RE:RE:Pushback appreciatedThanks for feedback! I would agree with you that a large price increase won't be well received.
What I like about Peller is the Niagara experience. I changed my perception of the brand over years of repeatedly visiting the wineries. I would always head back to Toronto with a few bottles of icewine. Isn't it the ultimate advertisement? Its very profitable and creates a memory. I think Peller does a great job creating memories.
Most wineries do a good job but not a great job. I am thinking of industrial looking locations with a bland dark tasting room where the sampling process seems mechanical.
Pre Covid in 2019 the company had noted that the low end wine market was very competitive
"Through the second half of the year, sales were impacted by increased competition from new low-priced imported wines".
Management went on to say "our increased focus on higher margin products, and our cost control initiatives over the last few years to enhance efficiency and reduce costs. As a result, gross margin improved again in fiscal 2019 to 41.6% of sales compared to 41.3% in the prior year."
It feels like Covid has thrown the company off track. It would have been an ugly year without the Wine Sector Support Program grant. Eventually this grant will go away though.