Jane MacQuitty
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It’s time to kiss goodbye to £2.99 wine. Not because we are all buying better bottles, but because Gordon Brown says so. The Treasury warned the UK wine trade last month to expect a tough budget, with duty increases likely to be well above inflation. Subsequent trade speculation has veered from the frankly dismissive – in the belief that duty hikes would have a disastrous effect on alcohol revenue – to an acceptance that the Chancellor, Alistair Darling, will bump up table wine duty from £1.33 a bottle to £1.71, the level at which sparkling wines are rated. This would mean that duty and VAT would be almost £2 a bottle, even for the cheapest wines, leaving a tiny sum for transport, packaging and the actual cost of the wine itself. Gloomier still are predictions that duty on alcohol generally may go up 30 per cent to deal with binge drinking.
The painful truth is that if sterling continues to fall against the euro (it’s already 10 per cent down on last year), wine prices won’t move up just one notch, to £3.49, but two, to £3.69 or £3.89. Given that Asda and other price-sensitive supermarkets register a 30 per cent drop in sales every time their £2.99 or £3.99 wines pop up a few pence, I’d say the likely budget increases will be crippling for all.
Exacerbating this are the problems besetting some of Britain’s largest wine suppliers, most notably Australia. Three consecutive bumper harvests there were followed by savage drought and frosts, which ruined the 2007 vintage and are likely to reduce 2008’s yield, too. Overnight the £3.99 Aussie reds and whites have been replaced almost everywhere with £4.99 bottles.
Getting used to paying more for the bottles you’d crack open mid-week without ceremony will be hard. My advice is to stock up now on £2.99 bottles before the budget arrives next month. Zingy, drinkable £2.99 aperitif whites to consider include the Co-op’s Argentinian sauvignon blanc (see the star buys below) and Sainsbury’s delicious light, lemony 2006 Muscadet, La Régate (£2.99), which is a testament to the Loire’s tasty whites in this vintage. Also at Sainsbury’s is the brilliant 2006 Gran Tempranillo (£2.99), a fine, fat, spicy, plummy mouthful from Cariñena, which lies southeast of Rioja. Majestic Wine’s much-admired Cuvée de Richard range from France is already being priced at £3.39 and £3.79 a bottle, but thankfully its robust, inky, yet plummy 2006 La Serrana Tempranillo, a Spanish table wine from Castilla y León in the north, is still £2.99 a bottle.
Even Tesco is struggling to make this price point work, but its fat, supple, spicy 2007 own-label Argentinian Shiraz supplied by Argento is a good £2.99 buy, ditto its pleasant, ripe, curranty 2007 Chilean Cabernet Sauvignon. Make the most of them while you can.
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since the last rate hike, all the wine drinkers in my street agreed to do a 'wine run' every month to stock up on wines in france. That's a whole street not paying duty to the greedy government. I recommend everybody else does the same! We buy £3-4 bottles that would cost £10+ here and every household in the street gets a trip to France subsidised by their neighbours. It's perfect. Darling and Brown do whatever you want as we are smarter than you (which isn't difficult)
Phil C, London, UK
I do not understand why a moderate drinker like myself should be penalised just because a load of inadequate yobs and their parents cannot exercise some self discipline and control.
Nick , Harwell,
Move to France it costs £1.5 a litre for excellent wine and £40 for ordinary wine. Its also cheaper for houses etc....
bob taylor, castelnau, France
Hmmmm, the government wants to keep a lid on inflation yet they increase the duty on Wine and Petrol - it seems like one hand doesn't know what the other hand is doing
James, Bristol, UK
This government's answer to everything is raise taxes on petrol, cigarettes and alcohol. Brown and Darling are a joke just look at the Northern Rock fiasco. How can they impose above inflation rises when most people received below inflation pay increases? They know the cost of everyhing but the value of nothing. Labour has no chance at the next general election.
Stefan, Slough, UK
costs keep going up and up ;O(
kt, London,
For 3 quid I can buy very good wines in France or Spain and probably other countries. This government greed disguised as an act for the good of the people is scandalous. The British already have to pay more for their petrol, tobacco and alcohol then most other EU countries to fill the government coffers. This hits the lower income consumers hardest and is a disgrace from a government that is socialist in name. Rather than educate people about drinking they choose to deceive people to fund their mistakes. Brown & Darling you are both cowardly, treacherous and pathetic.
Frank, Manchester,
hello from Germany, where we pay less for a bottle of wine but actually have progressive and meaningful income tax.
Take your pick.
Gabs F, Berlin, Germany
I imagine that most Times readers arenât too concerned at the disappearance of a bottle of wine for £2.99, and Mr. Edwards makes the point well. However, if duty is raised to £1.71 a bottle, then half the cost of a bottle selling for £4.89 will be Vat and duty.
Is this really acceptable when there is no, or next to no duty in France, Germany, Spain and Italy?
A point worth making is that UK wine merchants and retailers have to include duty as part of the cost of the product they are selling, with the exception of fine wine merchants selling wine âin bondâ. A 38p duty increase really means a 51p hike, assuming a 25% margin, plus Vat: 60p. Worse still, a restaurant with a 66% margin on wine will have to increase their price on wine, including Vat, by £1.78 a bottle. And that excludes any currency movements.
An increase of this scale will be disastrous for hundreds of independent wine merchants and restaurants. As for how wine lovers stock up, this could be a tipping point.
Gavin Quinney, Bordeaux, France
Regardless of how one might feel about the potential bump in wine prices caused by the Budget, and even in the face of the admittedly occasional bottle of drinkable wine at sub four quid prices, Jane MacQuitty if not the punters at Asada and Tesco should get over this obsession with such low priced wines in the UK.
Really, it's shameful. A 2.99 bottle of wine has so little already going towards the liquid inside, even less of which is destined to support the people who grow the grapes or make the wine, that if you can't "splash out" on a bottle that costs just a couple of pounds more, then don't buy wine. You're not doing the wine business any favours at these ridiculously low prices. Drink less, pay more, drink better, and help small, quality focused producers who depend on a reasonable return for their efforts stay alive in the market. It's better for your health and the health of the environment as well: 2.99 wines are the 1.99 chickens of the wine world, and we can all do better.
Eric Edwards, London,
Right then the next eurotunnel leaves in.....
At this rate Mr Darling it'll be chaeper for me to drive from Scotland to France to stockup. Hows that going to reduce global warming? I'd like to think it was to prevent bingers but the reality is thats this is about Gordon overspending.
James, Glasgow,