Brexit increases price of wine bottle in UK, says WSTA report
The average price of a wine bottle has increased more in the last 12 weeks than it had over the past two years in the UK, according to a report of the Wine and Spirit Trade Association (WSTA).
In the last quarter of 2016, the price of a regular wine bottle crossed £5.50 and now the latest data indicates that the price has touched £5.56.
WSTA suggests that the increase in price is primarily due to Brexit, which has decreased the value of pound and increased the cost of imports.
The report indicated that there has been a 3% increase on wine prices in 12 weeks to the beginning of this year, as compared to just 1% increase over the previous two years.
These figures, however, do not include the impact of the 3.9% rise on alcohol duty imposed by the Chancellor in the March Budget, which added another 8p to the average bottle.
The Wine and Spirit Trade Association's chief executive officer (CEO) Miles Beale 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 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.”
The report predicts that wine prices will continue to rise due to Brexit inflation and duty increases.
Image: Wine becomes expensive in UK. Photo: courtesy of The Wine and Spirit Trade Association.