Cost versus Price of Napa Valley Cabernet

Cost versus Price of Napa Valley Cabernet

You always here the argument that Napa Valley cabernets are getting to expensive. They are made for the wealthy and Top 1%. It is true. However, do you know the formula for pricing? The price of a bottle is based on the cost of a ton of grapes. If you buy cabernet fruit from To Kalo will cost at least $50,000 per ton. If you divide that by 100, the price of a bottle is $500.

Currently, the average price for the entire Napa Valley is $7,500 per ton. This makes the average price at $75. If you take the whole state of California, the average price per to is $1552. Thus, making the average price for a bottle $16. It is supply and demand. Yes, the top vineyards do sell for a lot of money. However, they are usually productions under 5000 cases or less. Some of the wines that I like are less than 1000 cases.

It is unfortunate for us that they are outside of our budgets, but you need to move on where you can get more value for your money. Eventually, these same economic conditions will be coming to other areas of California. Get while you can.