FlyerTalk Forums - View Single Post - Financial Times article on BA wines. FT gets a mention.
Old Feb 22, 2019, 4:28 pm
  #44  
The Muffin Man
 
Join Date: Dec 2014
Posts: 116
Originally Posted by orbitmic
But it wasn't set on its own, JR clearly explained that this was the cellar door price, and I personally do not think that anyone on this thread mistook it for a retail price. So with regards to your point that a €6 cellar door price is nowhere near a €6 retail price, I agree entirely. JR's point, however, was that a €6 exclusion threshold for F wine bottles is extremely low and I agree entirely with her on that too.

For what it's worth, based on volume alone, I would personally be surprised if the bulk prices negotiated by BA for their F needs are any lower than those negotiated by Majestic and Aldi, but I am admittedly not privy to any of those companies' purchasing contracts. To be honest, I think that the lower end of your estimate/higher end of mine, ie around £15 is probably not far from right for £5 cellar door. I really wouldn't think that £20 or more is - that to me would be a cellar door price of £7-8 (€8.50-10) so well above BA's threshold, and I do think that my original lower end of £12 was too low (probably £3.50-4). I haven't had those discussions for a long time, but I seem to remember that a £10 retail bottle typically has about £3 worth of wine in it and a £5 bottle not even £0.50. Shocking stuff when you think of the amount of work and love that can go into those bottles, but that is unfortunately all too common in the food industry whereby producers get very little for their work.
Based on that published tender document assuming total volume for BA of ~4m bottles, both Majestic and Aldi would be buying in significantly larger quantities.

Majestic has single product lines which sell in excess of 1m units and when you include other product lines from same importer/agency then individual contracts would be on a scale similar to BAs total annual as indicated on that document. They also bottle stuff shipped to UK in bladder as well as consolidate shipments to bring overall shipment cost down which i doubt BA would be able to do, certainly not to the same degree.

Based on what I know, Aldi probably order similar volumes if not slightly more than Majestic and the other multiples vastly, vastly more.

TMM
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