Does A Strong Dollar Really Make Wine Imported To The U.S. Cheaper?

[Yao_C]

@Dan_Kravitz

Overall I would expect a slight decrease in prices of European wines in the U.S. market. But there are so many factors involved, and increased volatility of politics, economics and climate make this far from certain.

Demand elasticity is another factor, from those who are convinced, for whatever reason, that now is the time to buy more wine

[John_Morris]

@Dan_Kravitz

… Both recession and cratering currency combined especially reducing UK demand…

Most currencies are down sharply against the dollar, but the pound hasn’t cratered against the euro. It’s down only 3% over the last year (from 1.186 to 1.150), so that shouldn’t be a major factor in British purchases of wines from the Continent.

Now, the British economy is an other matter…

GBP/EUR:

[Dan_Kravitz]

John,

Agreed, good point on the Pound vs Euro. But the UK and US are often vying to buy the same wines. The UK right now has an almost level playing field vis-a-vis the Euro, while the US has a 15% advantage compared to a year ago.

Dan Kravitz