Consumers demand cheaper wines

The customer service columnist of The Sunday Times, Adrian Muscat Inglott, is planning to list in his column and website the outlets that have reduced the price of their foreign wines.

This will be done following complaints by consumers that the drop in importation costs since EU membership has not yet been reflected in their restaurant price.

With effect from May 1, levies were removed from imported wine but almost two months after Malta joined the EU, consumers are still not always benefiting from reductions in the price of foreign wines in restaurants.

Mr Muscat Inglott has even received complaints that a hotel chain "had the nerve to increase both the local and the foreign wine", with the local wine increasing by Lm2 from Lm5.50 to Lm7.50 a bottle.

It would appear that restaurants have "agreed" not to reduce the price of wine, leaving consumers with no choice, the complainant said.

"It is grossly unfair that the decrease in prices is enjoyed by the restaurant owners at the expense of the consumers," she said.

If asked, restaurant owners would probably argue that they had a stock of wine on which they had paid the levy. But had the situation been reversed and prices gone up instead, within a week, the wine price list would have been adjusted, the consumer said.

Moreover, businessmen were aware that the price of wine would decrease after May 1, so it is likely that none of them kept a huge amount of wine in stock. "If they did so, the consumer should not pay for their mistakes," she said.

Consumers have suggested compiling and publishing a list of catering establishments that have adjusted their prices to reflect the drop in the cost of wines in the hope that other restaurants would follow suit. It would be similar in concept to the list of pharmacies that do not charge a waiting fee to patients visiting a doctor on their premises.

Mr Muscat Inglott explained that now that Malta has joined the EU, the island should maximise on market forces in view of the changes taking place.

"Consumers have incorrectly assumed that restaurants are supposed to cut prices straightaway. But it is not the case as we now operate in a liberalised market," he said.

"It is all about competition and the onus is on the consumers to maximise on the prevailing scenario.

We must work closely and share information with a view to taking our custom to those traders and outlets prepared to reduce prices accordingly."

Mr Muscat Inglott encouraged traders and outlets to maximise on competition by reducing prices and consumers to identify those establishments that offered the best deal and reward them with their custom.

However, not all restaurants have ignored the drop in prices. Julian Sammut, of Rubino's, in Valletta, said his prices went down as soon as the new wines came in. A quality Chablis now costs Lm7 .75 when it used to be over Lm10.

"Restaurateurs have to make a fair profit on wine but that should not exceed 100 per cent in my opinion because it is simply not justified. On the other hand, they should focus on making money out of food.

"It gives me great pleasure to see people enjoying wines they would not normally drink or, at least, only on special occasions," Mr Sammut said.

Malcolm Azzopardi, general manager of Hotel Juliani, which operates three restaurants, was also all for the reduction in wine prices and felt that customers would benefit in two ways: they could drink table wines at cheaper prices and better wines at reasonable prices.

In fact, Mr Azzopardi intended to offer added value by introducing superior wines, which would cost the same as lower-quality ones, and would be taking the opportunity to improve the all-round quality of the wine list.

One of the hotel's restaurants, which had a shorter list of wines and a faster turnover, was already offering cheaper prices. But, due to the large cellar with a vast stock of wines in another restaurant, the changeover was still in process.

Mr Azzopardi maintained that the customer had always enjoyed added value with wines as profits were never as high in Malta as in other European capitals.

Confusion on the issue stemmed from the fact that prices of wines were not marked up as they should and restaurateurs were finding it hard to let go of the cash generated from the sale of a bottle of wine.

It could take up to 40 hours and more to create a wine list, not to mention buying, storage, temperature controls and service, which meant employing a sommelier. Stocking wines in a restaurant could entail an investment of thousands of liri, Mr Azzopardi said.