COST ITEMS IN A BOTTLE OF WINE WITH A SHELF PRICE OF 300 TL

May 14, 2024

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FIRST PART VAT: 50₺ SPECIAL CONSUMPTION TAX: 28,50₺ OFFICIAL STAMP: 2,50₺ MARKET DISCOUNT: 71,50₺SUM OF TAXES & DISCOUNT: 152,50₺

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SECOND PARTAMOUNT OF GRAPES TO PRODUCE A BOTTLE OF WINE (0,75 L) : 1,25 KG COST OF CABERNET SAUVIGNON PER KILO IN 2023: 45₺ TOTAL COST OF GRAPES: 56,25₺

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THIRD PART BOTTLE: 25₺ CORK: 10₺ HOOD: 3₺ LABEL (2 PARTS): 10₺ WINE CASE OF 6 BOTTLES (24/6): 4₺ LOGISTICS: 4₺ TOTAL: 56₺

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FOURTH PART LABOUR, ENERGY, PRODUCTION COSTS AND PROFIT OF THE WINERY 35,25₺

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We all know that wine prices have hurt wine lovers badly, especially in the last two years. In fact, professional friends in the market share with us that due to this change, the tendency towards alternative, rather alcoholic drinks with higher alcohol levels instead of wine, has increased. In this study, we have compiled for you the cost items of a 75 cl bottle of wine with a shelf price of 300 ₺, in May 2024 figures. We based this review on the following criteria:

The annual production amount of the assumed manufacturer is 10-50 thousand bottles. He buys the materials he uses in wine production, such as bottles and corks, at wholesale prices.
He made the wine from Cabernet Sauvignon grapes harvested in 2023.
The winery sells the wines through the chain market. The shelf price of the bottle is 300₺.
We assumed that there were no economic problems in Turkey. Inflation is 0, there is no interest involved in loan usage. But of course these are dreams. The expected price per kilo of grapes, which we accepted as 45₺ in 2023, is in the range of 70-90₺ this year. Loan costs 5% per month. Even TUİK, State Statistical Institute, whose reliability is questionable, declares inflation as 70% today. If we included these values in our work, this situation would turn into even more of a crying wall, so we did not.

Now let's take a closer look at the four sections into which the bottle is divided.

First part:

20% VAT (Value Added Tax on alcoholic beverages in Turkey): 50₺

Fixed Special Consumption Tax (OTV) per 75 cl Bottle: 28.50₺

Official Stamp (Bandrol) Cost per Bottle: 2,5₺

Market Discount Share: 71.50 TL (We calculated the discount based on the base price, excluding the VAT amount. The discount rate that the markets receive from the manufacturer is between 35-50%, we use 40%.)

Total Amount of Taxes and Market Discount: 152,50 ₺

Second part:

The average amount of grapes professional winemakers use to produce one bottle (0.75 liters) of wine is considered to be between 1 and 1.5 kilograms. In our calculation, 1 bottle of wine is obtained from 1.25 kg of grapes. We assumed that the grapes used in the wine offered for sale in May 2024, were harvested in 2023. With last year's prices, 1 kilogram of Cabernet Sauvignon grapes was sold for between 40₺ and 50₺. We accepted 45₺. The total cost of 1.25 kilograms of grapes purchased from the vineyard was 56.25₺.

Grape Share: 56.25 ₺

Third part:

The third part of the bottle contains the bottling and shipping costs of the wine. For these costs, we based on the wholesale unit purchasing costs of wholesale manufacturers, excluding VAT:

Bottle: 25₺ (average of prices between 10₺ and 35₺.)

Mushroom: 10₺ (average of prices between 2.5₺ and 20₺.)

Hood: 3₺ (average of prices between 2-5₺.)

Label (2 pieces): 10₺ (average of prices ranging from 4₺ to 24₺.)

Double box with separator for six bottles (24₺/6): 4₺ (Cost per bottle in a case of six bottles)

Transportation Cost: 4₺ (A trip from the Aegean region to Istanbul with a truck is 30,000₺ in total)

Total Bottling and Transportation Expenses: 56₺

Total amounts in the first, second and third sections: 263.50 ₺

Fourth Part:

The fourth section at the bottom of the bottle contains the amount left to the wine producer from this sale. This amount includes the depreciation of the facility, the wage expenses of the personnel employed, the sum of expenses such as energy, water and yeast used in production, and the producer's profit, if any.

Producer's Leftover from a Bottle of Wine: 35,25₺

After deducting the market share, taxes, production and transportation expenses of a bottle of wine priced at 300₺, the producer's remaining amount is 35,25₺.

This amount is not the profit of the wine producer. The depreciation expense of the investment made for the establishment of the production facility over the years, the salaries and social obligations of all employees working within the company, energy expenses, water expenses, production expenses other than raw materials, and expenses of marketing and sales activities are covered from this share. If there is any remaining profit after all these expenses, corporate or income tax is paid on this profit.

We wrote down the article entirely based on numbers. We compiled the unit values we found from the sources we could access. There may be some deviations, and of course, we are responsible for these deviations.

We leave it to you, the reader, to interpret the cost anatomy above.