Why does wine cost so much

A.� Good wine has always cost much more in Britain that Europe. British Chancellors rarely cut wine taxes, and as a result, buying cheap wine can be false economy as little of whay you pay actually goes on the wine. Wine expert Stuart Walton says it's only when you pass the magic �5 barrier that you really begin to get enough wine for your money.

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Q.� How much is spent on the wine - and how much goes on the duty, bottling, shipping etc

A.� In an average �3.99 bottle, the cost of the wine could be as little as 14p

The rest of the cost as can be broken down as follows:

VAT 59p

duty �1.16

retailer �1.02

producer and agent 17p

marketing 8p

shipping, storage and delivery 30p

case 3p

bottling 10p

bottle 20p labels 3p

crok 10p

capsule 7p

By contrast, in a �6.99 bottle, the cost of the wine will be around �1.33, and other costs such as VAT will rise to around �1.04, duty �1.16 and retailer �1.78.

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Q.� How do prices compare with Europe

A.� Wine has always been cheaper in the chief wine-producing countries. France, Spain and Italy are hardly likely to undermine one of their major industries by piling on taxes.� However, the UK is well placed to buy wine from all over the world at competitive prices.

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Q.� How has the booze cruise craze affected the wine industry

A.� Retailers and wine merchants living near the south coast have been worst hit. Legitimate cross-Channel shopping has declined, according to statistics from the Sainsbury's Calais. There are two reasons for this: the abolition of duty-free on July 1 2000; and the higher prices being demaded by the main carriers. Fares aren't as competitive as they were, and in general fewer people travel over and back in a day than before. Six million Brits still pass through Calais every year, but a substantial proportion of them buy wine from one of the town's 70-odd booze outlets. Savings are still in the region of �2 per bottle (often more with a case of Champagne).

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Q.� Where are the best place to buy wine in Calais

A.� Try Le Bar A Vins, 52 Place d'Armes, 62100 Calais (0033)�3 21 96 96 31 which offers lots of domaine-bottled French wines, especially from the Loire, Burgundy and south of France. Or Perardel, Le Marche Aux Vins, Zone Industrielle Marcel Doret, 62100 Calais (0033) 3 21 97 21 22, which is a warehouse-full of fine wines and growers' Champagnes.

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by Katharine MacColl

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