Pricing California Wines

[Craig Camp]

If you've ever wondered why the price of California wines can vary from $5 to $325 a bottle, you're in good company. Esteemed researchers at the University of California, Davis, have done an exhaustive study to explain the price differences.

[Mark Sommelier]

Interesting article, Craig. One of the factors that the researchers seem to have left out is: Ego. Winemaker/Vineyard owner's egos go a long way when pricing the wine comes up. The old formula from UC Davis says that to find the price of the bottle, divide the price per ton by 100. This actually seems to work in the $15-$40 range. After that, are people really paying $8,000-$12,000 a ton for grapes? I don't think so. That is the ego part. 2 years ago a salesman brought me a first release of a merlot from Napa Valley. The wine cost $100 a bottle wholesale ($150 retail, $225 restaurant price). First release. No track record. When I asked why it cost so much, the answer was ....blah blah blah French winemaker......blah blah blah Jess Jackson thinks its worth that.....blah blah blah. The same wine, 3 vintages later, is on the market now for $60 wholesale, despite good ratings from Parker. Go figure.