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Original Message

Costco is not where you want to be....

Posted by triodesteve on May 15, 2011 at 20:04:00:

...from my perspective anyway. As a small producer, there is only one reason to be at Costco....cash flow.
A few years back I made wine for a high end place that was having problems moving enough wine. Their top bottle priced out in the low 60's. Well to Costco they went and they did move wine, but at what cost?
Imagine being a wine club customer and walking in to Costco and seeing the wine at a cheaper price than you paid. Imagine being a retailer that has a Costco down the street and all of a sudden the same wine you have on your shelf for $62 is available for $45. Not good...those bridges get burned for ever.
I hear thru the grape vine that the winery is now moving a bunch of wine to China.