Did you ever wonder why you pay $50 for a bottle of really well crafted wine?
For a $50 bottle of wine, within the three-tier system, here’s how it breaks down:
- 7% – cost of grapes and/or growing ~ $3.50
- 9% – cost of wine making ~ $4.50
- 4% – bottles, corks, boxes, labels ~ $2.00
- 2% – marketing ~ $1.00
- 13% – sales people, distribution from the winery ~ $6.50
- 3% – administrative costs ~ $1.50
- 2% – interest ~ $1.00
- 4% – taxes to government ~ $2.00
- 5% – actual winery profit ~ $2.50
- 20% – wholesaler markup ~ the people who get the wines to wine shops and/or restaurants ~ $10.00 (There are lots of overhead and payroll costs involved at this level)
- 31% – wine shop markup ~ $15.50 (There are lots of overhead and payroll costs involved at this level)
The more often you buy a bottle of wine directly from a winery, the more profit there is for the wine company owners. Because there’s more profit, it allows for those with advanced social consciousness to take better care of their workers, and they do. This exists even more so if the wine company is also growing its own grapes.