- The land value which depends on the area (1 HA in Champagne cost 1,1 M€ when it cost 12 K€ in Beaujolais…)
- The Grape: It cost more to grow the delicate Pinot noir than the versatile Chardonnay
- The vine growing conduct type: Conventionnel needs less labour but expensive products when organic stand at the exact opposite, so depending on the labour cost you will find organic wines more expensive in Europe and less expensive in Chile for example.
- The yield. To make great wines you need a low yield that’s why usually they are more intrinsically expensive. You can understand where the difference sit between a yield of 70 Hl/Ha and one of about 12 Hl/Ha.
- Being or not being part of an AOP or a label such as Demeter, BioDyvin…as external organisations are assessing the quality, this service has to be paid.
- Packaging. with no surprise buying wine in bulk is less expensive than in bottle, so bag in a box offer great deal, and then depending on the shape of the bottle, the weight all of this could change the final price.
- Taxes. In Uk there is a duty on the top of the 20% VAT, this duty is around £2 per bottle of still wine and £3 for sparkling. It’s calculated depending on the average alcohol content. In France this is really low, around 8 centimes par liter.
- Transportation…indeed. The heaviest the bottle is the more expensive it will be. Again wine in bulk will save money. Which means the biggest is your order the less transportation cost will impact the final price.
- Marketing, Branding. The nicest the label the more you are paying (expect bad marketing), the more the wine is known the more expensive it could be sell. Champagne is a good example of this rule, the difference in price between a vine grower and a big brand is not always justified.
- The vine grower and wine makers needs to eat. Elementary! You cannot sell a product under its cost price !! The basic addition of growing, winemaking cost, plus transport, plus distribution and finally everyone’s wages should define the wine price.
My recommandation in UK, the best value for money are find in wines with a price standing between £12 and £30…Select an independent wine merchants or Waitrose.