Latest figures from the Wine and Spirit Trade Association reveal – that if passed on – the average bottle of wine coming from the EU would go up 29p and by 22p for wine from outside of the EU. 99% of the 1.8 billion bottles of wine drunk in the UK are imported, meaning that any added tariffs will have a punishing effect.
WSTA analysis shows how the Sterling devaluation could financially impact on the UK wine industry.
As a result of the 15% drop in Sterling’s value since 23rd June, the cost of importing EU wine could go up £225m per annum. The cost of importing wine from outside the EU could up by £188m per annum. A year like this would cost the industry £413m in total – the equivalent to a 10% hike in total alcohol duty – some of this may get passed on to the consumer, but some will probably need to be absorbed by wine businesses. Nick Clegg, the Lib Dems EU spokesman, has published a food and drink Brexit impact report warning that a hard Brexit will put imported beef, cheese and wine prices on a “cliff edge”.
The wine industry is bracing itself for a tough time ahead and asks for Government support by way of not raising duty and inflicting more damage at the next budget.
Not to forget, wine has become the country’s favourite choice of alcoholic drink, with 71% of adults drinking wine, the equivalent of 39m people. It is the nation’s love of wine which is helping to drive more food, family friendly pubs and bars.