Low prices are the friend of wine producers - except the French

By Alex Singleton | 3 May 2005

Twenty years ago in Britain, French wines were the norm. Yet, today, I hardly ever find myself drinking French wine. OK, I do like Saint Emillion and find the odd glass of claret quite palatable. And terms of white wine, I like Pinot Gris or Alsace Gewurztraminer. I also rather like Bollinger.

Yet I very infrequently buy these wines. I prefer New World wines for the simple reason that they are better value for money. I know I'm not supposed to admit buying cheap wine, but I like Chilean Merlot, and I can buy a perfectly drinkable bottle for £2.99 from my local supermarket. I was in Tesco today and noticed that they are selling an Australian red for £1.89, and picked up an Australian Shiraz Cabernet for £2.68. I like Bollinger, but Mumm's (Californian) Cuvee Napa costs a lot less.

Yet we are now being told that we are acting immorally by buying cheap wine. We should pay more in order to give workers a "fair" price, buying wines only if they are certified as Fairtrade wines. This is nonsense. The fact that new world producers can produce good wine at low prices is what has enabled them to be in the business of selling to the Brits in the first place. If I felt morally obliged to buy more expensive wine, I might well switch to buying French. Indeed, French producers would be very happy if wine from other countries increased in price.

In general, low prices are useful friend of wine producers - the ability to undercut enables them to enter the market and gain a reputation. Fairtrade wine is yet another misguided price-increasing scheme.