Wine Prices Linked To Dow Performance
“How low is your net worth?” has become something of a recent social phenomenon. Just as people bragged about their (and their neighbors’) victories in the ballooing real estate market earlier this decade, people now almost celebrate how bad their 401(K) statements look. We’re at the point now where almost any story in any media (newspaper, blog, podcast, newscast) has to include some version of “In this difficult economic climate.” If you listen to NPR, you’ll hear it every four minutes.
It was only a matter of time that this invaded the world of wine. Crushpad sent an email to inboxes across the land this morning touting their new wine release: Bailout Napa Cabernet. Crushpad had some extra barrels lying around, perhaps having over-anticipated demand for boutique wine making… in….
wait for it….
these difficult economic times.
Yes! Awesome! Difficult economic times, you guys! Sweet.
Here’s the deal, the price is $39 per bottle and for each 100 point drop in the Dow between now and release bottling in August of 2009, the price of the wine drops $2 per bottle. And, you’re protected on the upside. If the Dow goes on a big run, you won’t be paying $100 a bottle.
Ooh, and there it is, right on the The Wine page
Plus, this is a great way for us to have a bit of fun in these dour economic times
Winner!
The kicker is that the price of the wine is $39 and the price starts moving with the Dow on the day you buy it. You can time this. Wait for a huge run up in stocks then sell your shares and go running to Crushpad to order your wine. Warren Buffet could buy up all the Bailout wine, move the market by himself, then have a sweet deal on his hands.
I have no doubt the wine will be good. I suspect that it’ll be closer in quality to $39 than the $75 that they’re hyping it up to be. Crushpad does have a history of getting some serious fruit. One wine maker in the Anderson Valley once told me that he “has no idea how Crushpad gets the fruit from the vineyards that they do.”
Bailout is a blend of fruit from premier Napa vineyards in Oakville, Mt. Veeder and Pritchard Hill that routinely go into $75 to $275 wines.
Sounds good to me, though not good enough to plunk down $100 for a two-bottle gift pack. I don’t think the Dow is going this way or that way with any resolve over the next year or so, so the odds of getting a steal are slim.
Bailout Wine product page.
