LotusGroup recently hosted a wine-tasting fundraiser for a local school. The sommelier wanted to focus on value wines, so instead of France, Italy, or Napa, the sommelier chose Spain to showcase what he thought is the best bang for the buck in the wine world. After participating in the tasting, I can confidently say that the sommelier is absolutely correct. Spanish wines are equally delicious as their peers and are sold at a steep discount.
What I found most interesting is why Spanish wines have such excellent value and the lesson it teaches in basic economics. First, Spain doesn’t have the same prominence as Italian or French wines, which command 2 to 3 times the price of Spanish wines per bottle. Second, Spain produces and sells significantly more wine than France or Italy. Therefore, with lower perceived quality but higher supply, a Spanish wine offers a better deal (let’s not call it cheap, but rather high value!).
Next time you’re in search of a bottle, try walking past the Napa Cabs, Willamette Valley Pinots, the Bordeaux, and Piedmonts and treat yourself to an incredible Rioja at a fraction of the cost. Enjoy and cheers!
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