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Wine Cost
                  By bottle or glass, you’d better know the basics




Sunday, December 16, 12
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




Sunday, December 16, 12
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




Sunday, December 16, 12
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.

Sunday, December 16, 12
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.




Sunday, December 16, 12
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




Sunday, December 16, 12
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




Sunday, December 16, 12
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.




Sunday, December 16, 12
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)




Sunday, December 16, 12
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


Sunday, December 16, 12
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)




Sunday, December 16, 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


Sunday, December 16, 12
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



Sunday, December 16, 12
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




Sunday, December 16, 12
Recap
                          Cost                Bottle size
                          Selling Price       Wines by the
                          Wholesale           glass

                          Retail              Bottle Cost

                          Mark-up             Ounce Cost

                          Portion             Glass Cost

                          Flight              Selling Price




Sunday, December 16, 12
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

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Wine cost

  • 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 Sunday, December 16, 12
  • 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 Sunday, December 16, 12
  • 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. Sunday, December 16, 12
  • 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. Sunday, December 16, 12
  • 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 Sunday, December 16, 12
  • 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 Sunday, December 16, 12
  • 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. Sunday, December 16, 12
  • 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) Sunday, December 16, 12
  • 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 Sunday, December 16, 12
  • 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) Sunday, December 16, 12
  • 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 Sunday, December 16, 12
  • 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 Sunday, December 16, 12
  • 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 Sunday, December 16, 12
  • 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 Sunday, December 16, 12
  • 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