Vinonomics – UK Wine Pricing Uncovered
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 the recently increased cost of excise duty, you get considerably more bang for your buck with premium products.
With today’s budget announcement, excise duty on wine will increase by 3p to R2.08 per 75cl bottle. Considering the average retail price of £5.39 per bottle of wine in the UK, only 68p pays for the wine itself. This is considerably less than the £2.83 worth of wine you get with a £10 bottle or the £7.15 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 16 times.
Premiumisation is a growing trend in the world of wine and spirits, with consumers increasingly happy to spend more on better quality drinks. Contact us for more information.