Wine prices keeping pace with inflation
Latest Nielsen data shows that wine prices are keeping pace with inflation.
The average price of a 75cl bottle of wine now stands at £4.40 – up 13p on the figure recorded last July. This represents a rise of 3%, in line with the July Consumer Price Index which put overall inflation at 3.1%.
The industry is braced for further tax increases when VAT rises to 20% on January 4 and the duty tax escalator is applied in next spring’s Budget.
The escalator, introduced by Labour Chancellor Alistair Darling, would increase all drinks duties by two percentage points above inflation, but the coalition government is conducting a review of alcohol taxation which could result in bigger rises for some categories.
Germany and Argentina recorded the biggest increases in average prices, with rises of 9.1% and 9.3% [in the UK] respectively.
Nicky Forrest, UK managing director for Wines of Germany, said: “In the past couple of years, we’ve seen sales of German wines over £5 grow consist-?ently and 2010 has been no different, with sales in the £6-£7 sector up by 47% this year.
“It means more people are listening to the experts and discovering the great quality and value German wines offer in the mid-price point.”?The only top 10 country to register a decrease was New Zealand, which was down 39p to £6.
The fall has been blamed on the discounting created by an oversupply of wines in the industry, a situation expected to correct itself following the smaller 2010 vintage.