6 May 2009 /
Trading up…
by Noelle Dyer at 4:28 pm 6 May 2009
Filed under: Luxury
Tags: Branding, Wine
Wine, for all intents and purposes, has always existed – archaeological evidence suggests that people have been producing wine since as early as 6000BC. But never before, has wine been so diverse in terms of origins, quality and price.
In fact this is a general trend affecting all foods: everyday, food products are sold both as pure commodities and as luxury products. Even the most basic staples such as salt or butter can be found and bought in premium versions under descriptions such as Himalayan crystal salt or beurre de baratte. However, if there is one food product that exemplifies this phenomenon better than any others, it is wine. To say that there is a world between everyday table wines and the most prestigious bottles is an understatement. While you can easily find cheap table wines for a few dollars, in 1985 Christie’s managed to sell a bottle of 1787 Chateau Lafite for $160,000.
The very top end of the market is small; so small, in fact, that demand outweighs supply, and wine producers don’t have to work very hard to shift their production. But for the vast majority of wine producers, the challenge is somewhat different: how can they build a stronger emotional connection with consumers and ultimately trade up on the ladder? Read more…
