The price of wine

Personal and family economy is an important factor in the decision making process when it comes to buying wine. In his book El Vino, André Dominé In principle, more and more people can afford to buy an exquisite wine and discover what lies behind its quality and character," he says. This author also assures that times have changed in the world and that before wine was only within the reach of the wealthiest classes, today wine has started a process of democratization. The question is whether this also happens in Mexico.

 

What is value for money?

The price of wine does not necessarily go hand in hand with quality. A wine is more expensive if it had a more careful winemaking process and better quality grapes. Taste is subjective, quality is objective. However, at the time of purchase it is important to keep in mind that it is not necessarily necessary to spend a fortune to buy a good wine. According to Karen McNeilthe author of The Wine Bible and professor at the Napa Campus of the Culinary Institute of America, if you are going to a dinner party at a friend's house and there will be lasagna, a $60 wine is not only unnecessary but even out of place. Generally, people who don't know about wine are guided by price considering that the more expensive the better... Wine connoisseurs make the choice according to the price-quality relationship of what is inside the bottle. 

In relation to price and quality, the increase in wine consumption in Mexico is supported by the middle and upper classes, the Spanish commercial office in Mexico, in a research report, published that especially young adults with purchasing power, being the social class that dares more to try new drinks and varieties... want to incorporate new alcoholic products and perceive wine as the most versatile option.

Price and type of wine

The Mexican market is increasingly looking for better wines, i.e., those that wineries consider to be top of the range. Although the majority of red wine sales in recent years have been concentrated in bottles priced between 91 and 150 Mexican pesos, there is a more informed consumer behavior that can pay more but is looking for higher quality wine.

White wines would be the exception to the last point, as 49% of their liters sold were below 90 pesos. On the other hand, in the category of other sparkling wines, bottles valued at less than 166 pesos increased sales the most. 

These data lead us to consider that the most sought after and purchased wine is red wine. Whites and sparkling wines have a specific niche of consumers who seek and prefer them. The categories of rosé wine and fortified wine still have an important positioning challenge in the Mexican market.

 

Taxes on wine

In relation to price, it is vital to consider indirect costs and taxes such as the Special Tax on Products and Services (STPS), which together with VAT account for a little more than 40% of the retail price. The indirect costs absorbed by the consumer of imported wines are transportation, taxes and customs clearance, as well as labeling and storage. Wine importers state that obtaining the marbels is slow, which delays importation and sometimes makes it necessary to resort to fiscal storage, situations that increase the cost of wine.

In recent decades, the tastes of Mexican consumers have changed and they are now more demanding. 

There is a direct relationship between consumption patterns and distribution that results in a diversity of prices according to the place of purchase. In general, lower priced wines are concentrated in supermarkets and discount stores, while high-end wines can be found in specialty stores and in restaurants, hotels, bars and other consumption centers. Generally speaking, it could be said that wine consumers who order a bottle in a restaurant are willing to pay the price offered.

Sommelier José Luis Umaña Saldaña