Brexit to blame for record rise in wine prices, says WSTA

The average price of a bottle of wine has risen more in the past 12 weeks than in the past two years, with Brexit named as the main cause, according to the Wine and Spirit Trade Association (WSTA).

The latest data in the WSTA Market Report Q2 2017 shows that the average price of a bottle has now hit £5.56, up from the £5.50 record seen in the last three months of 2016.

The average bottle of wine is up 19p a bottle compared to the same time in 2015, and up 16p compared to 2016.  

The impact of Brexit – including the drop of the pound and the rising cost of imports ‒ added a 3% rise in prices in just 12 weeks, the WSTA said, in contrast to the 1% rise seen over the past two years.

“It is only a matter of time before costs are passed on to the consumer,” the report warned.

These figures do not take into account the expected extra 3.9% rise – or nearly 8p per bottle – to come from the alcohol duty imposed by the Chancellor in the March Budget, the WSTA added.  

The results come just months after the WSTA warned wine drinkers that the price of wine could rise by 29p per bottle in total as a result of Brexit.

“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,” says Miles Beale, chief executive of the Wine and Spirit Trade Association.

“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.”

He added: “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.”