Wine Futures and the Economy

Dale W. recently posted about the possibility/probability that CWC has gone teats up. I don't think it is unrealistic to assume more retailers, including some big players in wine futures, will meet the same fate. Are you worried? Do you check on the financial ability of your retailers to deliver futures as promised?
I don't do futures, but if I did, I just might have increased concerns. Do you?

Curious Bill

[Jenise]

Dale W. recently posted about the possibility/probability that CWC has gone teats up. I don't think it is unrealistic to assume more retailers, including some big players in wine futures, will meet the same fate. Are you worried? Do you check on the financial ability of your retailers to deliver futures as promised?
I don't do futures, but if I did, I just might have increased concerns. Do you?

Curious Bill

I think we all have to be worried right now in all matters retail. I'm certainly giving the stability of individual dealers a lot of thought as I make purchasing decisions for my home remodel.

[David M. Bueker]

I do 95% of my business with two brick and mortar shops that have essentially zero internet presence, and I rarely order futures. It's served me well in the past & I have no doubt will serve me well in the future.

I basically have a 4 part game plan:
1) order mostly in-stock items
2) stick to stores with long and solid histories
3) diversify- not too much of pre-arrivals with any one store
4) not buy as much!

I only do futures for birth year wines and then only through a single brick and mortar store that has a solid reputation. Not much of a concern to me.

I only do futures for birth year wines and then only through a single brick and mortar store that has a solid reputation. Not much of a concern to me.

There's still a hazard, in that the brick and mortar store has to buy the futures from someone further up the distribution pipeline, and that middleman could go under. I would ask the brick and mortar store what happens if the futures contract falls apart. Who eats the loss? The smart retailers/wholesalers/importers will take out insurance against this happening (although in this economic climate, insurance companies may be reluctant to underwrite such insurance), or they will eat the loss and either buy the wine on the open market so that they can deliver on the futures contracts, or offer the customer a refund.

-Paul W.

There's still a hazard, in that the brick and mortar store has to buy the futures from someone further up the distribution pipeline, and that middleman could go under. I would ask the brick and mortar store what happens if the futures contract falls apart. Who eats the loss? The smart retailers/wholesalers/importers will take out insurance against this happening (although in this economic climate, insurance companies may be reluctant to underwrite such insurance), or they will eat the loss and either buy the wine on the open market so that they can deliver on the futures contracts, or offer the customer a refund.

Yup. There is still risk. All I can say is that I have had many dealings with MacArthur Beverage without a single problem. My brother had one incident where they were suppose to be getting a wine for him (but it was not sold to him - no money exchanged). Turned out that they could not deliver and had no record of the promise on their side but took his word for it and found him a bargain on some other wine instead. With service like that I will take my chances on the one case I buy everytime we have a birth in the family.

MacArthur Beverage has an excellent reputation.

-Paul W.