Under the Influence of Money

Classic economics tells us that the price of a product is a function of the raw materials and labour costs employed to produce it. At least this is the gist of a vague memory from a smattering of first year economic courses! Certainly, many wine drinkers will argue that it can’t possibly cost more than R50 to produce a bottle of wine, how on earth can anyone justify the exorbitant prices?

The one thing all iconic wines have in common is a sense of place. With these wines one is not only sampling an alcoholic beverage or varietal characteristic. You are literally tasting a place; the gravel beds of Pauillac, the limestone of Chablis, the slate of the Mosel. This is the difference between wine made by recipe and wine expressing terroir. In the most expensive wine region in the world; Burgundy, you literally cannot buy land, it is beyond price. This has a lot to do with the Napoleonic era land ownership laws but more to do with the single vineyards, sometimes the size of a living room, producing wines of a signature character.

Further south the wines of Bordeaux are also a function of terroir. But, the Bordelaise have another arrow in their quiver, that of marketing savvy. Even the prestigious first growths, renowned for their rarity and high price, actually produce hundreds of thousands of bottles. They let these trickle onto the market like a desert trecker squeezing the last drops from a water bottle. If the wines were to flood the market, this would have a similar effect of De Beers selling off all their diamond reserves, 5 Euro First Growths!

At the end of the day what you are prepared to pay for something is a function of what you value. Individuals who love nothing better than the feeling of driving powerful vehicle will prioritise this purchase in their lives. A wine anorak on the other hand might opt for a case of Chateau Cheval Blanc over driving a car at all!

The bottom line is; are all expensive wines necessarily good? One needs to look at the brand in these instances. Brand names become so because of consistency of quality and quality is led by terroir and investing in wine making practices. In other words one can’t usually go wrong with a top brand, although you will pay a premium for them. As a wine consumer these are the anchors from which to venture outwards into a variety of different combinations. Perhaps an unknown Estate from a renowned region, or famous wine maker in a new, lesser know region. This is where the world of wine gets especially interesting and new icons are discovered. Happy hunting!