Why Premium Wines are Expensive?

Ever wondered why the wine you are paying for is so expensive?

Here are a few factors that affect the price of a wine which can bring wines to sell in the premium range.

Geographical Location can play an important role in deciding the price of the wine. If the vineyard is present in a highly-reputed wine region where the land rates are high, it would naturally make the prices of these wine soar.

  1. Manpower related factors such as labor cost and winemaker’s fees can be another reason for that costly drink. For small wineries, the number of laborers employed too can direct the cost of the wine. Winery paying a hefty salary to its winemakers can influence the price of the wine too. 
  1. Viticulture and Winemaking related factors are mentioned below-
  • Yield and Grape Selection

If the yield per hectare is less for a winery and the selection is of only premium quality grapes it would make the wines more expensive.

  • Type of Wine

If dry white wines are to be made, there is a need of using more grapes to produce same quantity of wine which is normally produced. This increases the input costs. That is how premium white wines attain high price levels. If the wine is to be produced is sparkling, then additional process, such as disgorging of wine, takes place which can add to wine’s cost. Thus, costs related to the nature of wine being made.

  • Oak Aging

The Oak barrels in which the wine is aged do not come cheap. They can raise the price of the wine which is stored for aging purposes. At times, the period of storage can be many years and the overhead costs attributed to these wines on per unit basis are far higher that the wines which are consumed young.

  • Vintage Year

If for a year, the wine production had not been significant and the demand is high then the new price to tackle demand may hurt the customers pocket.

  1. Advertising of the brand can bring good dividends in later stages but, initially, it is expensive for the fresh wines.Organic wines
  1. Imported Wines are more expensive as they incur additional transport cost and taxes. 
  1. Organic Wines can be more expensive as the processes and efforts are different and the path to getting certified often difficult. Even the time taken for preparing the farmland suitable for producing organic white wines or red wines is very long which increases the costs.

 

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