How is overly cheap wine made?

Question

I’m currently drinking a wine that costs 3 usd/1.5l bottle. I was wondering how do they manage to sell these at such a low price? What are they made out of?

In: 10

Answer 1

Here is what a business man familiar with the wine export business in Hungary told me :
You buy wine cheaply directly from the growers/producers and add water and maybe some wine taste enhancers to it. Then you fill it in nice bottles and export it.

To give you an idea of prices, I use my favourite wine as an example:

You get a Tokaji Aszú 5 puttonyos 750ml for about US$ 14 in supermarkets in Hungary. The same wine costs US$ 7 a litre from the producers. The same wine cost US$ 47 per 350ml (!) in New Zealand.

That business man used 1 litre of Tokaji to produce 10 litres if export “Tokaji”…