Enjoy Life

The real cost of your wine

When taxes, packaging and the retailers’ share have been stripped out, Graham Sherwood finds the value of wine left for the poor old drinker is sobering

Barely a week goes by without my wife exclaiming after a trip to the supermarket: “Look how much packaging there is in this box.” It’s usually followed up with: “This could be half the price if it was just in a bag and not a box.” Ironically, even though she is as much a wine lover as I am, she never airs the same disparaging views while uncorking a bottle of wine. And she would never extol the virtues of a box over a bottle where wine is concerned either.

It seems the cost of producing a bottle of wine is largely consumer-proof; basically we don’t care. So here’s a sobering thought. The taxable cost to every adult in the UK for alcohol consumption last year was £316 per head, double that of any of our European neighbours. The total figure of £16.3bn is drawn from both the VAT and duty levied on beers, wines and spirits by our government. However, when you look at the cost of producing a bottle of wine and – more to the point – the actual value of the wine in the bottle itself, your hackles do tend to start rising.

Below are a couple of examples, break- ing down who takes what out of, first, a £5 bottle of wine, followed by a £10 bottle. While these figures are rounded for simplification, they are quite accurate. Contained in the column headings – taking ‘value of wine’ as an example – are items such as the cost of the glass bottle, corks, labels and packaging. After all these are stripped out, the poor old winemaker doesn’t make a massive margin, does he? Inevitably, the retailer always does best, even taking into consideration the cost of advertising and promotion.

Government duty rates also vary depending on the alcoholic strength of each style of wine or spirit. Currently it is £2 per bottle of still table wine. However, for a bottle of Champagne, Cava, Prosecco or any other sparkling wine with an alcoholic volume of more than 8.5 per cent abv (which is pretty much everything), the duty rate is £2.56 a bottle.

The news for lovers of port wine isn’t better either; duty currently stands at £2.67 a bottle, whether you buy a £12 bottle of ‘late-bottled’ vintage port or a £40 bottle of the real McCoy.

Whiskey, gin, cognac and vodka drinkers must currently stump up a massive £7.41 per bottle as their contribu- tion to the government each time they buy their favourite tipple. No wonder the tax-free cross-Channel ferries still do a roaring trade.

When you look at the two examples quoted, it is easy to see that by doubling the price paid from £5 to £10 a bottle, the consumer is actually getting nearly four times the value in the wine itself. The big question, however, is: does the consumer appreciate this from a quality perspective. Many experienced wine drinkers will say they do, and the majority will agree while falling for the ‘placebo ‘perception of the higher price paid.

» To Continue Reading the Full Article, Click Here

Do you like your wine? What do you think ot the quality and price of supermarket wine? 

To keep up to date with all the latest from Choice, or if you have something you want to share with our team, follow us on Facebook, Twitter, Google+, Instagram and YouTube

