[question] Question submitted by John Rudzinski, Australia Just returned from a trip from the U.S and I was blown away by at the Beverly Hills Hotel, a five star hotel was selling 1998 Penfolds Grange at their restaraunt for $200 or $270 AUD. Why do we get ripped off here in Australia? [/question] [answer] I’m often asked why it’s not unusual to find Australian wines priced more cheaply in other countries than they are back here. While the main reason is the punitive taxation regime that the Australian wine industry has to deal with, it’s often the case that the pricing issue is simply due to a mistake by a hotel, restaurant or retailer. I forwarded this question to Liz O’Connell, Vice President Corporate Affairs, Foster’s Wine Estates Americas, whose reply I’m happy to print unedited below: ‘Thanks for this, I was just down in LA for G’day LA, had I known, I would have taken myself there for dinner on my night off! ‘More seriously though, these kind of anomalies do happen in the US more than in Australia for a couple of reasons. ‘FOB (free on board) price runs standard for all years of Grange, we didn’t raise (the price) for the great 98 vintage although we could’ve. Then retailers and restaurateurs set their price. Prices for 98 I saw in just San Francisco alone ranged from $US225 retail to $350. ‘Standard price for a current Grange (2000) on wine lists is about $US300. Older vintages vary greatly by list. ‘The 98 vintage across the board is priced higher than other vintages post 95 on wine lists but every now again again, you will see a wine list written by someone who does not know the vintage or wine well and sets a price based on FOB, not on the brand or vintage. My guess that this is the case here and a mistake was made.We are working hard to educate sommeliers across the country on Penfolds and Grange with tastings by Peter Gago and our educators. Its an ongoing education process and challenge we have in America and we clearly haven’t hit everyone and this anomaly shows that.’ Hopefully that clears up the question. I agree how infuriating (or occasionally how opportune) it is when you see things like this having paid full price in Australia. [/answer]
