Perhaps every wine lover will have such a question. When you choose wine in a supermarket or shopping mall, the price of a bottle of wine can be as low as tens of thousands or as high as tens of thousands. Why is the price of wine so different? How much does a bottle of wine cost? These questions have to be combined with factors such as production, transportation, tariffs, and supply and demand.
Production and Brewing
The most obvious cost of wine is the cost of production. The cost of producing wine from different regions around the world also varies.
First of all, it is important whether the winery owns the plot or not. Some wineries may be leasing or buying land from other wine merchants, which can be expensive. In contrast, for those wine merchants who own ancestral plots of land, the cost of the land is negligible, just like the son of the landlord’s family, who has land and is self-willed!
Secondly, the level of these plots also has a great impact on production costs. Slopes tend to produce better quality wines because the grapes here receive more sunlight, but if the slopes are too steep, the grapes must be done by hand from cultivation to harvest, which incurs huge labor costs. In the case of the Moselle, planting the same vines takes 3-4 times as long on steep slopes as on flat ground!
On the other hand, the higher the yield, the more wine can be made. However, some local governments have strict control over production in order to ensure the quality of wine. In addition, the year is also an important factor affecting the harvest. Whether the winery is certified organic or biodynamic is also one of the costs to consider. Organic farming is admirable, but keeping the vines in good shape is not easy, which means more money for the winery. to the vineyard.
Equipment for making wine is also one of the costs. A 225-liter oak barrel for about $1,000 is only enough for 300 bottles, so the cost per bottle immediately adds $3.33! Caps and packaging also affect the cost of wine. Bottle shape and cork, and even wine label design are essential expenses.
Transportation, customs
After the wine is brewed, if it is sold locally, the cost will be relatively low, which is why we can often buy good quality wine in European supermarkets for a few euros. But often wines are often shipped from producing regions around the world, and generally speaking, wines sold from nearby countries or countries of origin will be relatively cheaper. Bottling and bottling transport are different, more than 20% of the world’s wine is transported in bulk containers, one container of large plastic containers (Flexi-Tanks) can transport 26,000 liters of wine at one time, if transported in standard containers , usually can hold 12-13,000 bottles of wine in it, about 9,000 liters of wine, this difference is almost 3 times, really easy! There are also high-quality wines that cost more than twice as much to ship in temperature-controlled containers than regular wines.
How much tax do I have to pay on imported wine? Taxes on the same wine vary widely in different countries and regions. The UK is an established market and has been buying wine from abroad for hundreds of years, but its import duties are quite expensive, at around $3.50 per bottle. Different types of wine are taxed differently. If you are importing fortified or sparkling wine, the tax on these products may be higher than on a regular bottle of wine, and spirits are usually higher as most countries usually base their tax rates on the percentage of alcohol in the wine . Also in the UK, the tax on a bottle of wine over 15% alcohol will increase from $3.50 to nearly $5!
In addition, direct import and distribution costs are also different. In most markets, importers provide wine to some local small wine merchants, and the wine for distribution is often higher than the direct import price. Think about it, can a bottle of wine be served at the same price in a supermarket, bar or restaurant?
Promotion picture
In addition to production and transportation costs, there is also a part of publicity and promotion costs, such as participation in wine exhibitions, competition selection, advertising expenses, etc. Wines that receive high marks from well-known critics tend to be significantly more expensive than those that do not. Of course, the relationship between supply and demand is one of the factors that affect the price. If a wine is hot and the supply is very small, it will not be cheap.
In conclusion
As you can see, there are many factors that affect the price of a bottle of wine, and we’ve only scratched the surface! For ordinary consumers, it is often more cost-effective to buy wine directly from an independent importer than to go to a supermarket to buy wine. After all, wholesale and retail are not the same concept. Of course, if you have the opportunity to go to foreign wineries or airport duty-free shops to buy wine, it is also quite cost-effective, but it will take more physical effort.