The World in a Glass - The True Cost Of The Wine In Your Glass
WORDS: Ange Seddon
Have you ever been shopping for wine and mentally thought, ‘£X is my maximum’? Well, hopefully in the next few paragraphs I can explain why you may need to consider upping that maximum, especially if you appreciate quality in your glass.
Ever heard of Vinonomics? No? I thought it was a made-up word too, but apparently it’s a mechanism that breaks down the different costs that make up the price of a bottle of wine. The premium wine distributor Bibendum creates a graph each year after the Budget. Last year's alcohol duty, which came into force in February this year, really put further pressures into the system. The average bottle of wine sold is a remarkably low £7.07 here in the UK. So, we will start with that baseline, on a bottle with an ABV of 12.5% (the duty changes the higher the abv)
Excise duty. £2.87
VAT £1.18
EPR (glass tax) £0.08
Packaging £0.58
Logistics £0.20
Total margin £1.54
Money for wine £0.62
Eye-opening isn’t it? But when you do this exercise with a £20 bottle of wine, some of the costs do not change. The excise duty, EPR, packaging and logistics all stay the same. The VAT increases to £3.33, the margin £6.72 and the money for wine is £6.22, ten times the cheaper bottle. Go up again to a £30 bottle and the money for the wine is £10.88.
So, spending more doesn’t just mean better branding; it means that more money goes into the winemaking process, the quality of the grapes, which is where you will notice the difference. Cheaper wines often rely on additives to create a consistent colour, flavour and balance. It is made fast and in huge volumes; the aim is consistency. It is made to be drunk young. Better wines rely more on the quality of the grapes and the winemaker's skill. This wine has character and depth. This takes time and patience, proper attention, and smaller production.
The price tells us only part of the story. Once you begin to pay attention to the process, choosing wine becomes more about genuine appreciation of what is in your glass and less about labels or whichever shelf level you pick. Expensive does not guarantee great quality. Quality definitely costs more, but hype and scarcity can shift the price above the wine itself.
Good wine is subjective; it is simply a wine you enjoy. And, as I always say, context matters. Where you are and who you are with can make a wine taste fantastic, even if it’s a bargain bottle. But if you want to choose quality, knowing facts like the costs, the processes involved from the growing to the winemaking, can help you make more informed choices. Quality wine is more objective and is based on measurable. Industry professionals usually reach similar conclusions about its level of quality and craftsmanship, even if they prefer dissimilar styles. So, there is a guide there.
So, there you have it; how to discern the basic costs of wine.
But to be completely honest, things are changing.The climate is shifting in a way we cannot control, and we need to be aware of that. Wine may become more expensive for reasons that are beyond us. And here is why - France has just had one of the driest earliest harvests in recent memory. The Champagne region has set a record for its earliest harvest ever recorded.
Because of the excessive heat there are smaller berries, lower yields, and some vines are shutting down completely. There are some incredibly hard-hit regions. Places like Bordeaux had temperatures of almost 50 degrees this year, which reduced their yields more than 20%. Also, some regions were able to apply for emergency irrigation approval. This is rare and only is allowed in the hardest hit regions.
Having said all that, Spain has done really well. Their Tempranillo grape manages the heat much better than other grapes in so many regions, allowing them to fare better than France. Producers everywhere are now looking into which varieties will cope with the higher temperatures. When I was in Languedoc recently, they had been planting Albariño, a more drought-resistant variety.
Yields are lower and generally everything has become more expensive. So, if you are expecting a bargain bottle to taste good, I am afraid you may be disappointed. So, knowing how hard it is for the winemakers out there, I suggest branching out and spending a bit more than your maximum. I promise you will be more than rewarded. The wine world wants you to still enjoy excellent wine. You may have to pay a little more to get it. But that is the way life is now. It is important to support small independent wine shops, who will lead you to incredible wine producers.
It is tough out there for hospitality, restaurants as well as wine producers and shops. But you will be more than rewarded in the way of quality and something more exclusive than what you can get on the supermarket shelf.
This month I will not be doing a wine recommendation per se but will be recommending places where you can find not only incredible wines, but expertise who can guide you to wines you will enjoy as well as wines to celebrate.
@corkheatonmoor in Heaton Moor - corkofthenorth.co.uk
@iscawines in Levenshulme - www.iscawines.com
@lindenstores in Knutsford. Pioneers of the Knutsford Wine Fair - www.lindenstores.co.uk
@vinesofcheshire a vineyard and wine producer in Chester - vinesofcheshire.co.uk
@thepearlmcr- the first wine window in Greater Manchester - www.thepearlmcr.com
@chaptersbookbar - a combination of book shop and wine bar - chaptersbookbar.co.uk
@bodega_wines in Weir Mill in Stockport - bodegawine.co.uk
@salutwines in Manchester - salut.co.uk
@portfolio.mcr - such an incredible place if you want to learn about Champagne. Trust me, these guys know their stuff - portfoliomcr.co.uk
Cin cin et salute a tutti,
Ange
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