US Buying Cooperative

Post by **Roy Hersh** » Tue Jan 02, 2007 2:20 pm

I see this very differently than what you have read Tom. First of all, to me ... I have no desire of buying through the UK and increasing the price through a middleman there. I would go directly to the source, buying ex-cellars bottles/cases only ... which guarantees quality of provenance, communication, letters of credit, shipping ability and availability of unique Ports. PLUS, I'd include Douro wines to enable us to bulk up the order.

Having shipped wine from the EU in the past, I know that we may not have 20' container capabilities anytime soon, but it would certainly be feasible as this grows, to consolidate pallet loads (typically 56 cases) with a freight consolidation company that I know of in Portugal.

I just don't see any benefit of shipping a case at a time from the UK given the $150 price per case to do so. Otherwise, we could individually buy from very reputable guys there now. I know that we can do better, not to mention the provenance of not having to deal with auction bottles etc., and saving the extra middleman profit.

But, you may certainly want to investigate the possibilities for doing so for the guys in the UK. 8)

Moses Botbol · Post by **Moses Botbol** » Tue Jan 02, 2007 2:55 pm

Roy:

I have to agree... I sure hope something can be put together. I would think 56 cases would be pretty easy? That is little more than 5 case each for 10 people...

Tom Archer · Post by **Tom Archer** » Tue Jan 02, 2007 3:18 pm

Roy,

Whilst there is an obvious logic in shipping direct from Oporto, the reality is that most of the shippers have got exclusive agency arrangements for the distribution of their wines in the US (and elsewhere) and won't offer sensible prices to anyone else for fear of upsetting their appointed agents.

This, I assume, is why the prices quoted by the shippers for direct sales from Oporto are ridiculously high - often more than double the London auction price.

The fact is that London is the dominant secondary market for port, where wine of excellent provenance can be bought in modest quantity for sensible prices.

Tom

Post by **Roy Hersh** » Tue Jan 02, 2007 5:33 pm

Whilst there is an obvious logic in shipping direct from Oporto, the reality is that most of the shippers have got exclusive agency arrangements for the distribution of their wines in the US (and elsewhere) and won't offer sensible prices to anyone else for fear of upsetting their appointed agents.

Therein lies the art of negotiation and utilization of contacts with importers. There are many ways to go about this in the USA working just inside the borders of our archaic 3 tier system. What goes on in NY compared to CA. to use two opposite examples is about as similar as the UK and Japan when it comes to wine agents. The realities in practice vs. theory can sometimes be very different ... depending on what State and importer/distributor you work with in the USA.

This, I assume, is why the prices quoted by the shippers for direct sales from Oporto are ridiculously high - often more than double the London auction price.

That is only one piece of the puzzle. Yes, maintaining prices equivalent to their more important importers/distributors in various countries is obviously in their best interest. But the fact that most tourists are willing to pay these prices because they don't have the same knowledge of the marketplace as the majority of folks on the FTLOP is every bit as salient a point. Mr. Jones from New Jersey takes his wife on their honeymoon and she likes Port, they visit Gaia and the Douro. Before heading back to Joisey they decide to buy 4 bottles to bring back as a momento of their special trip. Do you think they care if they are paying double, no less know the difference? Serious Port geeks are very small in number ... and that is where we come in ... to change perception and educate the world!

The fact is that London is the dominant secondary market for port, where wine of excellent provenance can be bought in modest quantity for sensible prices.

It may be the dominant secondary market, but here in the USA we pride ourselves on the fact that we lead the world in purchasing the highest percentage of Vintage/Colheita/LBV in the world.
Additionaly we don't have the 5 pound BOBs (Buyer's Own Brand) to drive sheer volume numbers. Then again, sadly, we overpay for Vintage Ports compared to the UK and there is no question about that.

bjminc · Post by **bjminc** » Sat Feb 03, 2007 8:10 pm

Just read the thread and

Peeked my intrest!! If I can be of any help, would love to!!

Post by **Andy Velebil** » Sun Feb 04, 2007 12:48 pm

bjminc wrote:Just read the thread and Peeked my intrest!! If I can be of any help, would love to!!

Offers are always appreciated, but I need to ask that you update your profile with your real name and location, which is a requirement of the site. As you can see we are quite the civil group. Thanks

bjminc · Post by **bjminc** » Sun Feb 04, 2007 6:20 pm

I have been trying to, but can't seem to be able to. Sorry

bjminc · Post by **bjminc** » Sun Feb 04, 2007 6:24 pm

Wellllllllllllll Daaaaaaaaaaaa