From Sigi Hiss
, at 08. March 2012 12:36
by Rebecca Gibb – Wine merchants are turning their backs on Penfolds’ Bin wines – whose annual release is today – following price increases that have been labelled a ‘slap 
in the face’.
A number of UK merchants, who did not want to be named, also revealed that they would not be taking their allocation this year due to the price rises.
The wines are released today with recommended retail price increases of around 20% to AU$37.99 for the Bin 138 Grenache Syrah Mourvedre blend and AU$64.99 for the Bin 407 Cabernet Sauvignon 2009. Bin 389 – dubbed ‘the poor man’s Grange’ – has risen more than 15% to AU$74.99.
‘To make the same margins on the wines that we did last year, we are going to have to increase our prices by $15,’ Poole said. ‘They have completely altered the proposition and are penalising loyal customers with the increases. As a result they are going to see some burning of the brand.’ Penfolds refused several requests for an interview with Decanter.com but issued a statement claiming that rising prices were a result of increased global demand.
‘Penfolds enjoys an ever growing demand for our wines across an increasing number of international markets. As a fine wine brand we are very limited in the amount of wine we can make each vintage and as a result the increasing demand we are seeing is causing prices to increase.’
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