How is the cost of wine calculated?
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The most obvious cost of wine is the cost of production. Wine production costs vary from different regions around the world.
First of all, it is important whether the winery owns the land. Some wineries may lease or purchase land from other wine merchants, which is a significant expense. In contrast, for those wine merchants who own ancestral land, the cost of the land is negligible. It is like what we often say about the son of a landlord. He has land and is willful!

Secondly, whether these plots are flat or not also has a great impact on production costs. Slopes tend to produce better quality wines because the grapes here receive more sunlight, but if the slope is too steep, the entire process from cultivation to harvest must be done by hand, which incurs huge labor costs. Taking the Moselle as an example, planting the same grapevines on steep slopes takes 3-4 times as long as on flat land!
On the other hand, the higher the yield, the more wine can be made. However, some local governments have strict control over production to ensure wine quality. In addition, the year is also an important factor affecting the harvest. Whether the winery is certified organic or biodynamic is also one of the costs to consider. Although organic farming is admirable, it is not easy to keep the vines in good growing condition, which means the winery needs to invest more money. To the vineyard.

Equipment for making wine is also a cost. A 225-liter oak barrel that costs about $1,000 is only enough to hold 300 bottles of wine, so that immediately adds $3.33 to the cost per bottle! Caps and packaging also affect the cost of wine. Bottle shape and cork, and even wine label design are essential expenses.

If the wine is sold locally after being brewed, the cost will be relatively low, which is why we can often buy good-quality wine in European supermarkets for only a few euros. But often wine is often shipped from the production area to all parts of the world. Generally speaking, wine sold from nearby countries or countries of origin will be relatively cheaper. Filling and bottling transportation are different. More than 20% of the world's wine is transported through bulk containers. A large plastic container (Flexi-Tanks) can transport 26,000 liters of wine at a time. If a standard container is used for transportation , usually 12-13,000 bottles of wine, or about 9,000 liters of wine, can be packed inside. The difference is almost 3 times. It’s so trouble-free! There are also some high-quality wines that cost more than twice as much to ship in temperature-controlled containers as ordinary wines.

In addition to production and transportation expenses, part of it is publicity and promotion expenses, such as participating in wine exhibitions, competition selections, advertising expenses, etc. Wines that receive high scores from well-known wine critics tend to be significantly more expensive than wines that have no ratings. Of course, the relationship between supply and demand is one of the factors that affects the price. If a wine is very popular and the supply is small, its price will not be much cheaper.