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.
With the recent budget announcement, duty will be frozen across all alcohol, with duty on wine remaining at £2.23 per bottle. So, when buying a £5.00 bottle of wine in the UK, only 25p pays for the wine itself. This is considerably less than the £2.64-worth of wine you get with a £10 bottle or the £6.98 with a £20 bottle.
Not only do you get better quality for your money when you spend more, but this value also rises at a much faster rate with bottle price. When it comes to the £20 bottle of wine, despite it being four times the amount of a £5 bottle, quality of the wine increases nearly 23 times.
As part of today's budget, the Government has also announced a reform on alcohol duty that will take effect from February 2023. We will update our Vinonomics infographic accordingly when additional information about this has been released.