This was when prices briefly went mad for the 1997 vintage. 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. 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. 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. This sparkling wine was created by Alexander Amosu and contains a blend of Pinot Noir, Pinot Meunier, and Grand Cru… You need not make your readers feel sad on our behalf: we bought the vineyard four years ago with eyes wide open! We visited the Sirromet Vineyard the other week, it is our local winemaker and is only around 25 km from here. Allan Sichel is right in the main thrust of his argument, and I have no objection to classed growths selling, even at the property, for ten times the raw cost. It is unusual to see a wine writer looking at the economics of production. Or, view previous article: For Brits only – fine wine arrives at Tesco, Typical production costs in Bordeaux (Ffr). All our neighbours seem to have started harvesting the Cabernet. Previous post: A New Milestone in My Australian Life. Pricing Wine by the Glass. So the English wine is more than double the cost of Australian wine. It creates the impression of a very profitable business. Blackberries are a weed here in Oregon, so I decided to make my own. Join the membership area, it’s free to register, then when it opens you will be one of the first to know. This explains the feeling of crisis in much of the Bordeaux wine trade, outside the grands cru. They do not include the cost of land or anything that happens once the wine reaches the bottling line. But I'm prepared to accept Allan Sichel's suggestion I need to go to Bordeaux to investigate this further. I am not sure if it was with a crop, either way.... 'Spanish cava and premium wine producer, Codorniu has completed the purchase of 74 hectares of vineyards in Foss Valley situated in Napa Valley, California, for a sum of $7.42m'. (There is some excellent, reasonably priced wine in this category, which rarely seems to appear in the UK.) “PV is handcrafted by our winemakers and delivers a wine style superior in colour, balance, structure and finesse”. She claims not to be an expert, but trust me, she is! If comparing beer prices was difficult, comparing the price of wine in Australia to the price of wine in England is almost certainly an impossible task. Obviously you'd make far more in profits doing the former. Standard price is $40.00 but you can get it for $28.00 with a discount. 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. I have just read your article [in the FT]. Living In Australia, It may even be better than our 2000. That is two 8 oz glasses. Gerald Asher adds: Allan Sichel is right in the main thrust of his argument, and I have no objection to classed growths selling, even at the property, for ten times the raw cost. And a more recent note from Michael Banton who has owned Chateau Rouquette in the basic Bordeaux appellation for the last four years. Whilst I think your cost price is about right, this selling price is much too high today. So this article relies heavily on the opinions of my wife. This is an excellent quality budget light red wine which has a retail price of around $7.00 but can often be bought for around $5.00. The so-called 'garage wines' so fashionable on the right bank in and around St Emilion and Pomerol that are made in tiny quantities and with vast amounts of manipulation and human input (each barrel practically has its own personal midwife) may cost even more than a first growth to produce. 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. This gives us US$40,000/acre. 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. The low value is then calculated from the average accumulated hammer price at auction from multiple Australian wine auction houses over a 6 month period (where data is available). I attach a graph I keep showing monthly en vrac prices for the latest vintage of Bordeaux Supérieur. All Rights Reserved. We finished harvesting our Merlot last week and the initial impression is a very positive surprise. My article in the Financial Times on 15 September is reprinted below, along with a response from Allan Sichel of the eponymous house in Bordeaux, with an interest in several Bordeaux châteaux. New Zealand has a population of around 4 million people, has beautiful lush countryside and the weather is very similar to the UK’s. It comes in what they laughably call a cask here in Australia, a wine box in the UK, but is in fact the same as the kind of carton you would get long life milk in. 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. And that is the question that will be answered (over time) in the membership area. I don’t really know Australia well enough to tip the top five cities, but here’s what I know so far. We're biting our fingernails, checking the grapes twice a day, and praying for the two or three hot days we need! While his wine costs €1.06 per bottle to produce, the cost of bottling – €0.52 p.b. The first Australian wine on the list is the Penfolds Grange Hermitage 1951. 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. Whoever wants to buy less than six bottles? Australia exported 729 million litres of wine in 2019-20, valued at $2.8 billion (FOB). At top-growth level a hectare planted with vines sells for 5 million francs. Beer Prices, Australia Wine, Postscript from Michael Banton on learning I had asked Waitrose's Bordeaux buyer for the ex-cellars prices of AC Bordeaux and AC Medoc. In Australia, a similar selection cost $60.30. 