1. Wine Cost
By bottle or glass, you’d better know the basics
Sunday, December 16, 12

2. Cost vs Selling Price
Often confused by new comers to the restaurant
math game
Cost = the wholesale purchase price of the product
Selling Price = the retail price you charge your
guest for the product
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3. Purchasing Wine
Restaurants can buy liquor, wine and beer
from wholesale suppliers.
Your state issued liquor license requires you
to ONLY purchase from licensed wholesalers
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4. Wholesalers
Wholesale Liquor, Beer or Wine companies
often sell a variety of brands in each of
theses alcoholic beverage categories
They are controlled by the state in which
they are licensed and can only sell to
retailers in the same state
Most Wholesale Liquor distributors are
required to list their products and pricing in
a state alcoholic beverage guide. This guide
becomes the basis for retailers to build their
cost and selling price.
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5. Wholesale Pricing
Wholesalers mark up their products to cover
the cost of marketing, distributing, storing &
profiting from the sale of wine, beer and
spirits.
For Example: Tablas Creek Winery sells a case
of Chardonnay for $120 to the wholesaler. Who
in turn sells it to the retailer for $180, who
sells it to the customer at $240.
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6. Mark-up
The mark-up or difference between price
and cost = the amount of money the
business plans to gain to support its cost of
operations and profit
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7. Restaurants Wine Cost
When selling wine, we can portion it in a
variety of ways:
By the bottle - 1.5l, 750ml, 375ml, 187ml
By the glass - 2oz, 4oz, 5oz, 6 oz or...
By the flight - a combination of wines
offered in 2oz pours
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8. Portion
Portion is essential in maintaining a
successful beverage program.
The portion aids us in establishing the cost
per serving that we sell to the guest.
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9. Establish Bottle Portion
Wine can be purchased by the case or bottle
from the wholesaler
Buying by the Case is usually the least
expensive way to purchase wine. Most
wholesalers will mark-up your purchase if
ask them to break open a case and sell you
a bottle. ( consider it an unpacking fee)
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10. Wine Cases
Wine Cases are generally made up of 12
750ml bottles per case
Some product may be packed differently:
Beringer White Zinfandel has regularly
sold in a 15 bottle case.
Half bottles are often packed in 24
counts, while magnums may be packed in 6
packs
Prestige wines ( ultra-high price) may
pack 750ml bottle as 6 packs or smaller
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11. Bottle Cost
Divide the Wholesale purchase case price by the
number of bottles in the case
example: Rodney Strong Estate Pinot Noir $192 case
$192 / 12 bottles = $16 per bottle
(Case cost divided by number of bottles)
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12. Ounce Cost
For a glass pour cost, we will need to
establish the cost per ounce.
A 750ml bottle contains 25.4 ounces of wine
If there are 12 x 750ml bottles in a case.
Each case contains 304 ounces
Divide your case cost by 304 to get your
once cost
Example: Rodney Strong Estate Pinot Noir
$192 / 304 ounces = $0.63 per ounce
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13. Glass Portion Cost
Once you have your cost per ounce, simply
multiply the cost per ounce against the
portion of your glass in ounces to calculate
your cost per glass
$0.63 x 6 ounce portion = $3.79 glass cost
$0.63 x 5 ounce portion = $3.15 glass cost
$0.63 x 4 ounce portion = $2.52 glass cost
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14. Building the
Selling Price
To create a selling price that works for the
business, you need to have a strong working
knowledge on how to establish the cost of
the item being sold
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15. Recap
Cost Bottle size
Selling Price Wines by the
Wholesale glass
Retail Bottle Cost
Mark-up Ounce Cost
Portion Glass Cost
Flight Selling Price
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16. Practice
Print the attachment to this lesson and
calculate the bottle cost, ounces per case
and the cost per ounce for the wines listed.
Bin # Wine Name Bottle Size Bottle Case Cost Bottle Cost Ounces per Ounce Cost
Count / case
case
2008 L'Esprit de Chevalier Pessac-Leognan
121 750 ml 12 $288.00
Blend - CS 70%, M 30%
2010 Rancho Zabaco, Sonoma Heritage Vines
122 750ml 12 $133.80
Sonoma County Zinfandel
1994 M McAlister South East Gippsland
123 750 ml 4 $170.00
Cabernet Sauvignon
211 n/v Peter Vella Chardonnay 5L 4 $63.96
2009 Trinchero Calistoga, Napa V Sauvignon
212 1.5l 6 $88.00
Blanc
1998 Chateau Benoit Willamette Valley
213 750ml 12 $143.88
Sauvignon Blanc
214 2009 Sonoma Cutrer Sonoma Coast Chardonnay 375ml 24 $199.92
215 2009 Chateau de Cosse Sauternes Semillon 375ml 24 $672.00
216 2009 Chateau de Jau Rivesaltes Muscat 500ml 12 $300.00
2010 Domaine de Martinolles Pays d'Aude,
221 750ml 12 $120.00
Burgundy Pinot Noir
See attachment link in ulearn
Sunday, December 16, 12