Chile earthquake ups bulk wine prices

11 June, 2010

The spiralling price of bulk wine from Chile could impact on sales if suppliers don’t take action, according to the Co-op’s category buyer Ben Cahill.

Cahill told OLN that since the earthquake in February the Co-op has experienced “relatively few problems” given the scale of damage, although a couple of own-brand Chilean wines were out of stock for two weeks.

“The biggest concern at the moment is the escalating price of bulk liquid, due to both the earthquake and the 2010 harvest being short, the scale of which is only now becoming apparent,” he said.

“Chile moved swiftly to ensure supply in the aftermath of the earthquake and largely succeeded in minimising the impact. But unless suppliers take a long-term view prices may rise at entry-level, which would make it difficult for Chile to sustain the category growth it has experienced over the past 12 months.”?Tesco product development manager James Griswood said despite initial disruptions supply was “back on track”.

“We have had to pay particular attention to stock levels as we move from 2009 to 2010, because some companies have lost large volumes,” he added.

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