But the fact remains that most years producers are allowed to harvest an additional 20 per cent of wine above the 45 hl/ha limit, and the average yield of appellation contrôlée wine in the Bordeaux region is always more than 60 hl/ha. Australia is an extremely important wine producing country, both in terms of quality and the scale of its wine economy. At top-growth level a hectare planted with vines sells for 5 million francs. Currently, the best value (in our opinion) for champagne in Australia is Cattier Non Vintage Champagne 750mL at a standard price of $42.00. However, we still have our Cabernet to pick and the acidity is refusing to come down. All our neighbours seem to have started harvesting the Cabernet. Cost: under $4 The lowest quality tier “Extreme Value Wine” includes some familiar labels such as Gallo Family Vineyards, Sutter Home, Crane Lake (Bronco Wine Co), Tisdale (a Gallo brand), Rex Goliath (Constellation Wine brand) and several bag-in-a-box brands (with a cost per bottle below four dollars). Many producers cut off excess bunches in summer to keep yields in check. Want to have wine brownies deliver to Australia. Production of say 4 tons/acre, ie, 260 cases/acre with the average retail price of $60/bottle or average FOB winery of $360.00/case to the trade, neglecting cellar door sales. Pull the cork on a $100 bottle of wine and an age-old question emerges along with the aromas: is this bottle worth 10 times as much as a $10 bottle? New South Wales: Liquor Act 2007. Standard price is $40.00 but you can get it for $28.00 with a discount. It is also true that the figures shown in the table are the latest estimates available for what the CGCAG, the Centre de Gestion et de Comptabilité de la Gironde – the official Bordeaux agronomic monitoring agency – would describe as typical properties, rather than the outstandingly good or bad. So I was prompted to send you this piece from the wires in respect of Codorniu buying vineyards in the Napa. Sainsbury’s Garganega Pinot Grigio 75cl   £3.98, Chablis, La Chablisienne 75cl                 £8.99, Sainsbury’s Beaujolais Villages 75cl         £5.99, Chateau David Bordeaux 75cl                £5.00, Sainsbury’s Champagne, Extra Dry 75cl   £16.99, Australia: Orlando Coolabah Dry Red Cask 4 litre is, England: Sainsbury’s Bulgarian Cabernet Sauvignon 3 litre is. A bottle of this vintage red will cost you $21,200, but according to experts, it’s well worth the investment. Results show Ans. As the referee (un-biased of course) I say you should choose……. This gives us average revenues/acre of $ 93,600, with average farming cost of $ 3500 + financing cost $8000 & cost of $10/bottle or $120.00/case. But what irritates me beyond words (and does you too I suspect) is the sheer silliness of cult/garage prices and their effect on the market in general. Sample costs to establish a vineyard and produce wine grapes under drip irrigation in the Sacramento Valley – Sacramento River Delta (Sacramento and Yolo counties) are presented in this study. A $100 wine that cost $50 when it left its maker may have cost as little as $25 to produce. But I'm prepared to accept Allan Sichel's suggestion I need to go to Bordeaux to investigate this further. You state that it 'costs next to nothing to make', at FF 5 per bottle and that the 'typical ex-cellar price per bottle' is Ffr11. It is unusual to see a wine writer looking at the economics of production. A wide selection of glasses, goblets, flutes, presentation boxes, decanters and essential wine accessories have been carefully selected and are accompanied by a list of over 80 quality wines to make choosing an ideal wine gift easy. I am sure each of you will have a different interpretation of that last statement. The legal limit for Pauillac in 2000 was about 58hl/ha. It certainly wasn't for financial gain but out of a love for wine and to experience a wonderful way of life. Bordeaux will be unable to back down from its opening prices for 2000, unfortunately, and we are facing a somber period when even those who can throw money around will hesitate to do so. At least the wines are good and will not be a dead weight on the market as the 1984s were. Very expensive bottles over $1000 typically come from some of the world’s most exclusive wineries. If the legal limit for Pauillac in 2000 was 58hl/ha, practically all growers must have pushed pretty close to it if they managed an average of 55hl/ha. If the legal limit for Pauillac in 2000 was 58hl/ha, practically all growers must have pushed pretty close to it if they managed an average of 55hl/ha. So Bob, may I impose on you one last time.We don’t know oz at all and I would dearly like to have your recommendations as to which cities/places to live. I assume it is a mixture of wine sold to cooperatives, to negotiants en vrac and to wholesalers in bottles. 