Following the Budget last week – in which the chancellor announced an increase in alcohol duty of 3.66% in line with inflation – Bibendum has released an infographic illustrating the costs behind an average bottle of wine. 

Based on a 12.5% ABV bottle of wine, the graph shows that excise duty will now contribute £2.87 to a bottle of wine. This joins a plethora of other costs, including packaging, logistics, VAT, the price of wine and EPR fees. 

Jamie Avenell, group buying director at Bibendum, commented: “Whilst not unexpected, at a time when consumers are already under pressure in their spending, this increase adds further strain on everyone in the supply chain, all the way through to producers – many of whom have nothing left to squeeze. It risks reducing consumer choice and diminishing the experience of the wine category as more wines are pushed out of affordability.” 

Speaking to Drinks Retailing, Miles Beale, CEO of the WSTA, added: “This Budget has been described as a ‘death by a thousand cuts’, and for wine and spirit businesses those cuts run deep. Our members are still reeling from the tax hikes introduced in February, which added new layers of red tape through the move to taxing wine by strength. 

“There are no winners under the UK’s punishing alcohol duty regime. Higher rates mean people buy less, reducing revenue to the exchequer, squeezing businesses and forcing consumers to pay more. These further tax increases will not only drive-up prices but could also mean some of consumers’ favourite wines start to disappear from shelves.” 

The WSTA added that the average duty for a 13.5% ABV red wine would rise to £3.10 from £2.99 and an 11% ABV white wine will rise to £2.52 from £2.44.