9/23/2023 0 Comments 1999 opus one value![]() ![]() Hobbs said his margin is around 40 percent on his most expensive wines, meaning that the Beckstoffer cost about $48 to produce. For wines in the $7 to $10 range, the margin is far less, because the makers make money on volume. ![]() A $100 wine that cost $50 when it left its maker may have cost as little as $25 to produce. Hobbs's 1999 Beckstoffer left his winery at $67.50. That means a $100 wine was $50 when it left the winery and had $50 tagged on by the distributor and the retailer. To begin with, the retail price on the shelf is generally twice what the winery sold the wine for. They'd say it's a great bottle of $1 wine.''īut there is much more to the cost of a bottle than the wine inside. ''If I made the best wine in the world and charged $1 for it,'' he said, ''no one would believe it was the best. Price also plays into the perception of value, said Vic Motto, a senior partner at Motto Kryla Fisher, a wine industry consulting company in St. ''It's finding the right point in the market where you're priced appropriately in relation to other wines that are similar in stature and style and level, where both merchants and consumers will be eager to buy the wine.'' ''It's definitely more art than science,'' said Mannie Berk, the owner of the Rare Wine Company, an importer in Sonoma, Calif. ![]() Why does one bottle of fermented grape juice cost $135, and another just $15? Americans consumed 14.9 million cases of California cabernet in 2001, according to a study by Impact, a trade publication that tracks the wine industry, and customers in a wine store, faced with walls of bottles that range in price from the low end to the high, confront the question every time they shop. Hobbs thought long and hard and decided: $135. Hobbs to determine a retail price that would let him pay off some debts and draw the attention of serious wine drinkers, yet be low enough that he could actually sell the wine, not just this year but for vintages to come. He had investments to pay off and a reputation to build on the wine, but he was also facing a market that had softened tremendously. LAST year, when Paul Hobbs, a California winemaker, was about to release his 1999 Beckstoffer cabernet sauvignon, lots of things were going through his mind. ![]()
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