it on............but when it come to the pricing talks, most of the time I am lost of words............ sure bring it, will try and see where I can fit it in (knowing for a fact will be lucky to sell 6 bottle a month.....)

But all not grey, there are guys out there whose prices are fine and relatively good value (you know who they are! simple arithmetic here) but for those new kids on the block, thinking MCC is a cash cow, like Sauvignon Blanc, they have certainly not done their market research very well or their decision to make a Cap Classique could have been driven by ego!