I wrote a few days ago about our denomination’s new sparkling albariño, and whilst there will be a few bottles on the market before Christmas, it’s very unlikely to be appearing in your local supermarket any time soon (if at all). Not because it isn’t a good product, but more because it is likely to be very much a niche product – a curiosity that will never be produced in any great volume.

In stark contrast to this small, limited production it is quite clear that there must be some sparkling wines appearing on the Christmas market which are produced in some quite serious volumes. The reason behind this sweeping statement is actually quite simple…… their price! Picking out recent examples from the UK market (sold by a supermarket which shall remain nameless), they are promoting sparkling wines from as little as £3.29 a bottle, and a handful of others all under £5.00. When you consider that all sparkling wines sold in the UK attracts a higher level of excise duty, £2.43 a bottle to be precise, you might begin to understand where I am going with this. The Value Added Tax on a £5.00 bottle is £0.83, which added to the duty, makes £3.26, leaving only £1.74 for the wine itself (on the £3.29 bottle the residue after tax is only £0.31). Now, when I use the word ‘wine’ this does not actually mean just the liquid in the bottle, the £1.74 (or £0.31) has to account for the liquid, the bottle, the cork, the label, the capsule, the carton, the shipping, the warehousing, the distribution, and oh! I nearly forgot, perhaps a bit of profit for the producer and the retailer. These numbers do not really add up for the £5.00 bottle, and therefore even less so for the £3.29 bottle. The latter must be what is known as a “loss leader” – a product perhaps sold at a loss merely to attract custom and get people into the store on the basis that they will buy other, more profitable items. Also known as “cross town deal” – a deal so good that customers will go out of their way, or possibly make a special journey just to take advantage of it.

I’m very sorry to admit that personally I am never tempted by these offers, especially when it comes to Champagne or sparkling wine. I’m a great believer in the old adage ‘you get what you pay for’, and if an offer is too good to be true, then there really must be a reason.

I wrote a few days ago about our denomination’s new sparkling albariño, and whilst there will be a few bottles on the market before Christmas, it’s very unlikely to be appearing in your local supermarket any time soon (if at all). Not because it isn’t a good product, but more because it is likely to be very much a niche product – a curiosity that will never be produced in any great volume.

In stark contrast to this small, limited production it is quite clear that there must be some sparkling wines appearing on the Christmas market which are produced in some quite serious volumes. The reason behind this sweeping statement is actually quite simple…… their price! Picking out recent examples from the UK market (sold by a supermarket which shall remain nameless), they are promoting sparkling wines from as little as £3.29 a bottle, and a handful of others all under £5.00. When you consider that all sparkling wines sold in the UK attracts a higher level of excise duty, £2.43 a bottle to be precise, you might begin to understand where I am going with this. The Value Added Tax on a £5.00 bottle is £0.83, which added to the duty, makes £3.26, leaving only £1.74 for the wine itself (on the £3.29 bottle the residue after tax is only £0.31). Now, when I use the word ‘wine’ this does not actually mean just the liquid in the bottle, the £1.74 (or £0.31) has to account for the liquid, the bottle, the cork, the label, the capsule, the carton, the shipping, the warehousing, the distribution, and oh! I nearly forgot, perhaps a bit of profit for the producer and the retailer. These numbers do not really add up for the £5.00 bottle, and therefore even less so for the £3.29 bottle. The latter must be what is known as a “loss leader” – a product perhaps sold at a loss merely to attract custom and get people into the store on the basis that they will buy other, more profitable items. Also known as “cross town deal” – a deal so good that customers will go out of their way, or possibly make a special journey just to take advantage of it.

I’m very sorry to admit that personally I am never tempted by these offers, especially when it comes to Champagne or sparkling wine. I’m a great believer in the old adage ‘you get what you pay for’, and if an offer is too good to be true, then there really must be a reason.