Blind taste tests show most people can’t tell the difference between $10 and $100 bottles of wine. ~$10 bottles are sold based upon production and distribution costs. Get into the more expensive territory and it’s all about trying to get people to believe they are part of a very exclusive club that can not only taste the difference, but also afford it.
It’s very similar to the diamond trade and audiophile equipment.
Owner Frank Franzia doesn’t bother with notions of terroir. All the wine is blended together, regardless of its origin. As of 2003, Bronco processed 300,000 tons of grapes to make 20 million cases of wine, of which a quarter are Charles Shaw wines. Asked how he sells wine for the same price as a bottle of water, Franzia responded, “They’re overcharging for the water. Don’t you get it?”
Related – I buy Yellow Tail all the time.