1. Postscript from Michael Banton on learning I had asked Waitrose's Bordeaux buyer for the ex-cellars prices of AC Bordeaux and AC Medoc. This was when prices briefly went mad for the 1997 vintage. There is a small, but growing, number of excellent Bordeaux AOCs who have invested and taken the risks necessary to go up market. A sparkling red wine, served chilled, which is ideal for special occasions. Penfolds Grange Hermitage 1951 – $38,000. Quite a profitable business. The pour cost of your glass pour should be the same as the wholesale cost of one bottle—that is, about 20-25%. Extreme Value Wine. In our case this totals about Ffr4 a bottle. Sydney was too crowded for me. Again, I am indebted to you, and if I ever get the chance I would gladly have a beer slide down the bar to you. Ultimate Winery Experiences Australia is a consortium of high-end, award-winning wineries offering behind-the-scenes wine, food and adventure experiences including barrel, private and structured tastings, food and wine matching, wine blending and cooking classes and picnics in spectacular locations. I’ll save you the maths and just tell you that Australian cheapo wine is $3.60 per litre whereas the cheapest I found in the UK was $7.86 per litre. However, I think the selling price of Ffr11 is misleading. In Australia it's a critical success factor to clearly relate the capital/running costs with those of final wine quality/price. Glenn Brummitt. A good white wine runs about 9.00 a bottle. Four bottles of wine plus one bottle of champagne in the UK costs of £40.95, but you can deduct 5% for buying more than six bottles. Many small wineries produce a very limited batch of champagne each year or each few years, further making their wines desirable. A dry white for special occasions which compares well with one of the better Chablis. Now to convert the UK cost to Australian dollars; £38.90 times 1.817 AUD to the pound, slightly better than last week, equals $70.68. The first Australian wine on the list is the Penfolds Grange Hermitage 1951. This is at odds with the local press which continually refers to the makers of AC Bordeaux as being 'in crisis'. Previous post: A New Milestone in My Australian Life. The Thienponts of Le Pin for example, admittedly some of the least rapacious proprietors of a wine that sells for four and sometimes five digits per dozen, told me that they estimate their per bottle production costs are under Ffr50 a bottle. Occasionally some natural hazard shrinks the yield to below this maximum permitted level. Select Region: Africa America Asia Europe Oceania 1. These official figures have been calculated assuming a thoroughly traditional high-density vineyard planted with vines a metre apart, so 10,000 plants a hectare. Thanks for the thumbs up on my site, much appreciated. What It’s Really Like to Be Bitten by a Redback Spider, Interstate Rivalry in Australia: A Few Nicknames, Australian Cuisine and Some Foods I’ve Managed to Avoid, Spring in Australia and an Early Start to Bushfire Season, Bondi to Coogee Beach: A Sunday Walk Unlike Any Other, Moving to New Zealand Instead of Australia, RSL’s and Other Drinking Establishments in Australia. But as far as I am aware, there is no similarity at all between the two countries. Possums and Opossums: Australia and America. However, bottling and labelling costs about Ffr4 a bottle, which is not apparent from your table – it would increase the cost from Ffr5 to Ffr9 per bottle. It is worth noting how very much more profitable the top end of the Bordeaux wine pyramid is than the bottom, basic AC Bordeaux end. The full retail price of this wine is $8.99 but you can pick this up for as little as $6.30. I would also like to indicate that the 45hl/ha yield is the average yield for wines of classed growth level and not an upper legal limit as your article seems to indicate. Hi Bob, On the domestic market, Australian wine is estimated to account for 494 million litres, making up 82% of the total sales volume in 2019-20. As for yields, the official regulations for the appellation Pauillac for example cite specifically that the 'rendement de base' is fixed at 45hl/ha and that the 'plafond limite de classement' is just 20 per cent, suggesting that 54hl/ha is a workable maximum yield in the best of years. However, I think the selling price of Ffr11 is misleading. Life in Australia – Moving to Australia – By BobinOz. The pour cost of your glass pour should be the same as the wholesale cost of one bottle—that is, about 20-25%. No matter what the occasion the gift is for – be it a Birthday gift, Anniversary gift, Christmas gift , Valentine's Day gifts or Mother's Day gift, Wine Only has the perfect gift to help you add to the celebrations. If one takes the example of sales en vrac, I suspect the reason your selling price is so high is because it represents the exceptional year, 1998. On the other hand, Mrs BobinOz does enjoy a glass of wine as previously mentioned. The current en vrac price for basic red AC Bordeaux is Ffr6-7500 a tonneau: equivalent to Ffr5-6.25 a bottle! Bordeaux Supérieur is selling for Ffr7500-8500 a tonneau and the white wine is selling for half this. Taking into account the current low exchange rate and the fact that Australian salaries