Picture this; You're browsing wines in your local store, you see a bottle with a nice appealing label, for only €8, and without giving it a second thought it's in your basket, bargain! But have you ever stopped to think of how that wine got there, how much it cost the importer to bring it thousands of miles across land and sea, or how much time and effort was invested into making the wine? Many of us don't realise just how difficult and complex the process is. We also don't realise that a 'cheap' or 'discounted' bottle most likely has very little of the cost dedicated to the liquid itself, which often means low quality or even mass produced (but that topic is for another day).
Let's talk about the financials of wine, a topic not discussed enough in Ireland. For instance, did you know that we pay the highest rate of Excise duty in Europe? That's right, a bottle of still wine attracts €3.19 in excise, with a bottle of sparkling at a hefty €6.39. Don't forget the VAT of 23% on top of that. As importers of wine, I wanted to summarise the costs and challenges involved. I believe it's important for every wine drinker to have the whole picture.
Once the bottles are paid for, we add transport costs (most of our wines travel over 15 000 km's). Then we pay the excise duty and VAT, followed by an addition of a small mark up (no merchant would survive without a profit margin). Finally we factor in other costs such as postage and packaging - we use the latest (and expensive) protective packaging to ensure your wines arrive safely - And finally we have the everyday running costs of the business.
The business of wine is a complex one, but we do the hard work so that you don't have to. Please get in touch if you need any tips and we'll happily provide our recommendations to ensure you are buying the best wine to suit your taste.
Our full range of fantastic South African wines can be found Here