Another way of asking this is: what is the average cost of good sold for a winery?
Here I am talking about small, premium wineries, selling less than 10,000 cases a year direct to consumers at premium price points.
What costs are included in cost of goods sold?
The raw materials that go into a bottle of wine:
- Additives such as yeast
- Packaging costs, such as bottles, labels, corks, capsules
The costs of turning those raw materials into a finished product
- Production labor
- Cellar costs, such as production supplies, production facilities, depreciation on production equipment and barrels
- Custom services, such as bottling or filtering services
What is the average cost of goods sold for a small, premium winery?
Most wineries don't invest in real cost accounting, so it's hard to pin down the number. Depending on a lot of factors, what I am seeing is a cost of goods of about 30%, or gross margins of about 70%.