More than 1,000 wines on sale in UK supermarkets have increased in price, after an easement period introduced to allow suppliers time to adjust to new duty rules ended this month, analysis of Assosia data has revealed.
Over a third (37%) of the 3,358 wines on sale across Sainsbury’s, Tesco, Waitrose, Morrisons and Asda on 31 January have already risen in price over the past three weeks [Assosia 3 w/e 21 February].
The number of wines to have a higher pre-promotional price – 1,243 lines by an average of 4.1% – far outweighs the 174 to have seen prices fall over the same period.
Some lines have gone up by as much as 45%. Louvel Fontaine Vintage Champagne has gone from £20 to £29 in Asda, while a bottle of Campo Viejo Rioja Reserva has increased by 29.4% to £11, also in Asda.
Southern Star Pinotage has gone from £5.50 to £6.65 in Morrisons – a rise of 20.9%.
Meanwhile, Barefoot Bubbly Pink Moscato has risen by 14.3% – from £7 to £8 – in Tesco.
The new duty rules mean wine is taxed incrementally according to abv. That marks a change from treating all wines between 11.5% and 14.5% as though they are 12.5%, as was the case under a temporary system in place from August 2023 until 1 February 2025.
Critics of the changes called for the ‘easement rules’ to be made permanent, arguing the new duty system would add to administrative costs and fuel inflation.
The government, however, is understood to believe making easement permanent would have disadvantaged lower-strength products, including many English wines.
Tax regime ‘punishing and complex’
The price rises showed wine suppliers and retailers were “struggling to absorb” duty increases alongside the “expensive administration burden” resulting from the end of easement, WSTA boss Miles Beale said.
The new UK alcohol tax regime was “punishing and complex – especially for wine”, Beale said. “It has already pushed up prices.”
Taking into account duty increases in August 2023 and February 2025, the amount of duty on a bottle of red wine had increased by 98p in the space of just 18 months, Beale said.
Wine and spirits companies were “set to face another round of punishing tax increases” from new waste packaging recycling fees such as EPR later this year, Beale added.
The new duty system was introduced “to modernise and simplify the duty system, prioritising public health and incentivising consumption of lower-strength products”, HM Treasury said.
Wine producers and importers had been given “an additional period adapt to the strength-based approach, which has been in place for cider, beer and spirits for over 18 months”, it added.
Meanwhile, Wairose said the impact of duty changes on wine was a “wider industry issue”.
“We work hard with our suppliers to keep prices down,” the retailer added.
Asda, Morrisons, Sainsbury’s and Tesco have been approached for comment.
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