Cost Breakdown of a Wine Bottle Sale
When you buy a bottle of wine, it's easy to complain about the cost you pay for it. But it's important to remember that a lot has gone into having that bottle sitting on the wine shop shelf, waiting for you to pick it up. And, as much in life, the hard workers rarely get that profit! Here is where the money tends to go when you pay for that bottle of wine.
7% - cost of grapes / growing
9% - cost of winemaking
4% - bottles, corks, boxes, labels
2% - marketing
13% - salesmen, distribution from the winery
3% - administrative costs
2% - interest
4% - taxes to government
5% - actual winery profit
20% - wholesaler markup - the people who get wines to wine shops
31% - wine shop markup
So, as you can see, the winery really isn't making much at all here. In fact, the running joke in the winery business is that the best way to make a small fortune in wines is to start out with a large one. Many winemakers actively lose money. But they do something they love, and hope that they share that passion with people who appreciate it.
If you're a fan of a winery - go visit them! Buy their products right at their doorstep, get them shipped to your home. The more that you can directly support their efforts, the more chance that they will survive and thrive.