How Brexit is pushing up the price of wine by 5% – and how to avoid it
Wine industry bosses have warned of the 'consequences' of Brexit as they predict pushing up prices of plonk
BREXIT could spell bad news for wine-lovers as the cost of a typical bottle of plonk could increase by five per cent.
Drinkers have been warned that a slide in the value of sterling is hitting importers where it hurts - and that they will soon feel the impact of the post-Brexit pound.
Wine and Spirit Trade Association boss Miles Beale says a £188million hike in the annual cost of importing wine from outside the EU is to blame for the likely price-rise for customers.
He claims most wine bottles could go up by 29p.
He said: "We should be under no illusions that wine prices are likely to increase, which in the current climate could lead to a bottle of wine going up by 29p.
"This is of grave concern to the wine industry and it is vital that Government come out in support of the trade which generates £17.3 billion in economic activity."
We should be under no illusions that wine prices are likely to increase.
Miles Beale
Mr Beale added: "A staggering 99 per cent of the 1.8 billion bottles of wine drunk in the UK are imported - prompting concerns that any added tariffs will have a costly impact.
"We are just weeks away from the Autumn Statement. Any increase in duty, on top of the post-Brexit Sterling devaluation, would have dire consequences on Britain's wine trade.
"It is not only consumers who will feel the impact of price rises, but also by more than a quarter of million employees in the world leading UK wine industry."
Last week, online delivery firm Naked Wines emailed customers to say that the price of half of its wines will rise by around five per cent from next month.
It added: "The cost of wine has gone up. Back in the good ole days of early 2016, we lowered our prices when exchange rates were in our favour.
"Since then the pound has steadily plummeted and duty has gone up (again), meaning the cost of wine has crept up.
"Wine-makers supplying the UK need your support now more than ever.
"We’re not the type of business to start a war with suppliers over price. Nor are we going to compromise on quality to hit margins."
It is not only consumers who will feel the impact of price rises, but also by more than a quarter of million employees in the world leading UK wine industry.
Miles Beale
Former deputy Prime Minister Nick Clegg this week warned about the dangers of a hike in costs as the weak pound pushes up the cost of buying from both inside and outside Europe.
He said: “A hard Brexit will lead us off a cliff edge towards higher food prices, with a triple whammy of punishing tariffs, customs checks and workforce shortages."
However, this week Majestic Wine boss Rowan Gormley said he wouldn't rush to raise prices.
He added that while Majestic is working in a tough market, there was not yet a noticeable impact from the vote to leave the European Union.
He also said that consumer spending remained unchanged.
Patrick McGrath, managing director of UK wine importers Hatch Mansfield, said: "It is not well understood that the UK is the global hub of the international wine trade. The fall in the value of Sterling is having a serious and immediate impact on importers.
"While currency fluctuations are an accepted risk for importers, three months on there appears to be little prospect of a return to pre-referendum values.
"The importers are having to meet the increased costs, which is already having a significant impact on profitability.
"In the immediate aftermath of the referendum, we were covered forward for foreign currency. However this 'cushion' has now run out. This will mean that we will be forced to increase our selling prices."
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Wine prices could increase by 5 per cent - here's how you can avoid spending extra pennies
1. SHOP around. Do a google search for wine prices and you'll find different comparison websites designed to help you find the best deal on your favourite tipple. does all the hard work for you by searching the length and breadth of the country to see where sells your plonk on the cheap.
2. JOIN a wine club. Usually you will given a credit to help you to get started on buying your favourite wine. After signing up you have a huge choice of high-quality wines at your finger tips that offer valued customers special deals - without having to leave your home.
3. DOWNLOAD an app. A whopping 19 million people use Vivino Wine Scanner which let's you take a photo of any wine label or restaurant wine list and instantly gives you wine ratings, reviews, tasting notes and food pairings. Most importantly though, it gives you the average price so you'll know when you're being ripped off - and best of all it's absolutely FREE.
4. TAKE ADVANTAGE of being loyal. Most places you shop at will have a loyalty card, but we'll bet you don't make the most of them. They allow you to collect points on every purchase you make so you can go on to buy great wines at a huge discount - or even for free.
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