WTN: 2005 Cono Sur Ocio Pinot Noir

2005 Cono Sur Ocio Pinot Noir Casablanca (85%) and Leyda (15%) Valleys 14.1%
(US price $50/Chile price $58/Brazil price $199!!!; 300 cases made)

In a fit of experimental largesse, Marcia picked up a bottle of this so we could experience the best (supposedly) that Chile has to offer in terms of pinot. Though Brazilians are used to paying double for southern cone wine and triple for European wine, I was shocked at the quadruple being charged here for this. Moving on: dark ruby color. Elegant nose of cherry and vanilla. Before food, the acidity is strong and upfront, and the alcohol is prominent. The cherry tastes sour at first, and becomes candied with aeration and food. Faint notes of smoked meat, sous-bois, violets, peppers and cloves. Despite “12 months in new French oak, medium toast,” the vanilla is balanced with the fruit and surprisingly delicate but, as with most southern cone pinots, I find the alcohol too high for the delicacy of this grape. A refined wine, made with the assistance of Martin Prieur (from Domaine Jacques Prieur), but one that does not appear, at this early stage, to promise magic. And, at this price, I demand magic!

(US price $50/Chile price $58/Brazil price $199!!!

These prices are all in USD? Wow. That is a big difference. And I agree, I would want magic or at least some of the Grand Cru burgundy that can be found for the same price.

These prices are all in USD?

Yes! Unbelievable...

Yes! Unbelievable...

Why is that? Taxes? Why should you pay 4x as much as Americans do for a wine that is produced much closer to your market?

Yes! Unbelievable...

Why is that? Taxes? Why should you pay 4x as much as Americans do for a wine that is produced much closer to your market?

The 100% VAT here makes the price double the American price for southern cone wines (for which we have a free trade agreement, so no import duties) and triple for the rest of the world (for which there are significant import duties). So I would guess that, for the Cono Sur, the quadruple price is 25% cost, 25% tax, and 50% speculative greed.

The 100% VAT here...

Is that just for alcohol? I thought the State VAT (ICMS) varied and was roughly 17-18% in Sao Paolo and then the National VAT (IPI) was about 20%, which admittedly is higher than the rates in the US which are usually less than 10%. But still not 100%?

The 100% VAT here...

Is that just for alcohol? I thought the State VAT (ICMS) varied and was roughly 17-18% in Sao Paolo and then the National VAT (IPI) was about 20%, which admittedly is higher than the rates in the US which are usually less than 10%. But still not 100%?

I don't know the individual (federal, state, municipal) components that make it up but 100% is the rule of thumb that everyone uses here. Not just for alcohol, for most things, especially cars, from sales of which which the government makes a killing.

These extraordinarily high consumption taxes, terribly regressive, are to compensate for the also extraordinarily high rate of income tax evasion and the huge informal economy. Both symptoms of a young (twenty year old), and therefore still very immature, democracy, thanks to the military dictactorship that held sway for 30 years (before that it was pretty much undemocratic too).

The 100% VAT here...

Is that just for alcohol? I thought the State VAT (ICMS) varied and was roughly 17-18% in Sao Paolo and then the National VAT (IPI) was about 20%, which admittedly is higher than the rates in the US which are usually less than 10%. But still not 100%?

I don't know the individual (federal, state, municipal) components that make it up but 100% is the rule of thumb that everyone uses here. Not just for alcohol, for most things, especially cars, from sales of which which the government makes a killing.

These extraordinarily high consumption taxes, terribly regressive, are to compensate for the also extraordinarily high rate of income tax evasion and the huge informal economy. Both symptoms of a young (twenty year old), and therefore still very immature, democracy, thanks to the military dictactorship that held sway for 30 years (before that it was pretty much undemocratic too).

Aha, forgot about municipal. But, anyway you slice it, sounds very high and yes is EXTREMELY regressive.

Anyway, glad there was some pleasure in the bottle.

I saw Ocio for over 340,000 CLP in Santiago last March. At the time that was about 100 USD. It is about $45 here at home. It's one of the only instances I've ever encountered where the local price was higher than at home -and much higher at that.

Cheers,
Bill

I saw Ocio for over 340,000 CLP in Santiago last March. At the time that was about 100 USD. It is about $45 here at home. It's one of the only instances I've ever encountered where the local price was higher than at home -and much higher at that.

Cheers,
Bill

In my wine-searcher experience, almost every wine costs less in the US than in their home country. Never ceases to amaze me...

I saw Ocio for over 340,000 CLP in Santiago last March. At the time that was about 100 USD. It is about $45 here at home. It's one of the only instances I've ever encountered where the local price was higher than at home -and much higher at that.

Cheers,
Bill

In my wine-searcher experience, almost every wine costs less in the US than in their home country. Never ceases to amaze me...

I don't regularly use wine-searcher (I'm wary of storage conditions employed by retailers I don't know), but I am always shocked by some of the low prices. Is it really so difficult for these guys to get full price from their customers? It's a race to the bottom.