Brexit is forcing up wine prices, warns WSTA
WINE PRICES ARE rising – and the worst is yet to come, according to the WSTA (Wine & Spirit Trade Association), the UK’s leading wine industry group. It blamed the effects of the Brexit vote.
Figures for the first three months of 2017 showed that the average price of a bottle of wine in the UK has reached an all-time high of £5.56. The WSTA added that prices rose by 3% in the first quarter of 2017, versus only a 1% rise across the previous two years.
WSTA chief executive Miles Beale commented: ‘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.’
The WSTA forecasts that there is worse to come, as the ‘triple-whammy effect of Brexit, inflation and duty increases takes its toll’.
Not all wine retailers agree, and some larger players will undoubtedly look to the supply chain to absorb costs. However cost pressure on importers, wine merchants and restaurants has intensified to such a point that price rises are becoming evident, according to the WSTA.
Looking ahead to the Brexit negotiations, the WSTA has sought to put pressure on the UK government over duty tax, and to prevent English ports from becoming a ‘lorry park’ if the UK leaves the EU customs union.
The average price of a bottle of wine in the UK is now £5.56