Ok, so I am writing about the soaring Canadian dollar, affectionately known up here as the loonie. Today the loon just reached parity with the U.S. dollar. You have to go back to your BeeGees albums to find the last time the Canadian dollar was this high. Just five years ago it was at $0.62. If it weren't for the taxes, I might think I was living in Switzerland!So what does this have to do with wine? Everything. I am paid in C$, yet 72% of wine sold in Canada (and 99% of my cellar) is imported. I am jumping up and down in my chair - WAHOO! Over the past few months the price tag for my upcoming trip to Sonoma has fallen by 15% - now that's savings! While I am not holding my breath for the local monopoly to cut prices (at least in the short run), I think my upcoming trips down south will be more...fruitful?
Soon I may have to take back my comments about American wine "value for the dollar".
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4 comments:
What about waiting for the next "price adjustment period"? I hear it can take 6 months!
Since I almost never buy U.S. wine what I really want to know -- and Joe I bet you could help me on this -- is why, after the New York Times upped its suggested newsstand price from US$1 to US$1.25 last month, the Montreal distributor cranked its Canadian newsstand price from $2 to $2.50! Highway robbery especially since the same paper in Toronto is CDN$1.40. This drives me so mad I'm ready to harass Eric Asimov about it.
Please don't just tell me to read it online.
If the dollar rises 15%, the 'adjustment' will be 10% - it is the government, remember? :)
How quaint - hard copy...I am pretty sure Asimov doesn't know or care about the Montreal price. The Montreal distributor has a lock, and knows he can charge whatever. Nothing to do with currencies...
Gentlemen,
On the other hand, with the Euro hitting all time high against the US Dollar, all French wine growers will continue to inflate the prices of their product. We the consumers (both US & Canadian) will continue to hold the short end of the stick.
May be it it time to drink more South American or even Mexican wines.
Hi R&B. With a worldwide wine glut the French have no pricing power - it is your local distributors that are raising prices. As for Canada, our dollar is up slightly vs. the Euro, and when the French have to find a place to dump we will happily take it - I think we will probably come out winners, but it is difficult to say with so many forces driving prices...
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