Cost of Wine Factors

LDV Wines   /   Sep 30th, 2019

Cost factors in setting the price of LDV wine are many. As an estate winery, LDV controls planting grapes to wine delivery. When setting the price, the basic costs to make the wine are considered.
  1. Farming is expensive. Some costs include labor, nutrients, consultants, water, equipment, and insurance.
  2. Winemaking costs include labor and equipment.
  3. Cost of aging wine. Stainless steel is very expensive (small tanks cost $2,000-$3,000) and barrels (range $700-$1400). The aging process involves maintaining 58-degree year-round temperature and staffing to watch over the wine for 2-3 years.
  4. Packaging costs include labels, glass, corks, etc. LDV has $2.00 per bottle just in packaging.
  5. Additional costs include transportation, marketing, and maintaining a tasting room.