Who doesn’t love a good discount? I know I do! I can’t remember the last time I paid full retail for anything outside of gas for my car and maybe at a restaurant. Sales and discounts have become a way of life and we all happily partake in the bearing of its fruit.

Closeouts are the ultimate discount and when you score one, it just makes the rest of your day that much better. And while there’s limited downside to buying closeouts in most retail categories like clothes or gadgets, for example, when it comes to wine, you better know a little something about how they work, where they come from, why the wine is being closed out, and if the closeout is actually worth it. Just like buying those “priced to move” pork chops at the grocery store, you need to be careful.

Whether you come across a wine closeout online or in a physical store, the first thing you need to do is look around. Consider who you are buying from. Is this a reputable wine shop, known for quality and service or is it a ‘liquor store?’ Do the price ranges on their shelves fluctuate from entry-level to collector level offerings and does their inventory turn over at all price points? You need to feel comfortable that the retailer isn’t trying to pass off a wine that is far past its prime or has some defect, because many times, these sales are final!

Once you feel like you know the retailer or at least have a comfort level with their integrity, you need to be able to identify why the wine is being closed out. The impetus for a closeout comes from one of three places and, believe it or not, once you determine who initiated it, you can often gain a clue as to the quality of the wine as well as determine your level of interest in purchasing the wine.

Where Wine Closeouts Come From and Why it Matters

Many years ago, closeouts stemmed mostly from the retailer’s need to rid themselves of wines that just didn’t sell and the options were, needless to say, less than palatable for the most part. These days, wine sales have taken such a strong foothold globally that many winemaking and marketing ‘entrepreneurs’ are getting into the game. As a result, there is way more wine being produced than there are wine drinkers. This along with an improved standard for winemaking has increased the level of quality in closeouts. Wineries, importers, and distributors are in a fluctuating state of over-supply, and even though the wine drinking population continues to increase, demand is still not such that it meets the levels of supply.

Closeouts be initiated by:

  1. The Winery
  2. The Importer/Distributor
  3. The Retailer itself

When a closeout is offered by the winery, it is most often the ‘safest’ type of closeout. Wineries need to maintain integrity and reputation in order to continue attracting consumers to their wine. Therefore, they would never initiate a closeout of one of their wines without the wine being of good quality and drinkable.

The winery closeout category typically represents the fewest number of closeouts due to, again, integrity issues. However, now we are talking about price integrity, or the winery’s desire not to see their brand sold at a considerably lower price to the SRP. Once a consumer gets a taste for a brand at a lower price point, it can be tough to turn them back to a paying customer at regular price.

Importers and distributors, like wineries, are more likely to initiate a closeout before a wine has turned or becomes undrinkable. They also need to maintain a high degree of integrity and protect their relationships with retailers as well as with their partner wineries. Therefore, if they closeout wine past its prime, they risk these relationships. Bad product is bad product and considering that most consumers are tasting a product for the first time when purchasing a closeout, there is no chance of them being a repeat customer if the wine is turned. First impressions are everything as they say and neither importers, distributors, nor wineries can risk that.

When retailers initiate a closeout, on the other hand, you really need to look at the opportunity with a close eye. Retailers typically closeout wine because it’s getting old. In my experience, retailers hold onto wine and try to sell it at the highest mark up possible, for as long as possible, and then close out the wine when it’s already too late. Mind you, there are many reputable retailers that do not fall into this category. As previously stated, you need to feel comfortable with the integrity of the shop you are buying from.

This is why it’s important to understand who initiated the closeout price. How long has the wine been in the store and what was the impetus to closeout the wine? Once you determine that information, it’s much easier to make an informed purchase.

Choosing Wine

Why Wine Closeouts Happen

On the surface, you may be able to think of a few reasons why wine would be closed out, such as its age, But in reality, there are many:

  1. The wine is, or is getting, old. a.k.a.. ‘over the hill’
  2. The winery/importer/distributor needs to start selling the next vintage
  3. The winery/importer/distributor has too much inventory of the current vintage on hand, and it’s not moving
  4. The winery/importer/distributor may have too many vintages of the same wine in stock
  5. The wine could be an off–vintage, meaning not a good year for that wine
  6. It could be a mistake (love these closeouts), and while rare, they do happen
  7. The retailer could have a good relationship with the winery/importer/distributor and a favor is called in

Before we delve into some of these, let’s first remember that a closeout is essentially a marketing term, connoting a higher than average discount or sale. Basically, a deal!

No one likes old wine, but we do like aged wine which is mature and complex. However, not all wines qualify to be aged. Therefore, inform yourself a little bit about varietals and regions to be able to make a determination of whether a wine is old or aged. This topic was referenced in a previous post about the current landscape of wine clubs, indicating that you need to educate yourself to be able to determine if you are getting a deal. Buying closeouts is really no different. So do a little reading. Here’s an over-simplified article that will help:  Ageworthy Wine Traits. Remember that, as a general rule, inexpensive wine, comparative to its category, is typically not ageable.

When a winery/importer/distributor are either ready to start selling the next vintage, have too much inventory of the current vintage, or have multiple vintages of the same wine on hand, it creates a fantastic opportunity for the consumer. Remember, it’s a numbers game and these are businesses. When inventory accumulates, they lose money. Their loss is your gain.

