default avatar
Welcome to the site! Login or Signup below.
Logout|My Dashboard

More Expensive Cheap Wines

Font Size:
Default font size
Larger font size

Posted: Wednesday, January 28, 2009 12:00 am

I was hoping the State of California’s proposed “nickel-a-drink” tax increase on alcohol would go away, but with a looming budget gap of $41.6 billion, the tax could go into effect as early as this coming week.

Industry players Anheuser-Busch, MillerCoors, Wine Institute, and others have started SinktheDrinkTax.com to “tell Governor Schwarzeneggar and your legislators that a 640% tax increase is simply too hard to swallow.”

They claim wine drinkers will see a 10% price increase per bottle. Industry analysts estimate that Bronco’s “Two Buck Chuck” will become “$2.29- to $2.49-Chuck.”

I would argue that wineries producing wines over $20 per bottle will likely absorb the excise tax increase, rather than boost bottle prices by less than 50 cents.

Therefore, SinktheDrinkTax’s claim that this tax will affect lower-income households more than wealthier households is probably true.

Consider how the tax relates to other costs of winemaking: the bulk of Lodi grapes have been selling for under $500 per ton. This increase of about $1.30 per gallon amounts to over $200 more per ton.

Looking at the cost in this way, it becomes pretty apparent that Lodi will be affected more than Napa, for example, where most grapes are sold for well over $1,000 per ton.

Rules of Conduct

  • 1 Use your real name. You must register with your full first and last name before you can comment. (And don’t pretend you’re someone else.)
  • 2 Keep it clean. Please avoid obscene, vulgar, lewd, racist or sexually oriented language.
  • 3 Don’t threaten. Threats of harming another person will not be tolerated.
  • 4 Be truthful. Don't lie about anyone or anything. Don't post unsubstantiated allegations, rumors or gossip that could harm the reputation of a person, company or organization.
  • 5 Be nice. No racism, sexism or any sort of -ism that is degrading to another person.
  • 6 Stay on topic. Make sure your comments are about the story. Don’t insult each other.
  • 7 Tell us if the discussion is getting out of hand. Use the ‘Report’ link on each comment to let us know of abusive posts.
  • 8 Share what you know, and ask about what you don't.
  • 9 Don’t be a troll.
  • 10 Don’t reveal personal information about other commenters. You may reveal your own personal information, but we advise you not to do so.
  • 11 We reserve the right, at our discretion, to monitor, delete or choose not to post any comment. This may include removing or monitoring posts that we believe violate the spirit or letter of these rules, or that we otherwise determine at our discretion needs to be monitored, not posted, or deleted.

Welcome to the discussion.

Popular Stories



Mailing List

Subscribe to a mailing list to have daily news sent directly to your inbox.

  • Breaking News

    Would you like to receive breaking news alerts? Sign up now!

  • News Updates

    Would you like to receive our daily news headlines? Sign up now!

  • Sports Updates

    Would you like to receive our daily sports headlines? Sign up now!

Manage Your Lists