Don’t whine, but your tipple’s going up
WINE-LOVERS are facing the prospect of big price rises for their favourite tipple due to the fall in the value of the pound.
Last week, online supplier Naked Wines emailed customers saying that from next month the price of half of its wines would rise by about 5 per cent.
The chatty email explained: ‘The cost of wine has gone up. Back in the good ole [sic] 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.’
The email, addressed to its ‘Angels’ – customers signed up to making ongoing purchases – said that while other importers were demanding price reductions from suppliers, it was taking a different tack. It explained: ‘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.’
Rowan Gormley, head of Majestic Wines, which owns Naked Wines, said: ‘I can safely say that Naked Wines are still better value for the quality of wine we provide versus the supermarkets’ everyday ranges, so our Angels can feel confident that they are still getting a brilliant deal.’
However, a spokeswoman said Majestic Wines itself had no plan to raise prices, adding that the high street chain had bought a lot of euros before the Brexit vote, so 85 per cent of its currency costs were hedged.
Meanwhile, Dan Jago, head of wine merchant Berry Bros & Rudd, which carries a Royal Warrant, told The Mail on Sunday: ‘The sudden fluctuation in currency as a direct result of Brexit has taken many importers by surprise. We are no exception. While it is inevitable some prices may increase, despite efforts to keep them stable, we are fortunate in being both a wine and spirits business, so our Glenrothes Malt Whisky from Speyside is seeing strong export performance, as is our sales of fine wine to Asia.’