These types of closeouts are most often the best opportunities. Not only are the wines generally quite drinkable, but they are true, legitimate discounts from the original SRP.

More and more, we are seeing wines being sold at heavy discounts as a result of the suppliers’ need to move out inventory. Sometimes retailers put the “closeout” marketing spin on the sale, but not always. And this is why it’s important to note that just because something is presented to the consumer as a closeout, doesn’t mean it’s past its prime. At the end of the day, whether it’s a closeout or simply a good discount, a deal is a deal.

How to Find the Best Wine Deals

You can find winery/importer/distributor closeouts somewhat regularly at larger, more reputable retailers, but you can also find them at small independent mom and pop shops too. The one constant among the shops getting these deals is that they all represent quality and integrity. The likelihood of you finding such closeouts at the local corner store, whose offerings range from $4 to $20, is slim to none .

These deals are happening everywhere. And when I say everywhere, I mean everywhere. Thousands of shops nationwide are presented with closeout opportunities all the time. This is obviously a great thing. However, from a consumer perspective, it can be difficult to find these opportunities. At this point you may be saying, ‘If these opportunities are everywhere, why are they so hard to find?’

Although the wine industry is $38 billion, yes billion, strong in the U.S., it is made up of small entities for the most part. Therefore, closeouts and deals end up getting spread out over many outlets, large and small. You can visit your local shops and even sign up for newsletters from online retailers nationwide which will inform you when they have noteworthy deals. The problem, however, lies in the third sentence of the previous paragraph. Can you spot it?

If you said ‘thousands of shops,’ you won! Or really, you lose. Unless you signed up for all 1,000+ retailer newsletters, you would only know about a very small, small handful of deals floating around. Fortunately, all is not lost.  There is a way to stay informed without clogging up your inbox.

You can stay up to date on the best closeouts and deals on a regular basis via Wine Kloud. I’ve seen closeouts up to 89% off and I regularly see deals in the 60% to 70% discount range. These offers are represented by wines with quality and integrity, many of which have solid scores from rating publications such as Wine Advocate, Wine Spectator, Vinous, etc. Many deals even have free shipping options.

Wine Kloud aggregates and publishes closeouts and deals being offered by this group of over 1,000 online retailers nationwide as they happen on a daily basis. And the best part? Wine Kloud vets every offer and retailer that gets published on the site. A team of wine professionals ensures accuracy and objectivity so that you can trust the information without having to do any homework.

Here are some of the more notable deals found on Wine Kloud recently.  Deals like these come and go fast, as you may imagine, and although some of them are pretty hard to believe, I assure you they are all legit.  Notice not only the difference between SRP (Suggested Retail Price) and closeout price, but also the ratings, price point range, and the freshness of the vintage comparative to the category.  Most of these shouldn’t be closeouts, but indeed are due to the reasons previously explained:

  1. 2012 Chalone Chardonnay – 91 pts WE – SRP $30, Closeout Price $8.99
  2. 2011 Rivetto del Comune Barolo Serralunga – 93 pts WE – SRP $75, Closeout Price $30
  3. 2012 Jaboulet Aine Hermitage La Chapelle – 97 pts WA – SRP $300, Closeout $109
  4. 2009 San Prudencio Depadre Rioja – 93 pts VM – SRP $100, Closeout Price $19.99
  5. 2010 Quinta la Rosa Reserva Douro – 94 pts WE – SRP $52, Closeout Price $10
  6. 2009 Chateau Pavie St. Emilion – 96 pts WA – SRP $416,  Closeout Price $149.99
  7. 2010 Andersons Conn Valley Eloge – 93 pts VM – SRP $95, Closeout Price $39.99
  8. 2011 Le Salvioni Cerbaiola Brunello – 96 pts WA – SRP $220, Closeout Price $73
  9. 2010 Veuve Doussot Cuvee Ernestine – 92 pts VM – SRP $110, Closeout Price $39.99
  10. 2012 Ata Rangi Pinot Noir Martinborough – 94 pts JS – SRP $66, Closeout Price $27.97
  11. 2012 Le Dome Rouge Saint Emilion – 95 pts WE – SRP $115, Closeout Price $39.98
  12. 2013 Beringer Chardonnay Private Reserve – 94 pts VM – SRP $46, Closeout Price $20

Whether you collect wine or simply buy as you drink, there are a lot of options on Wine Kloud to fit everyone’s budget.  Depending on the retailer’s location, shipping may or may not pose a hindrance. But more often than not, you will likely find that most retailers will ship to you.

And here’s a helpful hint: set up some ‘Wine Trackers‘ on Wine Kloud to have all of the deals that match your interests sent to your inbox. Simply set up a search and track it. Your search can include price parameters, ratings range, varietal, desired discount percentage, vintage, free shipping options, etc. You can make it as specific or nonspecific as you’d like it to be.

Wine is about exploration, discovery, and enjoyment. Just because some magazine article or blog piece sold you on the wonders of Pinot Noir doesn’t mean you should overpay for it, and you don’t have to. When you surf the closeout rack at your local retailer, be careful. Buying that heavily discounted wine could be an amazing find or a complete disaster. Educating yourself just a little bit will help you mitigate that risk.

Happy Hunting!

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