Dollar Goes North But Prices Fail To Head South

After more than year of watching the dollar go from strength to strength, I'm not sure why we aren't paying considerably less for wine that clearly costs (in terms of the Canadian dollars) far less then it did a year ago.

Talk about a can of worms.

There isn't enough space here to describe the squirming on all sides. Suffice it to say importers think consumers have been getting a "deal" for years from wineries who claim to have been subsidizing the wine you drink because of the weak Canadian dollar.

Personally, I am not aware of any business, at least healthy ones, that subsidizes prices to serve consumers. So I am not buying the argument that the industry kept prices level when the dollar was weak and that they intend to keep them level as the dollar's buying power soars.

Interestingly, the Quebec government is in the middle of a liquor scandal, accused of conspiring with its suppliers to keep shelf prices high to protect its profit margin. That's because any drop in the base price of a product before the tax is applied will result in a drop of income to the people who do the taxing.

While I'm not aware of any conspiracy to fix prices in B.C., I can't imagine the government is asking suppliers to lower base prices to reflect favourable changes in the dollar. Why would they?

To be fair, some wineries have dropped their export prices, but most shelf prices remain firm and agents tell me prices will remain high in B.C. because it's too expensive to lower them. Huh?

Apparently under the current system, if a suppler wants to lower the price of any general listed product, the B.C. Liquor Distribution Branch requires payment by the agent/supplier of the difference between the original retail price (that's the shelf price less 10 per cent PST and 7 per cent GST) and the newly reduced retail price on all stock that is in the store system, including the branch's central warehouse.

The rule ensures the government does not lose a penny of revenue from an agent-initiated discount and it also discourages agents from making any quick price adjustments because the penalty is too steep to justify passing on any of the savings accrued from a stronger dollar.

There was a time when you could turn to local wine for relief, but domestic wine prices are now out of control. The B.C. Wine Institute seemed positively delighted to announce VQA wine sales had topped $131 million in December, up from $109 million a year earlier and $80 million in 2002. The increase, some 63 per cent in just three years, is impressive if you are selling, but what if you are buying the stuff?

I went looking for bargains this week and came up with a short list. It's a start, but until the system changes, don't expect to see lower wine prices any time soon.

The St. Hallett Poacher's Blend 2004 is remarkably tasty for a $13 wine with its ripe and slightly sweet entry and honey, grapefruit, kiwi flavours and fig and mineral finish. The finish is crisp with a touch of sweetness but well balanced. It's good value compared to its recent price history: 2003 ($14.95), 2002 ($17.50), 2001 ($14.95), 2000 ($14.95), 1999 ($15.95), 1998 ($16.95).

Published: Saturday, March 18, 2006
Calona Vineyards Pinot Noir Artist Series Reserve 2004 does a fine job of expressing a bit of pinot character for the price. Look for a round, soft, supple palate with rhubarb, stewed cherry, smoky vanilla flavours with a somewhat sweet, warm finish.

Similar kudos go to the De Bortoli Petite Sirah dB Selection 2003 and its open, spicy nose of black fruit and blueberries. The tannins are a bit clunky but for a medium-weight barbecue red, streaked with acidity, it should get the job done.

Lujuria Merlot-Monastrell 2003 is a fine-value dry red from Yecla, Spain. The 70/30 blend of monastrell (mourvedre) and merlot returns in 2003 spicier and richer than ever. The dark chocolate, plummy red fruit will have you rushing back to get another bottle.

Pascual Toso Malbec 2004 has plenty of peppery, savoury, black cherry, earthy, vanilla and coriander flavours -- it's a rock solid, entry-level malbec.

Still with Argentina, Terra Andina Cabernet-Merlot 2004 makes a statement at $8.95. Its big leafy, smoky jalapeno, peppery, green bean nose isn't for everyone, but it's an easy sipping, minty herbal-style red best served with grilled meats.

ST. HALLETT POACHER'S BLEND 2004, BAROSSA VALLEY, SOUTH AUSTRALIA
Price: 12.95
UPC : 316920000329
Score: 87/100
Remarks : Honey, grapefruit kiwi flavours with a touch of sweetness.

CALONA VINEYARDS PINOT NOIR ARTIST SERIES RESERVE 2004, OKANAGAN VALLEY.
Price: $12.49
UPC : 058976350085
Score: 86/100
Remarks : Warm rhubarb, smoky vanilla, carrot top flavours.

DE BORTOLI PETITE SIRAH DB SELECTION 2003, SOUTH EASTERN AUSTRALIA
Price: $11.99
UPC : 679940000427
Score: 85/100
Remarks : A medium-weight barbecue red.

LUJURIA MERLOT - MONASTRELL 2003, YECLA, SPAIN
Price: $8.95
UPC : 08422445001178
Score: 86/100
Remarks : Dark chocolate plummy red fruit. Fine value.

PASCUAL TOSO MALBEC 2004, MAIPU, MENDOZA, ARGENTINA
Price: $11.99
UPC : 718742000058
Score: 87/100
Remarks : Tasty, well-made, entry-level malbec.

TERRA ANDINA CABERNET - MERLOT 2004, REGION DEL VALLE CENTRAL, CHILE
Price: $8.95
UPC : 830212000075
Score: 85/100
Remarks : Easy sipping, minty style red best served with grilled meats.