Cheers! Your wine is 270% more expensive
Why does an affordable French wine costing 5.5 euros sell for 70 shekels in Israel? We traced the bottle's journey from the winery to the shelf and uncovered how logistics, taxes, and bureaucracy drive up the final price.
Customers at the Monoprix retail chain in central Paris face an immense selection of wines. For instance, the La Vieille Ferme brand costs 5.5 euros (about 19 shekels), making it a popular "everyday" wine. In Israel, however, it is hard to find, and the price can reach 70 shekels. How does the price increase 3.5 times? "Calcalist Supplement" traced the journey.
First station: leaving the winery
According to importers, the Shaked company, which holds the exclusive franchise for the brand, pays the winery about 10.4 shekels per bottle. This is based on a large order (6,000 to 12,000 bottles).
Second station: immigration to Israel
Land transport to the port of Marseille adds 99 agorot, sea transport costs 2.17 shekels, and insurance adds 20 agorot—a total of 3.36 shekels. Using refrigerated containers to protect against heat adds up to 1.2 shekels. Logistics can add 2 to 5 shekels per bottle before it even reaches an Israeli port.
Third station: local logistics and bureaucracy
At the ports of Ashdod or Haifa, customs clearance fees (2.77 shekels) and licensing costs (1.38 shekels) are added. Wine is defined as a "sensitive food," requiring separate lab tests for every label. Importers criticize the bureaucracy: licensing a series of ten labels can cost 10,000 shekels. The price per bottle reaches 17.89 shekels.
Fourth station: customs duty
Israel imposes 12% + 1.41 shekels per liter, with a minimum floor of 3.9 shekels per bottle. For cheap wines, this means the duty constitutes nearly 38% of the purchase price. Customs adds 23% to the price. The cost is now 20.42 shekels.
Fifth station: supply chain and margins
Importers add an average of 35% (11.68 shekels), and stores add about 30% (14.3 shekels). With VAT (8.6 shekels), the shelf price is 56.4 shekels. In practice, it ranges from 50 to 70 shekels.
Summary: the "youth tax"
Producing kosher wine adds at least 10% to the price. Experts note that the market suffers from a lack of competition and a consumer willingness to pay high prices. According to Gal Zohar of the W Wine School, the market is maturing, and consumers will eventually demand better value for their money.
