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What really makes wine expensive or cheap, here are 5 factors that decide

An AI generated image of a couple having wine
An AI generated image of a couple having wine

Wine lovers, much like sports enthusiasts, are incredibly particular about their choices.

Whether one prefers a dry red or a light and sweet white, the debate around wine preferences is as passionate as a football fan defending their favourite team.

But beyond personal taste, what truly determines the price of wine?

During the second edition of Gambero Rosso, an Italian Wine Roadshow attended by the Pulse Kenya team, wine lovers shared their insights on why some bottles fetch higher prices than others, and why dry wine is often considered superior to sweet wine.

The art of winemaking: A love story in every bottle

The price of wine is often influenced by the craftsmanship involved in its production. From the selection of grapes to the aging process, every step requires precision and expertise. One wine enthusiast passionately explained:

Wine is like a love story. There’s aging, there’s the grapes, there’s the harvesting. It’s very delicate.

Each bottle tells a story, and the effort put into winemaking is directly reflected in the price. A wine that has been aged for 24 months in high-quality barrels will naturally cost more than one that has been bottled after just a few months.

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The role of grapes and vineyards

The type of grapes used and where they are grown play a crucial role in determining the cost of wine. Different grape varieties produce different flavours, and some are more difficult to cultivate than others.

Additionally, the region where the grapes are grown significantly affects pricing.

“First of all, the grapes, the area that the vineyards are in. If I was going to generalise, how much care goes into it, how much time, what kind of grapes, what kind of conditions,” one wine connoisseur pointed out.

Vineyards in renowned wine-producing regions such as Bordeaux, Napa Valley, or Tuscany yield wines that command higher prices due to their ideal climate, soil composition, and winemaking traditions.

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Aging and maturation: The influence of time

Aging is another major factor that affects the price of wine. Wines that have been matured in oak barrels for years develop deeper and more complex flavours, making them highly sought after.

There’s a love story that you meet, and it’s one month. And there’s a love story that you meet, it’s 24 months.

Essentially, the longer the aging process, the more refined the wine becomes. This extended maturation process also increases production costs, which are then passed on to consumers.

Importation and taxation

Imported wines tend to be more expensive due to added costs such as shipping fees and taxes. Different countries have varying import duties on alcoholic beverages, and these levies impact the retail price.

“If it’s an export, sorry, an import, then there are going to be certain taxes that are put on it, because alcohol is taxed everywhere, right?” another enthusiast pointed out.

These taxes, coupled with logistics costs, make imported wines pricier compared to locally produced alternatives. However, many wine lovers still prefer imported wines due to their unique characteristics and heritage.

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Entry-level vs. premium wines

Not all wines are created equal. The market is segmented into different price points, catering to a wide range of consumers.

There are affordable entry-level wines for casual drinkers, mid-range wines for enthusiasts, and premium wines for connoisseurs willing to spend on quality.

You have entry-point wines, and those will be less expensive than, say, classic wines.

Premium wines often come from highly respected wineries, use superior grapes, and undergo longer aging processes, all of which contribute to their higher price tags.

The sweet vs. dry wine debate

A recurring topic among wine enthusiasts is the debate between sweet and dry wines. While sweet wines are popular among new wine drinkers due to their approachable taste, many seasoned wine lovers argue that dry wines are superior.

“And one thing I need to tell Kenyans, stop drinking sweet wines. Come on, guys. Sweet wine does not mean that it is just good wine.”

The preference for dry wine is often linked to its complexity, the quality of grapes used, and the winemaking techniques involved. Dry wines tend to have a more refined structure and are considered more suitable for food pairings.

The price of wine is determined by multiple factors, including grape quality, vineyard location, aging process, taxation, and market positioning.

Whether you prefer an affordable entry-level bottle or a luxurious vintage, understanding these factors helps in appreciating the craftsmanship behind each sip.

So the next time you raise a glass, remember, every bottle has a story – and the price you pay reflects the journey it has taken from vineyard to table.

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