Wine Value in a Bottle

Value of wine in the bottle in the UK showing the relationship of tax to wine value.

Supermarkets account for a huge amount of the wine sold in the UK but what is actually in that bottle of cheap wine?
Purchasing any bottle of wine, whatever the cost, will give the government £2.16 in Duty and 20% VAT.
On a £6.00 bottle of wine there is £1.00 VAT so that leaves only £2.84 for everything else to be accounted for, including the wine that is in the bottle.
Transport and Duty will always stay the same.  The margins and VAT increase as the sale price increases but so does the value of the wine.

With a bottle of wine costing between £5.00 and £6.00 there is only £0.60 – £0.80 in wine value. These wines will probably have been industrially produced to keep costs down, and shipped in bulk to be bottled at the destination. There are still wines available for less than £5.00 but how can they have any quality when you look at costs involved.
A wine costing £10.00 to £12.00 will have over £3.00 in wine value and is more likely to be bottled at source. (The country of origin). These wines will be of a better quality because the wine-maker has a larger margin to work with so being able to produce a better product.
I would always recommend anyone who enjoys their wine to look at wines that start from around £10.00 per bottle to ensure they get more for their money.