may be up to 31.7% higher, wine here just gets cheaper and cheaper. The girl who cuts my hair comes from New Zealand, emigrated here about four years ago. We finished harvesting our Merlot last week and the initial impression is a very positive surprise. An Australian reaction also follows... and another from the wine writer I find more admirably sympathetic, Gerald Asher of Gourmet magazine. Oh, cancel all that, just read your last line. It creates the impression of a very profitable business. You must have JavaScript enabled to use this form. A wine bar is likely to have higher costs than a college bar serving mixed drinks with cheap liquor. Saleries are higher in oz but houses are dearer on average. I haven’t been to Perth, but I think it’s too isolated. Do you do anything like that? Bob, Dear Ms Robinson I have read your articles and books over the years with great enjoyment. Whoever wants to buy less than six bottles? But would you rather sell a table a $200 bottle of wine at a 40% pour cost, or 4 glasses of $8 beer at a 20% pour cost? This wine retails at around $20.00 but you can buy this wine for $14.00. This was when prices briefly went mad for the 1997 vintage. Indonesia: 21.42 $ – bring his total cost per bottle to €2.88. Source: ‘Vintage 2014: New Zealand wine industry benchmarking survey’ – a joint publication from Deloitte and New Zealand Winegrowers, December 2014. How does this compare with UK wine prices? While that final judgment rests with the person pulling the corks, there are certain costs related to different wines. And a more recent note from Michael Banton who has owned Chateau Rouquette in the basic Bordeaux appellation for the last four years. We have 2 kids aged 8 & 5 so have to consider if a climate may be Too hot! I don't expect to get a Huntsman suit, after all, for the cost of the fabric and thread. So England’s wines are 17% dearer than wine in Australia. This is a genuine champagne from the Champagne region of France. I did not expect to be surprised, for in theory I was supposed to be passing on what I had already learnt elsewhere. Qatar: 26.21 $ 2. Next post: Fire Safety in Australia: Prepare, stay and defend or go early. Singapore: 22.50 $ 3. Chart: Bottle of Wine (Mid-Range), Markets. So that becomes £38.90. Use a Montrachet yeast (8-10% alcohol) and honey as the sweetener, and yum. The cheapest wine possible. If you follow this rule, you should make your money back on a whole case of wine after selling just 3 bottles or 12 glasses of wine (assuming four 6oz glasses per bottle). I have read your articles and books over the years with great enjoyment. Wine Australia's 2018 annual report describes it as the sixth largest wine producer in the world. My So and I drink about 500 ml a night. For much of the 20th century even classed growths were run at a loss. Waitrose will presumably be paying Ffr11 for a bottle, and not buying the wine in bulk and paying for the bottling. But let’s cut to the chase. Penfolds Grange Hermitage 1951 – $38,000. The top destination market was mainland China, accounting for 39% of the exports by value. Furthermore, a typical well run classed growth might cost Ffr28 a bottle to produce, but costs for a first growth or really ambitious second growth could be substantially more than this if teams are sent several extra times through the vineyards to trim surplus leaves and grapes, or not all grapes in a vineyard are picked concurrently. If you’re not expecting to come over for a couple of years, you will get lots of information over there during that time. A bottle of this vintage red will cost you $21,200, but according to experts, it’s well worth the investment. Of course, the reason the selling price of basic Bordeaux is so low is because there is a lot of very poor wine around under the appellation name. “You’ll love the dark berry and chocolate flavours, and the soft, fine tannins of this medium bodied Cabernet Sauvignon and Merlot blend. You have to squish about 600 to 800 grapes to get each bottle of wine (anywhere from three to 10 clusters of grapes, depending on the grapes), but vine spacing, row spacing, vintage conditions, the variety and age of grapes all play a part in how many grapes you get from each acre. Factors affecting the auction value of a bottle of wine The legal limit for Pauillac in 2000 was about 58hl/ha. Since this comprises the greatest number of vineyards in the Gironde, with the top wines a minority, it is important for the region as a whole. This study is intended as a guide only, and can be used to make production decisions, determine potential returns, prepare budgets and This would raise your cost from Ffr5 to Ffr9 a bottle and cut the profit from Ffr6 to Ffr2 a bottle. However, that is another story! All but the last line of these figures, which is based on my own research, are estimates by CGCAG. We are now doing the legwork for a move over to oz or nz. Find out about the benefits of becoming an account customer with Australia Post. This explains the feeling of crisis in much of the Bordeaux wine trade, outside the grands cru. (That’s if you think your guests are worth the extra couple of bucks.). So that becomes £38.90. Many thanks again for your time, it is very much appreciated. Living In Australia, Copyright Web Products PTY Ltd 2008 – 2019. The four Sichel brothers who have succeeded their unusually wise father Peter A Sichel in looking after the family firm seem still to have the odd bottle of Ch Palmer 61 in their cellars...  