Since the credit crunch of 2008 we might be drinking less in Blighty but that hasn’t stopped the value of the UK wine market increasing by 15% to around £10.6 billion in 2014.
At this point, you could rightly conclude that if we are drinking less wine but spending more then its because of tax.
Tax on wine has gone up considerably in the UK since 2008, by almost 60% (£1.56 to £2.47 inc. VAT). Thats quite a lot, and the third highest in Europe behind Ireland and Finland (they have VAT at 23% and 24% respectively!) In France you’d pay just 3 pence in duty on a bottle of wine… sigh…
However, its not just tax, our spending habits have changed. Apparently the biggest growth is in the premium wines area for bottles costing between £7 and £14.
So we are drinking less but prepared to spend more to get a better product. If we continue to do that then by 2018 we will be spending £11.3 billion a year according to forecasts by Vinexpo, and we will have displaced France as the world’s second biggest still wine market. The US is the biggest and currently bigger than the French and British markets combined.
Full story in the FT.