Your Wine
THE PRICE OF WINE
By Leslie-Ann Sheppard
I've read several articles recently in magazines and newspapers about restaurant and retail wine prices. One was titled, 'How to Combat an Overpriced Wine List.' Some of these articles have spawned consumer letters-- a few defending wine lists, others chiming in on the injustices of wine prices.

In this country, wine distribution is a state-by-state entity. Being a Massachusetts resident and a license holder for buying and selling wine in this state, I'd like to clarify some of the pricing and distribution issues.

Wineries around the world find importers. These importers find distributors. Distributors have the salesforce that goes out and sells product to retailers and restaurants. The consumer then purchases wine from the retailer or in the restaurant.

Massachusetts requires this 'three tier' system. It does not allow distributors to sell directly to the consumer. The state collects its tax from the distributor, so that when the wine reaches you, the consumer, there is not an additional tax added to the purchase of the wine. It has been 'included' in the various steps along the way to you. However, at the restaurant level, there is a 'meal tax' imposed.

All of these 'tiers' require specific licensing, through the state, in order to allow the licensees to conduct this kind of business. The cost of a liquor license is pricey if you are a retailer, and much, much pricier if you are a restauranteur. This fact alone explains much of the difference between wine prices at the retail level and at the restaurant level. It is not uncommon for the price of the same bottle of wine to be double at a restaurant.

This may anger some. Until one considers the cost of operating a business.

A licensee cannot sell the wine without a proper, state-approved 'venue.' This means rent, or a mortgage, for the licensee. Wine cannot be sold without lots of insurance and also a certain dose of education - knowledge of identification screening, the ability to 'shut someone off' who has over-imbibed, and of course, product knowledge. Now we're talking about hiring quality staff. To pay this qualified staff, one has to consider the going rate to support the cost of living in any given community. In Nantucket, as we all

know, that number is a bit higher than in the rest of Massachusetts, and is certainly among the highest in the nation.

So, where do the wine prices come from? I haven't even touched upon how the winery sets its prices, which is another complicated story. All of these factors, plus some additional ones: the fact that in Nantucket and other resort areas, many businesses particularly restaurants have a very short season in which to make enough money to sustain their business. Being profitable is a distant, hard-to-reach goal of many rookie businesses, and the reason that many businesses do not make it into their third year.

Will you find fair wine prices on Nantucket? They may be higher than those found on the Massachusetts mainland, in other states, or on the Internet. But then, you'll also find lower gas prices, less expensive groceries, and cheaper pizza in these places.

So what to do about overpriced wine lists? Any good restaurant or wine store will have a full range of options in just about any price range. Sometimes wine list prices start in the mid-20s; some restaurants in Nantucket start in the mid-40s. Again, there are many factors 'built-in' to the prices you will pay. Try not to get hung-up on the prices to the point where it is the focus of the experience, hindering your ability to enjoy the wine and the food. And if you're unable to do that, consider the alternative: $15 martinis! And if the prices seem unjust, remember that you are supporting a local business in your community, so

choose wisely. I

Leslie-Ann Sheppard is the proprietor of The Cellar, a wine and cheese shop on Surfside Road.