What goes into the cost of a bottle of wine?

As you exit your local wine store with a new bottle in your hand, do you ever wonder how much the winemaker actually profits from your purchase?

The profit is dependent on the years of storage required and the grapes used, but for your average bottle of wine in the $15 to $30 region, a typical breakdown is shown below.

What does that mean for your favorite vineyard? For that $20 bottle of wine, they are pocketing only around $1 in profit.

There are those who cite this as a good reason to buy directly from the winery as they can keep more of the profit. Some smaller vineyards now only sell direct through wine clubs and tasting rooms as they can’t be profitable using distribution channels.

For some people, the recommendations of their local retailers help them find what they like and introduce them to new and different wines.

What do you think? Buy direct, or support your local retailer? Or is a combination of both really the perfect blend?

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