Published on : Friday, December 22, 2017
The increase in wine prices of United Kingdom will consequently have an effect on the amount of wine consumed by Britons.
The volume of United Kingdom wine consumption is 28 per cent lower: which is 16 per cent because of slower UK economic growth, 7 per cent because of real depreciation of the British pound, and 5 per cent because of new tariffs.
Super premium still-wine sales are the most affected, dropping by two fifths, while sparkling and commercial-premium wines drop a bit less than one quarter.While some may opt for drinking homegrown British wine instead of imported wine due to the price increase, the solution may not be that simple.
The consumption of domestic British wine is also set to decrease should a “large” Brexit take place.
This is due to the fact that there will be “shrunken demand for all wines resulting from lowered UK incomes and raised local prices because of devaluation of the British pound”. However, this isn’t the first time Brexit has had an effect on wine prices in the UK.
According to the data provided by the Wine and Spirit Trade Association in their market report from the second quarter of the last financial year revealed that the price of wine had increased by 3 per cent in the 12 weeks leading up to the start of 2017. There was only a 1 per cent price increase between 2015 and 2017.