Wednesday, June 15, 2016

BREXIT May Wreak Havoc In Bordeaux And England

As of next week the world may brace for the unknown of the unknowns as the Brits vote for remain or leave the EU.

As of now the french are whining about declining sales of wines (amongst other products) as the sterling keeps tumbling. Brazilian readers may not understand the impact of just, say 5% in exchange rate devaluation or valuation, but the cold truth is that in long-consolidated markets the margins tend to be razor thin and any basis points can cause do or die.

I bet the English companies that own several portuguese port wines aren't happy at all with the possible outcome. They produce and import port into english wines counting on the benefits of being home.. and given a Brexit all that may be tossed in the air.

I'm glad my ideas about the whole affair are in line with the decanter... guess i'm not that bad of an analyst, but that was just a matter of connecting the 3 dots.

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