What Dictates Wine Prices?

What makes a bottle of wine carry a certain price tag? And how can there be such a huge difference in the price of wines throughout the country and the world. I mean isn't it all pretty much the same thing...grape juice? Ah... this is where it gets a bit complicated and certainly a bit subjective.

There are many factors considered when pricing a certain wine. Probably the biggest consideration is time. Time is the most expensive thing in life and wines that take more time to process and age, generally and appropriately bring in a higher price point. That is the reason red wines are usually more expensive than whites. Reds are aged longer. Some red wines can spend several years aging before release. Reds are almost always aged in oak barrels too and oak barrels depending on what forest they originate from, can run anywhere from a couple hundred dollars to upwards of one thousand dollars. Barrels can be used almost indefinitely if taken care of but after just three or four years no longer impart any oak flavors into the wine.  For winemakers wanting to impart an oak influence in their wine, new barrels must be purchased often.

Different types of grapes are more expensive and demand higher prices when bought or sold. This can be due to the difficulty of growing that particular variety as some grapes pose more challenges in the vineyard than others. Some grapes varieties yield less grapes per acre than other varieties and certain farming techniques such as dry farming purposely produces less grapes with more concentrated flavors. Dry farmed fruit is of higher quality but there is less of it for the same land usage so this can up the price of a bottle of wine. Sometimes it is due more to the popularity of that particular grape at that particular time. Yes, even in the wine industry there are trends and grapes that are in and those that have fallen out of fashion.

Wines coming from world class wine regions that have proven track records for producing the highest quality wine will always demand more money than wine from those areas that have yet to gain their very deserved reputation or those regions that just do not have the proper climate and soil it takes to grow world class fruit. Wines that win certain awards from well respected judges can often sell for more money. A great year makes a huge difference too. Grapes that were grown during a year in areas experiencing excellent grape growing weather conditions produce better tasting wine and fetch a higher price. So the year or vintage can make a significant difference in price between one wine and another. Even from the same winery producing the same wine. Supply and demand and the health of the economy will have an influence on wine prices too. Just like any other commodity these two factors play a role in what the market will bear.

And then of course there is another factor to the price of wine. One that is usually not discussed or advertised. I guess the best way to describe it in one word is ego. There are those in the wine industry who are what some of us refer to as “very proud of their wines” and consumers out there who are very proud to own these wines. This is a relationship that produces high prices and big attitudes.

How lucky we are to live here in the Umpqua Valley where wine makers just don't play that game and neither do the savvy wine enthusiast who appreciate the quality and proper pricing of our local wines. Our vintners have it all, great climate, quality fruit, and take their time. Everything that is expensive in the world of wine yet they manage to produce world class wines of tremendous value.