In last Sunday's Tribune, Lar Veale recommended three wines - Protocolo from O'Briens and two wines from Aldi - one at a fiver, the other a Chilean Merlot at €4.69. I know that journos are there to give their recommendations as they see fit and the tumbling prices and incredible value in wine is great from a consumers point of view. Nobody is challenging the figures though, asking how is it so cheap? For those of you at the back who haven't been paying attention, here's how a wine at €4.69 breaks down:
Retail Price €4.69
Less Vat 21% €0.81
Less duty €2.05
Less transport €0.50 (conservative - has to get from Chile to Germany, Germany to Ireland etc)
Less materials €0.50 (bottle, label, closure, outer box etc)
Leaves €0.83 for both Aldi and the poor guy who has to make the stuff.
Even the most basic industrial swill will cost at least 1 euro per litre, so what's going on?
The wine is really really cheap. In which case it will not be good enough for Lar to like it?
Aldi are selling below cost - legal, but not sustainable
Aldi love the Irish people so much that they just want to give them wine as cheaply as possible and are not interested in profit.
I suspect it is some combination of 1 and 2. I don't know. But somebody knows. And somebody should be asking the question on behalf of the consumer.