Why a €5 French wine costs up to 70 shekels in Israel

A bottle of wine that retails for about €5 (approximately 19 shekels) in French supermarkets often sells for between 50 and 70 shekels in Israel. A Calcalist report analyzing the supply chain identifies several factors driving this 3.5 to 7-fold price increase. Shipping costs, including the use of refrigerated containers to protect the wine from Israel's summer heat, add significant overhead. Furthermore, Israel's strict Ministry of Health regulations, which classify wine as a 'sensitive food,' impose heavy administrative and laboratory testing costs on importers. Tariffs also play a major role, as the minimum tariff on imported wine disproportionately inflates the cost of lower-priced bottles. Finally, importer and retailer margins, combined with value-added tax, push the final shelf price into the premium range. Experts suggest that beyond structural factors, a lack of consumer familiarity with global wine pricing in Israel's developing market also contributes to the persistence of these high prices.