Factors Affecting Wines Prices
The equation of your wine
Here at Vinifero we would like to be as transparent as possible with our customers, and for that reason we want to explain the reason of our prices, that can be seen higher that the ones found at mass-market retailers (e.g. Coop).
Let’s not get too bogged down in the maths, but it’s worth taking a look at the three examples below with selling prices at 15 CHF, 30 CHF, and 45 CHF to demonstrate that as you pay more per bottle, an increasingly higher percentage, is actually for the stuff you enjoy, – the wine!
At the lower priced end, it’s nearly all fixed costs and taxes (at 15 CHF a massive 50.7%). In short and without surprise you get a better drinking experience by paying a bit more.
Certainly above the 15CHF price mark, wine appreciation and knowledge will start to play a larger part in what enjoyment and value is to be had from your bottle, and of course this is subjective. At Vinifero we buy wines across a wide price spectrum, but a lot of our focus is in the 20 – 30 CHF range where real affordability and organic quality meet.
Other factors affecting wine price
There’s a whole bunch of these, such as grape type and indeed the area it is grown. For example grapes from Montalcino will most likely be more than double the cost of the same grapes from Pistoia province, where land is cheaper. The push and pull of varying currency exchange rates and any weakness of the Swiss Franc can have profound influence on price also.
Yields in the vineyard are also a factor (remember lower yields meaning better quality), and hand picking compared to machine harvest, whether the wine is aged in oak, and so it goes on. Weather during the vintage regularly cause problems with losses of between 5-50% not uncommon. One of our producers a few years ago lost more than 90% of his crop in a ten minute hail storm! Being a wine (especially organic wine) producer can be a tough and unpredictable career!
The organic price
As previously said, organic, biodynamic, and natural wines have many of the same fixed costs and taxes as conventional wines, but you may wonder why they tend to cost a bit more.
It is because yields are often lower and work on an organic/biodynamic vineyard is more labor intensive; there is a also a small (tiny in percentage terms) cost for organic/biodynamic certification (or, in case of natural wines, natural winemakers association membership), harvesting most commonly is done by hand and with organic, there is no safety net for the crop, in case there’s an issue with pests or disease.
All Vinifero organic/biodynamic wines are certified, while natural winemakers are member of trustworthy associations, and this ensures that our customers receive a real organic product rather than a “maybe”.
Image credits: Mike Benna