Wine 101

Question 1

DTC

Answer 1

Direct to Consumer — wine is sold from winery directly to consumer

Question 2

FOB

Answer 2

Free on board. Winery selling to a state importer or distributor

Question 3

Three -tier distribution system

Answer 3

1) Producer (importer, winery) —> 2) wholesale distributor —3) On/off premise

Question 4

How wine prices work

Answer 4

Winery sell distributor at $30, it sells to retailer with 40-50% markup —$44, on promise sells x2-4 times more , $132. If buying by the glass, glass will cost as much as its wholesale cost.

Question 5

Pricing of wine

Answer 5

1. Winery sells to customer or distributor with at FOB price (free on board). $30
2. Wholesale price = FOb = tax + distributor markup (30-40%) $44
3. Retailers buys at wholesale price and add (50%-60%) $60
4. off premise restaurant buy at wholesale price and sells at 200-400% markup = 44x3=$132
5. Glass of wine is priced at or higher than wholesale price

Question 6

Wine storage & Service

Answer 6

• Store in cellars at 55F(13C) — 50-70% humidity

Serve white wine:
- sparking: 43-50 F (6-10C)
- light to medium body: 45-50F
- medium to full body, oak bodied: 50-55F (10-13C)

Red medium to full body room temp: 55-64F (13-18C)

Sweet wine: 43-45F

Question 7

Enemies of wine

Answer 7

Air contact
Daylight
Odor
Vibration
Extreme Heat or cold
Change of temperature e