UK Wine Pricing Uncovered: Vinonomics

The more you pay, the better wine you get.

This might sound obvious enough, but considering the cost of packaging, logistics, VAT, total margins and excise duty, you get considerably more bang for your buck with premium products.

In the most recent budget, Chancellor Rachel Reeves confirmed that from 1st February 2025 there will be an increase in alcohol duty in line with RPI, along with the end of the wine duty easement.

Our Vinonomics graphs show how wines with a higher ABV will be subject to more duty, with a likely increase in cost. This doesn’t take into consideration any other changes in costs and highlights that the more you spend, the better the wine you get for your money.

In two bottles of wine with a ABV above 14.5% the duty will cost £3.21. However, in a bottle which costs £15.65, £4.16 pays for the actual wine itself, compared to a bottle with the same ABV which costs £8.61, in which only £1.56 pays for the actual wine. 

 Not only do you get better quality for your money when you spend more, but this value rises at a much faster rate with bottle price.

 

 

Total margin refers to retailer margin, agent margin and supplier margin.