When it comes to luxury, you’re usually prepared to spend a few extra dollars to fully embrace the indulgence. But there’s a difference between something that’s truly worth the expense…and just plain getting hosed. Most seasoned shoppers know if that designer handbag or those strappy Manolos merit the price tag, but the one area that often remains baffling is the wide variance in wine prices.
We know the vintage in a restaurant is pricier than that same bottle in the store. Wine typically runs about twice its base cost in retail and three times the amount in restaurants. Brian Duncan, wine director at BIN 36, helps shed some light on the cost differences.
“When talking about the difference between restaurant and retail, consumers shouldn’t compare the prices too much,” Brian says. “Restaurants have a chef preparing a meal for you and they serve you wine in crystal, not plastic cups. All of those amenities cost money, and revenue from wine sales help pay for that.”
Angela Roman, wine director at the Signature Room at the 95th, agrees. “There’s also a full-time person dedicated to making sure the wines you drink are good, and that comes at a cost,” she says.
Fair enough, but what about the difference in prices between restaurants? Why does a 1955 Chateau Lafite-Rothschild Bordeaux run $1,690 at NoMI, but is $3,740 at Charlie Trotter’s? Is there a deeper reason behind a 2004 Opus One selling for $275 at The Capital Grille and $425 at NoMI? According to Brian Duncan, absolutely. The volume of wine a restaurant purchases is a large contributor to determining the price on the wine list. Establishments that buy in bulk get better deals on caseloads and can leverage the dollar amount with greater flexibility. Because of this, smaller restaurants often charge more for wine since they’re buying it in smaller volumes. “It’s like buying from Oriental Trading versus Neiman Marcus,” Angela says.
The same can be true for wine retailers. Margaret Hlavaty, the wine sales supervisor for Sam’s Wines & Spirits, offers her insider’s knowledge on buying and selling. “Smaller retailers have higher costs than larger stores,” she says, mostly due to scales of economy. According to Margaret, wine-of-the-month clubs tend to be overpriced as well.
Despite these logical pricing justifications, a smart, albeit quality-conscious, wine drinker should beware of over-charging. Margaret suggests doing your homework. “A little research before you shop can tell you what you can expect to pay for just about any particular wine, in many different parts of the country.” She recommends www.winezap.com, a Web site that specializes in price comparisons between retailers nationwide.
Dining out is a bit trickier. Without the oh-so-handy Internet at your fingertips, it’s tough to be wine-savvy, and many diners are embarrassed to bring up money at an upscale restaurant. First off, due to more wine selling by the glass, it’s typically more inflated than by the bottle. As for varietals, Angela says Chardonnay and Cabernet usually carry the highest mark-ups. “These can get marked-up more simply because they’re the most popular,” she says.
Brian’s advice is to stick to your favorites. Get to know what wines you like and educate yourself on the expected price range. Most restaurants have their wine lists posted online or will be glad to fax or email you a copy.
Generally, you won’t get fleeced on top-shelf wine, particularly with Champagne. Your Chateau Latours and Dom Perignons are usually right where they should be; quality wines will bring in enough profit on their own. Concerning venues, the biggest offenders tend to be hotels, and American West Coast wines are a commonly inflated region.
“Napa Valley has a tendency, namely with Cabernet, to be more expensive,” Brian says. “It’s a real estate issue and an ego issue. Wine makers are afraid to price wines moderately because their neighbors are getting more money for their wine.” Increases in land values have driven up the price of wine, as winemakers are charging more for their products to cover the property costs.
Oregon wines are in a similar position. Aside from real estate overheads, these wineries are trying to make a name for themselves – no easy task in the company of established French and Italian wines. As a result, wine prices inflate as an attempt to broadcast their product’s excellence, which is actually somewhat true.
“They are profoundly committed to making quality wines,” Brian Duncan informs us. “They want to be taken seriously on the same level as Burgundy and are looking for respect as winemakers.”
For excellent wine where the quality is proportional to the price tag, Brian recommends other California regions, such as the Central Coast, Paso Robles and the Santa Lucia Highlands. Many California wineries use second labels (like Polo by Ralph Lauren) to experiment and produce vintages that Brian says are “really stunning,” such as Foxglove by Varner and Twenty Rows by Vinoce. You can get all the flavor and feeling of Napa without the mark-up and attitude.
When embracing opulence and quality, it’s important to keep in mind that cost doesn’t equal quality. They often correlate, but knowledge is your best bet when separating the two. A woman in pursuit of quality knows exactly what she wants and accepts no substitutes…or sub-par wines.
THE CORK CORNUCOPIA
The bottle rundown at some of Chicago’s finest restaurants.
By Lindsey Reiser
Cakebread Cellars, Sauvignon Blanc, Napa, 2006
The Capital Grille: $60
NoMI: $75
Chateau le Nerthe, Chateauneuf-du-Pape, 2005
North Pond: $83
Blackbird: $98
Veuve Clicquot Ponsardin, Yellow Label, Reims, NV
Bin 36: $95
N9NE Steakhouse: $110
C House: $125
Hanzell Chardonnay, Sonoma, 2004
Charlie Trotter’s: $105
NAHA: $135
Geja’s Café: $145
Peter Michael, La Carriere, Chardonnay, Knights Valley, 2005
Seasons Bar at the Four Seasons Hotel: $139
Sixteen: $168
Charlie Trotter’s: $280
Veuve Clicquot, Le Grande Dame, Reims, 1998
Seasons Bar at the Four Seasons Hotel: $275
David Burke’s Primehouse at the James Hotel: $295
Blackbird: $332
Krug Grand Cuvee, Brut, MV
Seasons Bar at the Four Seasons Hotel: $264
C-House: $295
Signature Room at the 95th: $335
Sixteen: $340
Spiaggia: $345
David Burke’s Primehouse at the James Hotel: $350
North Pond: $450
Ornellaia, Tenuta di Ornellaia, Bolgheri, 2004
The Capital Grille: $295
Sixteen: $375
Spiaggia: $475
Shafer, Hillside Select, Cabernet Sauvignon, Napa, 2003
Seasons Bar at the Four Seasons Hotel: $315
The Capital Grille: $410
Sixteen: $440
Opus One, Napa Valley, 2004
Signature Room at the 95th: $240
Charlie Trotter’s: $400
N9NE Steakhouse: $445
Colgin, Carriad, Cabernet Sauvignon, Napa, 2002
Seasons Bar at the Four Seasons Hotel: $492
Charlie Trotter’s: $585
Dom Perignon “Oenotheque,” 1993
Charlie Trotter’s: $550
NoMI: $695
Bryant Family, Cabernet Sauvignon, Napa, 2005
Bin 36: $900
NoMI: $1,295
Bryant Family, Cabernet Sauvignon, Napa, 2004
Bin 36: $950
NoMI: $1,195
Chateau Lafite-Rothschild, Bordeaux, 1955
NoMI: $1,690
Charlie Trotter’s: $3,740