cowdery Posted December 1, 2014 Share Posted December 1, 2014 I'm still waiting for someone to explain why BT and Blanton's keep being on sale when they do show up. Not sure if it's the stores or the distributors providing rebates for the stores....but given supply/demand, makes 0 sense.Retailers like fast turns so when they know something is in high demand and they get a big load of it, they'll run a sale if they think that will increase sales velocity. They get a big shipment, put a big stack on the floor, and price it to sell. We'd like them to take care to make sure everything is always available, but the business doesn't work that way. If a little discount will speed up turns, they're all for that. Link to comment Share on other sites More sharing options...
tanstaafl2 Posted December 1, 2014 Share Posted December 1, 2014 It makes for fun reading - like, just what IS that "Other" than beer, wine, or spirit which makes up 54% of Cape Verde's alcohol consumption? :shocked: Link to comment Share on other sites More sharing options...
The Black Tot Posted December 1, 2014 Share Posted December 1, 2014 Black Tot, I'm told cooperage capacity is not a problem. The only bottleneck in barrel production has been in getting enough timber out of the forests. I believe this because the cooperages have increased their capacity tremendously. There used to be three cooperages making new whiskey barrels. Now I can think of at least seven. Adding cooperage capacity is relatively easy and low cost compared to adding distillery, maturation, and bottling capacity. Cooperage capacity is just about the last thing we have to worry about. Link to comment Share on other sites More sharing options...
Cards fan Posted December 1, 2014 Share Posted December 1, 2014 This was a great read. I learned a lot walking through the whiskey industry. Thanks to everyone for this one. Still waiting for glut to begin with an empty glass ready to go... Link to comment Share on other sites More sharing options...
jfw Posted December 1, 2014 Share Posted December 1, 2014 They don't distribute to Maryland, sadly. Link to comment Share on other sites More sharing options...
garbanzobean Posted December 1, 2014 Share Posted December 1, 2014 I haven't see it on the shelves in MD in a couple of years, but Monty County got some in Dec 2013 along the second half of their BTAC shipment. Link to comment Share on other sites More sharing options...
Auracom Posted December 12, 2014 Share Posted December 12, 2014 It's officially been one year since I've seen ETL or Weller 12 on a store shelf in the Chicago suburbs. They might as well be discontinued at this point. I personally don't care much about the Weller but the ETL scarcity is irritating as hell and has me really annoyed with BT.Just like that... tada! My local contact has received some ETL. It's priced at $39.99 this go around. A year of nothing and then a price hike from BT... sigh.Have no choice but to pay it. Who knows the next time I'll have another opportunity. Link to comment Share on other sites More sharing options...
compliance Posted December 12, 2014 Share Posted December 12, 2014 At $40 you may as well just buy RHF. The comparatively high price of RHF and Blanton's to ETL was the main reason to buy ETL for me. Link to comment Share on other sites More sharing options...
Auracom Posted December 12, 2014 Share Posted December 12, 2014 I don't think I've ever seen RHF in my area... and the last time I saw Blanton's it was in the mid-$50's. Link to comment Share on other sites More sharing options...
Renegator Posted December 12, 2014 Share Posted December 12, 2014 RHF jumped in the Atlanta area from $45-$49 to $65 overnight. Link to comment Share on other sites More sharing options...
jeffrey r Posted December 12, 2014 Share Posted December 12, 2014 RHF is slowly coming back in stock in NJ at $40-$45. Of course, I stocked up at $45, and then started seeing it closer to $40, but so be it. I love RHF. Link to comment Share on other sites More sharing options...
393foureyedfox Posted December 13, 2014 Share Posted December 13, 2014 priced at $39.99 this go around. Have no choice but to pay it.sure you have other choices, there are shelves full of other choices.as long as people clear the shelves, even though the prices jump 30-40%, the prices arent going to go back down....if you think its still a value at $40, buy it. Otherwise, you can vote with your dollars Link to comment Share on other sites More sharing options...
The Black Tot Posted December 13, 2014 Share Posted December 13, 2014 sure you have other choices, there are shelves full of other choices.as long as people clear the shelves, even though the prices jump 30-40%, the prices arent going to go back down....if you think its still a value at $40, buy it. Otherwise, you can vote with your dollarsAbsolutely true. Link to comment Share on other sites More sharing options...
dmarkle Posted December 13, 2014 Share Posted December 13, 2014 At $40 you may as well just buy RHF. The comparatively high price of RHF and Blanton's to ETL was the main reason to buy ETL for me.I just went to a store two weeks ago which USED TO BE a reputable place that I shopped at. They wanted almost $90 for RHF! Link to comment Share on other sites More sharing options...
cowdery Posted December 14, 2014 Share Posted December 14, 2014 For the record, pricing on the brands owned by Age International (Blanton's, Ancient Age, Rock Hill Farms, Elmer T Lee, etc.) is decided by them, not by Sazerac. Production, i.e., the shortages, is a bit more on Sazerac's desk, but the pricing is all Age. Price increases might also be coming from the distributor or the retailer, based on their own assessment of the market. Neither Sazerac nor Age can't control that. Link to comment Share on other sites More sharing options...
