In June 2016, Brexit caused a national storm between whether the country should vote to leave or stay in the European Union.
Once again it seems Brexit is causing more problems for the country, as Champagne and Prosecco prices are set to rise due to inflation and the weakening of the pound.
Champagne and Prosecco prices are said to rise due to higher inflation and the weakening of the pound. It has also been warned, by the UK’s Wine and Spirit Trade Association, that potential duty increases will cause a rise in the prices of Champagne and Prosecco.
This is said to be by 5 per cent or £1 and by 9 per cent or 59p per bottle. UK Champagne lovers will have to pay a sizeable £2.67 in duty, however in France it will cost just less than 6p. At present, French customers pay 3p versus the £2.08 paid by British customers in duties.
What does this mean?
The wine industry supports 270,000 jobs and contributes £19.9 billion into the UK’s economy. However, many are urging the Chancellor Philip Hammond to make a 2 per cent duty cut, therefore urging more wine sales overall. An average bottle of wine may see an increase of 10% in the UK, an additional 59p per bottle.
In 2016, British wine lovers bought 131 million bottles of sparkling wine from UK shops and supermarkets. This is up 13% from the year previously. A war sparked between British supermarket chains as they applied huge discounts in order to compete against each other.
Facts and figures
Research has shown that sales of sparkling wine has risen by a substantial 80% in the last five years. There’s a huge demand for Prosecco, as it outsold Champagne for the first time in Britain from 2015-16. Contrary to belief, ‘Dry’ January didn’t slow down the sales of Prosecco. According to The Independent, sales of the sparkling Italian wine increased by 79% in January compared to the same month of the year prior.