When wine is too cheap | New Brief #270

What is the right price for a wine? It depends on the perspective from which you look at it. For the consumer, it is a price that makes them happy. For the producer, it is also a price that makes them happy and, above all, that gives them a reasonable income in the business. As a consumer, you often want the lowest price possible, but that is not always a good idea. What you can be sure of, however, is that there is no “fair” price based on the cost of production.

As I write this, I am sitting in the shade of a tree in a garden in Stellenbosch, the last day of this year’s wine tour in South Africa, and then “the right price” takes on a slightly different meaning. We have had ten days of fantastic experiences, breathtakingly beautiful landscapes, delicious lunches and – not least – many good wines. You get a slightly different perspective after so many vineyard visits with world-class wines.

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(If you have Swedish friends, please know that we have a separate,
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When one is curious and looks at the price list of wines at the vineyards we have visited, it almost makes you rub your eyes and look again. We have tried outstanding chenin blanc, one of South Africa’s flagship grapes, stylish cabernet and syrah, lush but fresh pinotage (if you still think of “bakelite” and “smoke”, you are welcome here so you can change your mind). And much more.

But the prices are really eyebrow-raising.

Can it really be that cheap? International top-class wines rarely cost more than 20 euros (dollars), and there are plenty of really good wines around 10-15 euros (200-300 rand).

That’s fantastic, you think.

But maybe not…

One of the big problems in South Africa’s wine industry is profitability. Wine producers have difficulty getting paid enough for their wines. Today, the acreage is decreasing and wineries are closing down. Sometimes we in richer countries worry about how little those who work in the vineyards are paid and how miserable their homes look. There are even TV programs about how scandalous this is. But how are wine producers supposed to pay decent wages to those who work in the fields if we wine consumers don’t pay decent prices for the wines, prices that correspond to the quality of what they do and that provide a reasonable income?

Of course, it has to do with sustainability. Sustainability is about packaging (which is unfortunately almost the only thing Systembolaget, the very influential Swedish monopoly, cares about when it comes to sustainability), the environment and biodiversity. But it is also about economic and social sustainability. If wine producers don’t make enough money, they are forced to close down, jobs disappear, their delicious wines no longer exist.

Now, this is not something that is unique to South Africa. South Africa just happens to illustrate this so dramatically after this wonderful wine tour. There are many wine countries or wine regions that suffer from the same thing. Many struggle with profitability. They are not famous enough to get paid reasonably for their wines. Languedoc, Loire, Soave, Bierzo, Alentejo, Mendoza, Chile… A few producers have gained their own notoriety but many others – just as talented – struggle.

The “big names” – famous wine regions, famous producers – are doing well. They are often the ones who are well-known and have resources for international marketing, the ones who find their way into, for example, the monopoly in Sweden or the complicated distribution channels in the USA. Who are written up in advertising-financed wine magazines and who can effectively massage and oil the wheels in their relationships with large buyers in monopolies and grocery chains.

So what can we ordinary consumers do (if, at all, we care)?

There is no easy solution. But we can do a little anyway! We can contribute.

Broaden your perspective and don’t just drink the “big names” that are written about in magazines given high ratings and wine-scores and by “influencers” or certain websites (which are financed in the same way), and who are the ones that appear again and again on the monopoly shelves.

Be curious and try something different.

Sometimes take a chance on something unknown.

Look among the smaller producers.

And be prepared to pay a little more. Even if it is not an internationally famous name or brand on the label. It will still be cheaper (and better?) than for wines where half the price goes to advertising and marketing.

Travel

Now it’s time to plan your trip for this year and next.

In the fall/autumn we do Bordeaux, Burgundy and Champagne.

We do not have any places left on the winter wine tours, but soon we will publish the entire autumn travel program for 2026, as well as the winter of 2027. You will get a sneak peek below.

More info on our wine tours here. “World’s Top Wine Tours“. Tours with the people who know wine and who have an unrivalled experience of wine and tours.

Travel in wine regions with someone you trust.

Enjoy the Brief!

Britt & Per

Wine editors to the national encyclopedia, Forbes.com contributors, award-winning wine book authors, wine tour advisors to the UN and national wine organisations, wine judges … and, above all, passionate wine travellers.

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