danz Posted December 14, 2014 Share Posted December 14, 2014 For the record, pricing on the brands owned by Age International (Blanton's, Ancient Age, Rock Hill Farms, Elmer T Lee, etc.) is decided by them, not by Sazerac. Production, i.e., the shortages, is a bit more on Sazerac's desk, but the pricing is all Age. Price increases might also be coming from the distributor or the retailer, based on their own assessment of the market. Neither Sazerac nor Age can't control that.On the Age International side, from discussions I had with Sazerac, it sounds like Age International has a great deal of control over pricing and distribution decisions, like deciding not to distribute Blanton's Straight From the Barrel in the U.S. That decision is a major contributor to my lack of interest in the Age International line.As for Buffalo Trace products, they were firm in stating that they cannot control retail prices, but it appears they should be able to control prices from the distributor to the retailers. After that, retailers cannot be prevented from engaging in price gouging according to the company's official position. I have questions about whether that position is truly legally required, or economically wise, but that is their current view. Link to comment Share on other sites More sharing options...
flaminiom Posted December 14, 2014 Share Posted December 14, 2014 One nice thing of liquor control states is you know pricing. In Michigan ETL went up $1 in 2014. I'd guess if it went up more than that, then someone is pricing for demand and helping their margins. Link to comment Share on other sites More sharing options...
Vadertime Posted December 16, 2014 Share Posted December 16, 2014 One nice thing of liquor control states is you know pricing. In Michigan ETL went up $1 in 2014. I'd guess if it went up more than that, then someone is pricing for demand and helping their margins.Interesting observation. So with price controls, you gotta take the good with the bad. But, can you get ETL in MI? (Former 1 year Interlochen resident here). Love MI and Go Blue! Link to comment Share on other sites More sharing options...
nd2005 Posted December 16, 2014 Share Posted December 16, 2014 Interesting observation. So with price controls, you gotta take the good with the bad. But, can you get ETL in MI? (Former 1 year Interlochen resident here). Love MI and Go Blue! Link to comment Share on other sites More sharing options...
cowdery Posted December 16, 2014 Share Posted December 16, 2014 As for Buffalo Trace products, they were firm in stating that they cannot control retail prices, but it appears they should be able to control prices from the distributor to the retailers. I don't know why you say that, but it isn't true. BT, like any producer, controls what it charges distributors but distributors are independent businesses and set their own prices to retailers. Link to comment Share on other sites More sharing options...
flaminiom Posted December 17, 2014 Share Posted December 17, 2014 Interesting observation. So with price controls, you gotta take the good with the bad. But, can you get ETL in MI? (Former 1 year Interlochen resident here). Love MI and Go Blue! Link to comment Share on other sites More sharing options...
danz Posted December 17, 2014 Share Posted December 17, 2014 I don't know why you say that, but it isn't true. BT, like any producer, controls what it charges distributors but distributors are independent businesses and set their own prices to retailers.I say that because distributors who engage in pricing and other practices that offend the manufacturer can be terminated as distributors. The only reason there would even be a question about this in the spirits business is because of the artificial distribution monopoly or duopoly established in most states by the three tier system. Even so, manufacturers can send more product to other states, as BT does with Weller products: they are not to be found in NY except for a few weeks per year. Link to comment Share on other sites More sharing options...
cowdery Posted December 17, 2014 Share Posted December 17, 2014 In many, probably most states, distribution relationships are exclusive and difficult if not impossible to change. In many states, there really are no alternatives. But most of all, since producers are not legally allowed to dictate prices to distributors, terminating a distributor for not following producer pricing recommendations would surely be frowned upon by the state's alcohol regulator. Link to comment Share on other sites More sharing options...
danz Posted December 17, 2014 Share Posted December 17, 2014 In many, probably most states, distribution relationships are exclusive and difficult if not impossible to change. In many states, there really are no alternatives. But most of all, since producers are not legally allowed to dictate prices to distributors, terminating a distributor for not following producer pricing recommendations would surely be frowned upon by the state's alcohol regulator.It's possible that state liquor authorities would reach that interpretation. However, that is a different point than the one above. I assume you are aware of the ridiculous price gouging at retail stores. If a distributor decided to, say, take BTAC with a suggested retail of $80 and tell BT, I don't care what you say, I'm an independent business, I'm charging every store and restaurant $400 a bottle, I would be surprised if a state liquor authority could take a truly enforceable position that BT could not fire that distributor.The whole three-tier system is bad for consumers and an aberration in markets. This system is a very distorted market and simplistic Econ 100 "supply and demand" models do not adequately describe the price and distribution effects of the government imposed monopolies on distribution (in fact most introductory econ courses are more robust and at least touch on such effects). Even worse is looking at this market and taking the position that other, less distorted markets, should resemble it. Link to comment Share on other sites More sharing options...
silverfish Posted December 18, 2014 Share Posted December 18, 2014 Even so, manufacturers can send more product to other states, as BT does with Weller products: they are not to be found in NY except for a few weeks per year.This line should read ".. be found in parts of NY except...". OWA and SR can be found on the shelf in my area any time I stop in. I thought I readthat the 12 yr was now in NY but I have yet to see it in store. Link to comment Share on other sites More sharing options...
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