What makes up the price of wine

What's in question

The range of prices for wines can be impressive to an inexperienced buyer. You can buy a bottle of domestic wine for the price of a couple of cups of coffee, or you can find a wine that costs more than the average salary in the region. Where does this variation come from and what makes up the price of wine - says Zbovtai.

Land and vineyard

Land is always expensive. Land that is suitable for growing grapes is even more expensive, but it also requires soil analysis and the participation of specialists. This is why, for example, famous French wines are often expensive - plots ideal for grapes are sold for huge sums of money that the producer needs to return. And that's not all. Creating a vineyard is a long, laborious and expensive procedure. Finding a suitable vine can take a long time, and the first harvest sometimes takes several years, and all this time the winemaker does not earn.

Vine age and yield

The older the vine, the better and richer in taste and aroma the wine is, but it also produces fewer grapes. In addition, yields are often artificially limited to achieve the same result. All of this requires more labor costs with less wine produced, which increases the price.

Employees and equipment

The winemaking process is both art and creativity, as well as technology, often high technology, tens and hundreds of people engaged in work, equipment that needs to be purchased, maintained and repaired. Often, these factors account for a large part of the price.

Bottle and cork

The bottle itself has a price, and many manufacturers resort to unusual solutions to stand out on the shelf - bottles of unusual shapes, bright colors, made of perfume glass, etc. The cork used also makes a contribution - cork and glass corks are expensive, while artificial or screw caps reduce the price tag.

Scale of production

The cost of wines from small or novice producers is often high, which is explained by their slightly different approach to winemaking. While globalists create wines for the mass market - high-quality, but simple and understandable, small farms strive to create high-quality or even great wines, which requires rare equipment, special control over the process, expensive barrels of small volumes, etc.

Taxes and margins

Wine, like any alcohol, is subject to special taxes, excise duties and customs duties, which can add up to a significant cost per bottle. Store margins are also worth keeping in mind - popular or famous wines are often sold at an inflated price.

Transportation, storage and marketing

Oil prices are rising, and warehouses need to be paid for, including special refrigeration equipment that some wines require. Let's not forget about advertising and marketing activities, which are also paid for by the end consumer.

Wine can be both expensive and very affordable, and what is cheaper is not always bad. Nevertheless, you shouldn't skimp on wine, but you should be sober about your willingness to pay for it. Maybe there is something more interesting and cheaper nearby?

Update: 19.07.2021

Category: Wine and Vermouth