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>> Letters » Letters -Israel-Canada

 

The first letter

January 2008

Dear Rochelle Golumbia ,

My name is Oran Cohen and I am an Israeli wine enthusiastic , who participates from time to time on Israel Preker's Israel Wines website.

I was very pleased to read about your welcomed initiative for promoting Israeli wines in BC Canada.

I do, however, have some questions / criticism regarding this.

When looking at the pricing of the wines offered, I cannot ignore a strong sense of overpricing, that might spoil potential success.

Just lately Robert Parker & Mark Squires held a tasting of top Israeli wines in the current issue of the Wine Advocate and on their Internet site.

At their summary they stated that the Israeli wines have improved but are much too expensive in comparison to similar quality wines from other countries.

I believe that in order to compete with similar quality wines the prices should be reduced.

For instance, GHW Har Hermon Red , which is an entry level nice quaffer ,and costs In Israel less than 10$, is priced in BC at 21.99$.

 I am sure that a Canadian wine lover can obtain for such a price a far better wine from a reliable producer from, lets say, Italy or Spain, let alone Chile and Argentina.

Furthermore, I think that after a one time encounter the consumer will stay away from Israeli wines, as he can obtain a better quality at half the price. (If Kashrut is not the issue).

My main concern is about relatively simple wines priced far too high, but even a top quality wine like Golan Heights Winery, Cabernet Sauvignon, Yarden, 2003 is at a problem. Parker scored it 86. At 39.99$, a BC wine lover will find much better quality/scoring wines.To summarize my point, I believe that if Israeli wines will succeed not on the Kosher shelf, but at their own as Israeli / Mid-Eastern quality wines, as the competition is tough, the pricing should be realistic and provide decent QPR for the costumer, to ensure satisfaction and repeated purchasing.

I will greatly appreciate your thoughts regarding my remarks.

 

Happy new year, 

Sincerely,
Oran Cohen , Jerusalem.
ORANCO@GMAIL.COM

 

Dear Oran,

 Your comments about pricing are well understood. The sale of beverage alcohol is highly regulated in Canada, and the regulations are in the jurisdiction of the provincial governments, with each province having its own set of regulations and processes. 

The price of the wine to the consumer includes the wine itself, freight, duties, taxes, other leviesfor example for the bottles and environmental fees, a small margin for the importer and the markup of the provincial entity that deals with the sale of beverage alcohol.  All of this causes the price to the consumer to be quite high, especially in relation to some other parts of the world.  This system, of course, applies to all wines here – not just to the Israeli wines.

 Within the framework of the pricing structure, the importing agent and the BC Liquor Distribution Branch (BCLDB have worked to determine pricing for the Israeli wines that fits this market for the quality of the wine.  And with the purchase of Israeli wine, consumers here also benefit from a higher than usual alcohol content.

Friends who have purchased Galil Mountain wines in Seattle, Washington paid the same price there as the listed price for the wines here in British Columbia.

Competition is tough, as you say in your email.  With an initial shipment filling a 40-foot container and plans for additional shipments, the agent and BCLDB are confident in the quality of the wine and the pricing in this market, and they will monitor sales.  As with any enterprise, some products will sell better than others, and I expect that the portfolio of Israeli wine may shift a little over time

It is everyone's goal that Israeli wines succeed in this market.  We will have another Israeli Wine Festival in May that will allow local wine drinkers to sample all of the wines available for purchase here as well as additional wines imported just for the wine festival.

I appreciate your interest and the time you took to write to me, Oran.  Please feel free to write again in the future if you want to know how the Israeli wines are doing here.

 

Shabbat Shalom,

Rochelle

Rochelle Golumbia

Chair, Vancouver Israeli Wine Festival

ragolumbia@shaw.ca

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