The average price of a bottle of wine in the UK has risen more in the last 12 weeks than it has in the last two years, according to the latest market report from the UK Wine and Spirit Trade Association (WSTA).
Over the last three months of 2016, the average price of a bottle of wine in the UK passed the £5.50 mark ‘for the first time ever’. The latest data shows the average price is now £5.56.
WSTA said that these figures don’t account for the 3.9% rise on alcohol duty introduced in the March Budget, which would add another £0.08 to the average priced bottle of wine.
In February, the WSTA warned wine drinkers that the price could increase by about 10% (£0.53) as a result of Brexit.
Prediction Becomes Reality
Miles Beale, CEO of WSTA, said, “Last year the WSTA predicted that Brexit and the fall in the value of the pound, compounded by rising inflation, would force the UK wine industry to up their prices. Sadly this is now a reality as an average priced bottle of wine in the UK is at an all-time high."
“Unfortunately, for both British businesses and consumers, we are clear that this is not a one off adjustment, but rather that wine prices will continue to rise. What is even more concerning is that this does not take into account the inflationary duty rise – at a painful 3.9% - on alcohol inflicted by the Chancellor in the March Budget."
"We all know that Brexit will be complicated, but something has got to give and the government must start showing its support for the UK wine industry and the 275,000 jobs that our industry supports by tackling our excessive duty rates at the Autumn Budget,” he added.
Imports
The UK accounts for nearly 15% of the world’s wine imports. It is the second largest trader by volume (behind Germany) and by value (behind the US).
The WSTA reports that 56% of the money British consumers pay for a bottle of wine (£2.16), goes on wine duty. It is even more for a bottle of sparkling wine (£2.77).
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Aidan O’Sullivan. Click subscribe to sign up to ESM: The European Supermarket Magazine.
