Cheers! Your wine is 270% more expensive
An investigation by Calcalist's supplement follows the journey of a cheap French wine bottle from a winery in France to the shelf in Israel, revealing that the price jumps by 270% to reach 50-70 shekels. The investigation exposes the cost chain: transportation, regulation, high customs, importer and retailer margins, and relabeling as a luxury wine.
An investigation by Calcalist's supplement follows the journey of a cheap French wine bottle, La Vieille Ferme, from a winery in France to the shelf in Israel. The price in France is about 5.5 euros (about 19 shekels), but in Israel it reaches 50-70 shekels – a jump of 270%. The investigation details the cost chain: exit from the winery (about 10.4 shekels per bottle), land and sea transportation (about 3.36 shekels), refrigerated containers (up to 1.2 shekels), local logistics and licensing fees (about 4.15 shekels), high customs (about 3.9 shekels minimum per bottle, about 38% of the exit price), importer margin (about 35%) and retailer margin (about 30%), and VAT. The investigation points to cumbersome regulation, protective tariffs, and lack of consumer awareness as factors for the high price. The wine, perceived in France as a folk wine, is marketed in Israel as an almost luxury wine.