Dear Sommelier - What defines the price difference in wine? (Part 1)

Good morning. Today marks the fourth week of our Australia series. After spending about a month here, we have reached the final day.

Last week, I introduced a side-by-side comparison of "Pete’s Pure" Chardonnay (¥1,188) and "Yangarra Estate Vineyard" Blanc (¥4,400). (For details, see Ohayo Biwako Vol. 153.)

This week, I want to delve into the factors behind why there is about a 3.7-fold price difference. Where does such a significant price gap come from, even between two Australian white wines?

First, let’s organize the differences

A price difference means that the elements related to the wine are different. Before digging deeper, I decided to list the obvious differences between each.

===

・Number of grape varieties used: 1 vs 5

・Grape varieties: Chardonnay vs Grenache Blanc, Roussanne, Picpoul, Clairette, Bourboulenc

・Winery: Pete’s Pure vs Yangarra Estate Vineyard

・Vintage: 2024 vs 2021

・Place of purchase: Convenience store vs Enoteca

===

With these in mind, let’s dig deeper.

Number of grape varieties used - How many varieties?

Which one do you think would be more expensive?

My impression is that blends would be more expensive, due to the cost of experimenting with the ratios of multiple varieties, as well as the simple labor and time costs of harvesting them.

What is the reality?

The conclusion is that it is case-by-case. While using multiple varieties generally increases costs and thus tends to raise the price, the final price is determined by many factors such as quality, market demand, and brand power.

As Okada-kun wrote in his article yesterday, wine "expresses the land." Many producers value the uniqueness of "what could only be expressed at that time, in that place," such as the vineyard where the grapes grew, the climate of that year, and region-specific brewing techniques. An importer I spoke to recently mentioned that the more that uniqueness can be expressed, the higher the value becomes.

Also, just because only one grape variety is listed doesn't necessarily mean the grapes came from a single vineyard. As a beginner, I was surprised to learn that.
If a variety like "Chardonnay" is sourced from multiple vineyards, it doesn't reflect the terroir of a single site, so the value may be lower. Conversely, single-vineyard wines are often more valuable because they can express their terroir more easily.

On the other hand, picking from multiple vineyards produces a larger yield than harvesting from just one, allowing for mass production and providing the benefit of risk diversification.

I can see why the fragility of the idea that "the same thing will never be created again" is what attracts more wine fans. Moreover, with the recent effects of global warming, flavors are becoming more prone to change. It's no wonder one would want to compare them year after year.

Now, where do these grapes come from?

Origin of the grapes - Where are you from?

First, "Pete’s Pure." It seems highly likely that this Chardonnay is harvested from multiple vineyards, not just one.

Although I haven't found a definitive statement, I have two reasons for this.

First, if they were using a single vineyard, they would likely highlight that as a selling point. However, that information was not found on the Pete’s Pure website or other retail sites.

The second reason is that Pete's Pure grows grapes on a vast scale. They cultivate grapes on a massive 803 hectares of land. Even in prime Australian wine regions, the average vineyard size is about 69.7 hectares, so their scale is quite vast. This suggests operations across multiple vineyards rather than a single site.

On the other hand, "Yangarra Estate Vineyard" uses grapes harvested from a single vineyard, even though they use different grape varieties. This aligns with the "Yangarra" philosophy.

The Yangarra philosophy is to produce wines from our single-vineyard estate, that reflect an authentic sense of place.

- Source:https://www.yangarra.com/about-yangarra

The idea of "different grape varieties growing in a single vineyard" didn't really click at first, but it makes sense that if the climate and soil are right, various grapes can grow there. Just like how many different plants bloom along a riverbank, it turns out that historically, many varieties grew in the same field.

In short, whether the grapes come from a single vineyard or multiple vineyards likely plays a role in the price difference.

Value of the grape itself - Value of the grape itself

Are some grape varieties inherently "high-end" and others "low-end"? I looked into it, and it seems that the concept of high or low-end doesn't exist for the grapes themselves.

"Wait, but isn't Shine Muscat high-end?" Some of you might think that.

It is true that Shine Muscat is a prime example of a "high-end grape." This isn't just because the variety itself is expensive, but because of (1) its sweetness and ease of eating that everyone loves, (2) the convenience of being able to eat the skin, (3) its beautiful appearance, (4) the difficulty and labor of cultivation, and (5) above all, high demand... these factors combine to create the image of it being "high-end."

Of course, each grape has internal factors, but value is created in combination with external factors. It seems obvious, but it’s more convincing when you look at it again.

I’ve digressed a bit, but the same can be said for these wines. Chardonnay and the blend of Grenache Blanc, Roussanne, Picpoul, Clairette, and Bourboulenc have different characteristics, and their price and quality cannot be simply categorized as "high-end" or "low-end."

Chardonnay is a variety that is relatively easy to grow in almost any climate and is loved around the world. Because production is relatively easy, it is used in a wide range of price points.

On the other hand, the five grapes (Grenache Blanc, Roussanne, Picpoul, Clairette, Bourboulenc) are "specialists," each playing a different role.

For example, Roussanne brings complexity and aging potential, Picpoul adds refreshing acidity, and Bourboulenc contributes a sense of minerality to the wine.

Looking at it this way, Chardonnay is like a solo artist who highlights the charm of one singer, while the five-variety wine is like a jazz band, an "ensemble that makes the most of individual personalities." Both are attractive, but it’s easy to imagine that a band with multiple musicians would cost more.

In summary, the causes of the price difference seem to be intertwined with two factors:

・Using multiple grape varieties

・Growing them in a single vineyard

However, there are still other elements that create price differences in wine. Factors such as differences in vintage (harvest year) and distribution costs based on where they were purchased cannot be overlooked.

I will delve into these next time 🔍 And finally, I plan to dive into the world of Austrian wine 🇦🇹 See you next week!