Now there you may have a point.
Why undercut your own more profitable products? Particularly when you have no problem selling all the lower priced stuff in the local market.
I do consider California wines overpriced because I have to go to $4.99 to get a really wide selection. There is some pricing pressure coming from Australian imports but that's still mostly at the $4.99 level and up.
On the other hand, the French are having such a hard time selling their wines they've been petitioning the government to allow even some of the better ones to be distilled into industrial alcohol. It's no wonder you can get some sound wines cheap. If the French figured out how to market their surplus over here you'd see some significant price pressure on California products.
