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As the old saying goes…You get what you pay for, and in the wine world this saying couldn't be truer. When you take into consideration packaging costs, logistics, VAT, excise duty and total margins, you receive remarkably more value for money with higher priced wines.

The latest budget announced duty will be frozen on wines, spirits, beer and cider. While this is fantastic news for the consumer, excise duty is still a massive £2.16 per 75cl bottle. With the average bottle of wine in the UK retailing for £5.39 per bottle, only 60p YES THAT’S CORRECT SIXTY ENGLISH PENSE pays for the wine itself. The other £4.79 is broken up into the following:

  • Total Margin - £1.17
  • Excise Duty -  £2.16
  • VAT - £0.90
  • Packaging - £0.36
  • Logistics - £0.20

Comparing the above to a £10.00 bottle, you have £2.76 worth of wine. Or if you take an even higher priced bottle at the cost of £20.00, the money for wine is a whopping £7.09.

Not only are you purchasing a far superior wine the more you spend, you are in fact receiving so much more for your money. Although buying a £20.00 bottle of wine is four times the price of a £5.00 bottle, the quality of wine increases by a staggering 19 times.

This is why at Peach Hampers we carefully select all our wines and spirits to ensure our customers are receiving the best possible quality and price at all times.

We hope this has given you a small insight into Vinonomics. We would love to hear your thoughts on the topic using the comments box below.

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