And here's further input from Brian Fletcher, chief winemaker at Calatrasi in Sicily, involved among other things with Tunisia's first promising bottled wine exports (stocked in the UK by Majestic Wine Warehouses): Dear Jancis, I saw your article regarding the cost of wine in Bordeaux and this is a further insight into relationship between land price and bottle price. But if a vineyard is exceptionally placed and carefully tended, then both chemical and human inputs are low, and so therefore are costs. Does that help? All our neighbours seem to have started harvesting the Cabernet. Generally, sending wine to the UK and Japan is pretty good – and taxes for one, 750ml 14.0% ALC/VOL wine bottle (for example and at the time of publishing this article) are approximately $15. Robinson on Sichel (who is the kindest and most generous supplier of statistics on Bordeaux): While it is true that an increasing number of Bordeaux properties are owned by companies with shareholders who seek a return, there are still many – including many of the well known classed growths and their equivalents on the other side of the Gironde – which have been in the same hands for years and have no need of amortisation or shareholder dividends. All prices are for bottles with no damage or ullage. West, (Perth) has much milder winters. If you follow this rule, you should make your money back on a whole case of wine after selling just 3 bottles or 12 glasses of wine (assuming four 6oz glasses per bottle). But I'm prepared to accept Allan Sichel's suggestion I need to go to Bordeaux to investigate this further. “Elegant assertive wines with glorious fruit flavours”. Singapore: 22.50 $ 3. All Rights Reserved. So I was prompted to send you this piece from the wires in respect of Codorniu buying vineyards in the Napa. If costs are Ffr5 a bottle, then the profit per bottle on basic red Bordeaux wine is between Ffr0- 1.25 per bottle. In Australia it's a critical success factor to clearly relate the capital/running costs with those of final wine quality/price. A wine that leaves the winery costing the buyer €2 or $2.40 a bottle (or $28.80 per case, based on an exchange rate of $1.20 to the euro), would end up costing the consumer $9.99 in the US after shipping, taxes and markups.. Melchiskey calculated that it would cost $10 to get the case from the winery, pay the duty and land it in a warehouse in the US, increasing the case cost … Chart: Bottle of Wine (Mid-Range), Markets. WINE PRODUCTION x the bottle or in the supermarket, or even conveyed by the TV wine expert. This is a Mushroom! One last question-sorry. It is against the law to sell or supply alcohol to, or to obtain alcohol on behalf of, a person under the age of 18 years. All Explained. This explains the feeling of crisis in much of the Bordeaux wine trade, outside the grands cru. If your comment doesn’t get answered, find out why….. Fire Safety in Australia: Prepare, stay and defend or go early. Quite a profitable business. Australia’s Best Beers and Lagers by BobinOz. And the Best City in Australia to Live in Is…. You need not make your readers feel sad on our behalf: we bought the vineyard four years ago with eyes wide open! She claims not to be an expert, but trust me, she is! I expected to be daunted by the task: overwhelmed at first, bored in the middle and downright incredulous at the end. These discounts range between 10% and 30% depending on the store and the kind of offer. Or, view previous article: For Brits only – fine wine arrives at Tesco, Typical production costs in Bordeaux (Ffr). It may even be better than our 2000. The reader could be misled into thinking that the Bordeaux wine industry is an absolute racket and that the tight legislation is only approximately abided by... which it is not! We have no regrets, quite the contrary! I only hope that does not change in the next couple of years! The Australian Wolf Spider: Is It Dangerous? We visited the Sirromet Vineyard the other week, it is our local winemaker and is only around 25 km from here. The Australian wines are currently $10.38 cheaper than the wines in England. I am working here with two other Australian winemakers exploring the potential of Nero d'Avola in Sicily, Primitivo in Puglia and Carignan in Tunisia. All but the last line of these figures, which is based on my own research, are estimates by CGCAG. Seeing the wine improve is the reward we wanted! New Zealand has a population of around 4 million people, has beautiful lush countryside and the weather is very similar to the UK’s.
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