Why do companies in the hospitality industry purchase wine as part of a group?

When purchasing wine, you will often find that the best deals come from wholesale wine merchants. Buying groups specializing in wines are a fairly new idea. There have always been wine merchants who specialized in selling fine wine to wealthy individuals, but this new trend is different. The millionaire club continues to grow with more people joining the super rich elite every day. Many of these people like to buy fine wine. With some wines readily selling for such high prices, it can be difficult for potential buyers with more modest funds to get a look in amongst such high spending deals. Specialist wine buying groups are now starting to take on these monopolies. These are formed when a collection of like-minded enthusiasts pool their resources in order to compete with the big spenders. Such clubs vary in formality, business models and size but the idea of strength in numbers is key to their success. Whether the members of the group are buying wine for the investment value or for the enjoyment, either way there is a great deal of pleasure in acquiring a really good cellar of fine wine. There are many business advantages to involvement in a buying group. A larger wine order leads to cheaper prices per bottle so each member gets a great deal. These groups are particularly popular with hospitality businesses as well as collectors. Alone, a restaurant owner may not be privileged to such wines but by being a member of a buying group they now have the option. This can have a significant effect on the customer base of the restaurant. A prestigious wine selection goes a long way among certain types of customers and will keep them coming back again and again. Working in a wine buying group, members can also access exclusive merchandise which may not be available on the open market. Usually groups are formed by people spread across the country, so that the products they share are still perceived as exclusive in their region. So you are getting exclusive produce at a better rate but still remain the only restaurant in town that sells the vintage. The group still gives its members a great deal of flexibility. Those who invest less money for instance will receive a smaller percentage of orders. This is great for companies that dont want to hold a large amount of stock. These smaller orders pool together and soon create large orders. What was once an extremely exclusive trade is now becoming available to many more people due to wine buying groups.