reBlog from Jo Diaz: What Are The Marketing Costs For a $50 Bottle of Wine?

by Jana Harvey on January 8, 2010

I found this fascinating quote today:

  • 7% – cost of grapes and/or growing ~ $3.50
  • 9% – cost of wine making ~ $4.50
  • 4% – bottles, corks, boxes, labels ~ $2.00
  • 2% – marketing ~ $1.00
  • 13% – sales people, distribution from the winery ~ $6.50
  • 3% – administrative costs ~ $1.50
  • 2% – interest ~ $1.00
  • 4% – taxes to government ~ $2.00
  • 5% – actual winery profit ~ $2.50
  • 20% – wholesaler markup ~ the people who get the wines to wine shops and/or restaurants ~ $10.00 (There are lots of overhead and payroll costs involved at this level)
  • 31% – wine shop markup ~ $15.50 (There are lots of overhead and payroll costs involved at this level)
  • Jo Diaz, What Are The Marketing Costs For a $50 Bottle of Wine?, Jan 2010

You should read the whole article.

{ 1 comment… read it below or add one }

Mike Duffy January 10, 2010 at 4:48 pm

And the comments, too!
What do you think of Jo’s numbers?

Reply

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