How Much Does Wine Actually Cost?

What are the costs in producing a bottle of wine?
What are the costs in producing a bottle of wine?

This inforgraphic reveals the actual cost of the materials used to make a bottle of wine, but fails to take into account everything else, like the overhead of the winery including building/office cost, staff salaries and benefits, marketing, distribution mark up, taxes, and so on. However, it does reveal how all these years Fred Franzia has been able to produce a wine for only $2 and turn a profit. Small margins paired with huge volume and the cheapest materials possible.

So using the average numbers from the graphic, a bottle of Australian wine not aged in Oak barrels costs $3, whereas a California Cabernet aged in Oak barrels runs around $12 to produce.

Would it be cost efficient for more wineries to offer refillable large jugs/bottles for tasting room patrons? The Wine Garage in Calistoga does this already. I tasted the Bordeaux blend from them and it was quite delicious. Could they be on to something?

View the graphic.