News

Is Aldi’s £3.49 Cairanne too good to be true?

11 December 2024 By James Bayley

Aldi’s viral sensation, the Specially Selected Cairanne, made its highly anticipated return last week – at the jaw-dropping price of £3.49, down from its usual £8.49.

While shoppers might celebrate the substantial 58% discount, questions are being raised about the sustainability of offering wines at such low prices.

The Cairanne, a southern Rhône red blend of Grenache, Syrah, Mourvèdre and Carignan, was well received upon its debut last year. It sold out in just four days after Jane MacQuitty of The Times called it “Aldi’s Christmas present to the nation”.

This year’s pricing has sparked curiosity and debate. With Alcohol Duty accounting for no less than £2.67 of each bottle sold, and additional costs such as VAT, bottling, shipping, and production to consider, it seems Aldi is selling the wine at a loss. Promotions like this are a hallmark of the retail sector, where Nielsen data reveals six in ten wines are sold at a discount. Yet, the sheer scale of this markdown raises eyebrows.

Is it sustainable?

Selling high-quality wine at rock-bottom prices may drive volume but could also pressure producers to cut costs in ways that compromise quality or strain resources. The Cairanne’s blend, which has won awards in the past, suggests significant effort and cost went into its vinification.

Further complicating the picture is Scotland’s minimum unit pricing (MUP) policy, which prohibits the sale of wines below 65p per alcohol unit. With the Cairanne’s 14% ABV, at 750ml the wine cannot legally be sold for less than £6.83 in Scotland.

For shoppers, the opportunity to purchase at such a low price is undeniably appealing. Available from 2nd December, this festive favourite is expected to sell out quickly, as it did last year. However, for industry insiders, the wine’s return at £3.49 prompts larger questions about the future of pricing strategies and their impact on the broader wine market.

Is this promotion a bold marketing move that benefits consumers, or does it risk undervaluing the craftsmanship and sustainability of winemaking? The answer may hold implications far beyond the holiday season.

Aldi breaks Dry January records

Texas' largest winery acquired by investors