Other stories in Enjoy Life

Great Christmas Music Ideas
Christmas books - gift ideas
Autumn Reads
Summer 2024 Books
Summer DVDs
Summer CDs
Latest book reviews
May DVD Reviews
May's book reviews
May's CD reviews
That English Riviera Touch
April's DVD reviews
April's book reviews
April's CD reviews
March's DVD review
March book reviews
March's CD reviews
February's DVDs
February's books
Winter books
January's DVD releases
Christmas book reviews
November DVD reviews
November's Music Reviews
November book reviews
October's DVD reviews
October's New CD releases
October's book reviews
September's DVD Reviews
DVD selection for August 2023
September's book reviews
Latest music reviews August 2023
August Round up
August Paperback Reviews
August hardback book reviews
July 2023 Roundup
Pick of the paperbacks July 2023
July 23 Hardback book reviews
July 2023 DVD releases
July 2023 CD reviews
Pick of the paperbacks June 2023
June DVDs
Hardback book reviews - June 2023
Simon Evans CD Reviews for June 2023
Tesco Summer indoors and out
Book reviews
May 2023 paperback book reviews
May 2023 Hardback book reviews
May's DVD Selection
May's CD selection
Round up of April 2023's book reviews
April 2023 paperback reviews
April 2023 Hardback book reviews
More March 2023 must-reads
March - Pick of the paperbacks
March hardback recommendations
Afternoon Tea
March 2023 - DVD releases
March 2023 Music
February 2023 Books Round up
Pick of the paperbacks - February 2023
Book reviews February 2023
DVD recommendations
February's music reviews
Freedom on two wheels
Make do and mend
Foray into the Fens
Christmas reads
Tasty, healthy recipes by Joanne Wood
Keeping fit and healthy with the Green goddess Part 2
Keeping fit and healthy with the Green goddess Part 1
Finger-licking Good! Tasty Chicken recipes
Beauty: Say 'Allo 'Allo to an alluring look
British Library: Palace of the printed word
Look good and feel great with CBD
Interior design: Inspiration for outdoor spaces
Summer fun at Belvoir Castle
Finding Fitness Starts With Fashion
‘In Vogue’ Veg – Cavolo Nero Sales Grow by 14%
Eat Continental and live longer
A life-affirming book... about death
Get Sewing: Floral bespoke notebook cover
Find your family fortunes... for FREE!
Beauty: Get set for spring...
Spanish Recipes: Small is beautiful
The Vegan Revolution
Interior Design: Maximise your living space
Pets need a spring clean too
Visit Family Tree Live
MasterChef: Classic with a Twist
Get Sewing: Quilted pot-holder
Bob Dylan "Rock and Roll music wasn’t enough for me”
Plant Power Day: 7th March 2019
Interior Design: Less is more in minimalist home
A second chance at love
Interior Design: Great Gatsby Cabinet
The rise and rise of the birthday cake
Walking back to happiness
Baking With Veg
Totally Tina Tour
How to take care of your hair over-50
The nation's most popular cake recipes
Your views: Can you help?
Hail the grandparent aupairs
Beauty: Denise Welch "I love the shape I'm in at 60"
The Austerity Olympics
Healthy reasons to acquire a taste for olives
Grand Treats for Grandchildren
Declutter your home, and clear your mind
Scandi-style Mules for Swollen Feet
Beetroot and Walnut Cupcakes with Cream Cheese Frosting
In your garden: October
Dr Norman Croucher: The toughest summit of them all
Craft Corner: Sweet Easter Basket
Have your cake and eat your Easter egg too!
Interior Design: Moroccan inspired drawers
BR remembered... 70 years on
A gentleman's guide to spring fashion
Why antique jewellery is glittering
New Year, new beauty habits
Cliff Richard "I have a deeper faith now"
Do you remember? Oliver!
What we really look for in retirement living
Interior Design: Wedding bells on a budget
Counter culture: The revival of the board game
Jodie Whittaker: "Doctor Who is all about change"
85 year old Grandmother gains a PhD
Dame Eileen and a Crowning glory
Writing the story of you life
Why winter shouldn't stop you: don't wait until New Year
World' first 'wellness shed' stirs up mindfulness
Growing old is amazing
Don't miss out on the internet age
Prepare to feel ancient...
Hawks: Up close and personal
Studious retiree heads back to school
Garden Expert: Soaking up the sun
Emily Watson "I'ts such a gypsy life"
Here's to you Mrs Robinson
Brits Embracing 'Urban Birding'
Volunteering for Nature
The Secret to Younger Looking Eyes
Anti-ageing Options Part 2
Anti-ageing Options
End of the road for a pop icon
Reaching out to Dementia Sufferers: Sporting Memories Network
Are you ready for retirement?
Afternoon Tea Recipes
Surprisingly Good Wholegrain Recipes: Savoury
Staying safe in the Summer heat: Drowning prevention
Stardust Memories
Baking made easy
Cooking for one