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. I should explain that the variations in prices are because most outlets give discounts for purchasing six bottles or more. This wine has a full retail price of around $10.00 but can often be purchased for as little as $7.00. With best wishes, Different establishments will have different pour costs. Tagged as: 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. In our case this totals about Ffr4 a bottle. It may even be better than our 2000. Flowers, Gift Baskets, Chocolates and other gift products also served for delivery in Australia. I expected to be daunted by the task: overwhelmed at first, bored in the middle and downright incredulous at the end. Nowadays it is common for wine drinkers to be asked to pay ten times that for Bordeaux's more sought-after wines, a year before they even reach the bottling line. Hope that gives you a rough idea and good luck, whichever country you decide to go for. It will be open next month. When you send Australian wine overseas, you will be charged import taxes and duties by the customs officials in the country you are sending to. Australia’s Best Beers and Lagers by BobinOz. Fantastic site-v. informative, thank you! 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 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. At top-growth level a hectare planted with vines sells for 5 million francs. Occasionally some natural hazard shrinks the yield to below this maximum permitted level. Bordeaux Supérieur is selling for Ffr7500-8500 a tonneau and the white wine is selling for half this. 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. An Australian reaction also follows... and another from the wine writer I find more admirably sympathetic, Gerald Asher of Gourmet magazine. But I'm prepared to accept Allan Sichel's suggestion I need to go to Bordeaux to investigate this further. Wine Australia's 2018 annual report describes it as the sixth largest wine producer in the world. This is at odds with the local press which continually refers to the makers of AC Bordeaux as being 'in crisis'. The Australian wines are currently $10.38 cheaper than the wines in England. But if a vineyard is exceptionally placed and carefully tended, then both chemical and human inputs are low, and so therefore are costs. All but the last line of these figures, which is based on my own research, are estimates by CGCAG. Life in Australia – Moving to Australia – By BobinOz. And always have done. 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. When you send Australian wine overseas, you will be charged import taxes and duties by the customs officials in the country you are sending to. In Australia, a similar selection cost $60.30. Quite a profitable business. These wineries own small vineyards that allow for the ultimate control of quality, sugar content, and end-product. You will see how it briefly exploded in 1998 but has since returned to the levels it has been at for many years. The full retail price of this wine is $8.99 but you can pick this up for as little as $6.30. 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. This was when prices briefly went mad for the 1997 vintage. And, you know, if you like your jug wine or your mass-market, corporate-produced moscato, don’t let some jerk like me tell you to go buy a $20 bottle … See also the report on the 2001 harvest in Bordeaux from Jean-Michel Cazes of Ch Lynch Bages. As this survey is done only every two years, the most recent available for the Atlas were those for 1998. Source: ‘Vintage 2014: New Zealand wine industry benchmarking survey’ – a joint publication from Deloitte and New Zealand Winegrowers, December 2014. 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. Pricing Wine by the Glass. I really don’t think so, my daughter (5) has never complained about the heat and just loves the outdoor lifestyle. And now yet more feedback from Michael Banton of Chateau Rouquette. And, you know, if you like your jug wine or your mass-market, corporate-produced moscato, don’t let some jerk like me tell you to go buy a $20 bottle … We're biting our fingernails, checking the grapes twice a day, and praying for the two or three hot days we need! Penfolds Grange Hermitage 1951 – $38,000. So I was prompted to send you this piece from the wires in respect of Codorniu buying vineyards in the Napa. Obviously as the wine is consumed the available quantity decreases and, if it is drinking well, it becomes even more desirable and the price spirals upward. 13. Glenn Brummitt. 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. This is a long way from your Ffr11 figure. This phenomenon has little or nothing to do with connoisseurship, the aesthetic of wine, or even sensual pleasure. 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. 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. A dry white for special occasions which compares well with one of the better Chablis. 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. But again, you can pick this up with a 30% discount and get it for $29.40. In markets such as the UK, with a high level of alcohol duty, his wine would be positioned well above the average spend per bottle. 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. 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. 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