Why Californian wine is so expensive in the UK
It’s easy to forget how new California is to making wine. Whilst in Napa Valley last month, I had the good fortune of meeting John Shafer – founder of the eponymous estate situated in the Stags Leap district. He is one of the founding fathers of Californian wine, and though hardly a spring chicken, is still as sharp as a knife. Their first vintage was the 1978. To give it some perspective, Barone Ricasoli in Chianti, for example, has been making wine since 1141.
One charge that is often levelled against Californian wine in the UK is that it is so expensive. John brought it up before I had the chance to, and I had to admit that it is still seen as an issue over here. It is possible to buy good value Californian wines, but they are relatively few and far between, particularly at the £8 – £20 mark, compared to most other famous wine regions such as the Rhône, the Mosel, Chianti and Rioja.
That wineries are relatively new in California, compared to many of the great wine regions of Europe, is one reason. Being a relatively young winemaking region, many wineries are still being paid for, and this investment is still being recouped by factoring it in to the price of the wine. The hardware required to set up a winery is very costly, and there is a large initial payout required before you can even start making any wine. Added to this, particularly in Napa, since there have been so many success stories of cult wineries charging huge sums per bottle, land is extremely expensive to buy.
Many of the great wine estates of Europe were established and paid for generations ago, so they aren’t still obliged to recoup their initial outlay in the wines they are selling today. As such they can afford to charge less. And as Ted Lemon of Littorai pointed out, not so long ago you could get an EU grant to help set up a winery in European countries. Not so in California – you have to stump up the cash yourself.
Pricing in California seems rather more meritocratic than in Europe. If a wine tastes good compared to its peers, then that is the most important factor when it comes to justifying a price in the local market. Whether it reflects terroir or if it has a long-established reputation is secondary to the quality of the juice in the bottle.
Many of the wine producers I spoke to were keen to see their wines better represented in the UK, but when they speak to UK agents and shippers, the winery is told that their wine is simply too expensive and it just won’t sell over here. And since many of the top wineries have no problem selling all of their production in the States, it doesn’t make sense to drop their prices and make less money just to get their wines on the shelves in the UK. But while there is any disparity in value between Californian wines and those of the other great winemaking regions of the world – due to recouping investment, less brand recognition, an (incorrect) perceived lack of quality compared to other regions, or a general lack of understanding of the region – the UK is likely to remain underrepresented when it comes to the greatest wines of California. And as drinkers, we will be all the poorer for it.
I am in California and want to gift a friend a bottle.
Your comments explain why I can’t find a local London wine shop that stocks quality California reds.
Even Waitrose has a puny selection and not at all the best quality for the price.
Where would you buy a bottle of Caymus or Silver Oak?
Top California bottles like that aren’t easy to find in the UK. The best way I suspect would be to go through a broker like Fine + Rare, Farr or Bordeaux Index. But £500 minimum spend is pretty typical with those guys.
I think that Silver Oak have a UK importer – Wine Treasury – so you could always ask them. Another good call would be to speak to The Sampler: when I worked there they had both of those estates in mature vintages. Though for a touch more than you would find them for in the US!
Good luck in your search…
Having worked for a Central Coast of California fine wine producer I understand the challenges for California wine to be well represented in the UK. Hahn Family Wines produces Pinot Noir, Chardonnay, Pinot Grigio and Merlot all at the $14 price point. Obviously that changes once it is exported, but dramatically so. I would hazard a guess that in the UK the wines retaili for close to 10-12 pounds, but the quality in the bottle compared to it’s peers in that price bracket is in the 20 pound plus range. Of course Spain with it’s glut of wine and close proximity is going to always be cheaper, but the quality can vary substantially. Different mindset. If you just want cheap plonk to get drunk with, then there’s no shortage. If you want to enjoy a decent wine with a meal that isn’t an arm and a leg, then you should look at many of the Central Coast wines that have made it across the pond. Just my 2 pennies. @spiritandwine
Hi Mark. You can indeed get the Hahn wines over here, typically for £13 – £14 a bottle, and not bad value. This is certainly at the cheaper end of what is available over here from California without dipping into the mass market branded supermarket wines. With producers like Qupe, Bonny Doon and Alban there’s clearly some potential to be discovered in this part of the US. I’ll have to go exploring next time I’m over there!
DEAR MATT
Which importer in UK has quality wines from California to offer please ?