The wine being made by the Wine Co-op will be utilizing the same quality grapes as are used in the “premium wine” product category of the Napa Valley. Premium wines are sold at prices that range from $50 per bottle to well over $100 per bottle. These are the wines that are often featured in Wine Spectator and Robert Parker’s Wine Advocate.
For wines in the premium price category, the actual production costs of the wine only amount to between 10% to 15% of the retail price of a bottle. The balance of the price represents marketing, overheads, wholesale and retail mark-ups which have nothing to do with the actual costs of making the wine. This means that for a $100 bottle of premium Napa Cabernet Sauvignon, the actual direct winemaking costs only amount to about $13.
The Wine Co-op will be using the same quality grapes and winemaker as the premium Napa wines. However, these wines will be made available to Members of the Wine Co-op at a price equivalent to the actual direct winemaking costs. This means that a wine that is identical to a $100 bottle of Napa wine will be made available to Members for only $13.