As a precursor to a tasting of similar wines at different price points (as prompted by a follower’s comment) I list below a breakdown of retail price points and their duty and VAT elements – for still wine, 75 cls.
Retail Price VAT Duty VAT+Duty as % of RP
5.00 0.83 2.00 57%
6.00 1.00 2.00 50%
8.00 1.33 2.00 42%
10.00 1.67 2.00 37%
12.00 2.00 2.00 33%
As you pay more for your wine, the less the government take as a percentage of the total cost; the point has been made many times. This does not, however, always mean better quality wines at higher prices as there are many in the chain of supply who take their profit margins for growing, making, distributing, marketing etc. It does mean, however, that lower price points mean less is available for all those elements. One outcome may be that economies of large scale production become important and the quality of the wine may suffer or at least become one-dimensional. Some of our forthcoming tastings will be aimed at commenting on this factor.