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Euronews
2 days ago
- Business
- Euronews
UK alcohol duty: Is it killing European wine producers?
In February 2025, the UK government updated their alcohol duty rates and ended a temporary concession on wine that had been in place since 1 August 2023. The reprieve had been an 18-month-long move to help wine producers adjust to a new way of calculating alcohol duties. Namely, tariffs are now calculated by alcohol strength (ABV), rather than volume. This could be seen as a gentle push for consumers to more closely consider the strength of what they're drinking, and it aligns with a wider, societal trend towards moderating consumption. 'This approach is supported by public health experts including clinical advisors to the Department of Health and Social Care,' HM Treasury told Euronews. In 2024, the UK wine market, including fortified wine, was worth around £12.3 billion (€14.3bn), according to data from the Wine and Spirit Trade Association (WSTA). Although the UK does produce some wine domestically, it only accounts for around 1% of consumption by volume — roughly 12-15 million bottles per year. As such, the country relies heavily on imports to feed wine habits. Just over five months after the end of the government's grace period, how is the new duty system affecting the alcohol industry in Europe? And what knock-on effect has it had on consumer pricing? Are the UK's new rules affecting European wine producers? The end of the reprieve in the UK has meant that wine with an alcohol strength of 11.5-14.5% ABV will no longer be charged one flat duty rate as if it were 12.5% ABV. Whilst this means that the duty on 11.5-12.4% wine is cheaper, the duty on wines at 12.5-14.5% has increased. Taking into account the Retail Price Index (RPI) uprating, a bottle of 13% wine now pays £2.88 (€3.34) in tax, 21p more than before 1 February. 13.5% wine pays £2.99 (€3.46), 32p more. The biggest rise is for 14.5% wine which now pays £3.21 (€3.72), 54p more than before the end of the grace period. While this might not seem like a huge rise, it follows the key taxation change in August 2023, which saw 11.5-14.5% ABV wine pay 44p more tax, rising from £2.23 (€2.58) per bottle of still wine to £2.67 (€3.09). Added to this, upcoming EPR charges — based on packaging weight — will add extra expense that cannot always be passed on to consumers. Some suggest this change in duty is disproportionately affecting some producers, as their climates are more suited to certain wine styles. 'The hotter the climate, the higher the strength of the wine,' explained Stannard. Sunny climates produce grapes with more sugar, sugar ferments into alcohol and therefore the more sugar, the stronger the ABV. For example, medium to low alcohol white wines in the 10-11.5% ABV category, such as Muscadet, Soave and Pinot Grigio often come from cooler regions like France, Northern Italy and Germany. Wines with an ABV of 13.5-15% are those most affected by the end of the wine reprieve and typically come from warmer climates like Spain and southern Italy, as well as further afield, like Argentina, USA and Australia. This category includes wines such as Grenache (Garnacha), Shiraz (Syrah) and US Chardonnay. Some Californian reds have even become famous for being over 15% ABV. The wineries themselves are not responsible for paying the alcohol duty; that falls to the importers. While it's too soon to have concrete data on producer sales, the long term effect is predicted to manifest in numerous ways. Freddie Long, export manager at Spain's Long Wines, told Euronews that he expects a decrease in sales for high-alcohol Spanish red wines this year. On the other hand, Jessica Marzo, Director at Italica, a specialist importer of Italian wines said: 'We expect the demand for Italian wines will remain the same as previous years. The demand in general has remained steady however we are expecting more sales of lower ABV wines in comparison to the higher.' One UK-based wine seller told Euronews: 'European wines continue to be successful. Value [can be] found in Spanish, Portuguese and Italian wines, but South Africa still stands as better value.' This continued value in Spanish, Portuguese and Italian wines is perhaps best explained by lower labour costs and therefore lower priced bottles to start with. Italy has no official minimum wage and the legal salary thresholds in both Spain and Portugal are significantly lower than France's monthly €1,767, at €1,323 and €957 respectively. In South Africa, the minimum wage was set in March 2025 at R28.79 per hour (€1.39), which scaling up to a 40 hour week, totals around €240/ month. How are the UK's new duty rates affecting customers? Many importers stockpiled ahead of the 1 February change so much of the wine sold in the UK over the past few months will not have paid the increased duty rates. However, the impact on consumer habits may be visible in the year ahead. 'Within the Treasury, their modelling is a straight assumption that if you increase taxes by 3-4% there will be no impact on consumer behaviour so you can assume your revenue will go up by 3-4% too. There is plenty of evidence that that isn't true,' Stannard told Euronews. It's at a retailer's discretion if they choose to absorb extra costs. If 100% of charges have been passed down to the customer, here's how they might be affecting your glass. Hardly a bank-breaking increase, but if everyone in the supply chain adds a bit extra for profit, it may lead to much bigger price hikes. Future of the wine industry The US is the biggest importer of wine in the world by value. Germany is the largest by volume, closely followed by the UK which comes second in both measurements. Australia, France and Italy are the UK's favourite wine producers, with Spain coming in fourth, by volume and by value. In 2024, the UK imported 1.6 billion litres of wine. Much of that is imported in bulk, from new world producers like Australia, New Zealand and South Africa, bottled in the UK and redistributed. Around 20% of the bulk wine is re-exported in bottles to northern Europe. For producers, the major concern is that globally there is an oversupply of wine, WSTA's Simon Stannard told Euronews. Consumption rates are declining and although production rates have dropped a little over the past few years, the supply is still outweighing the demand. Reflecting on various trends impacting wine purchasing, Stannard added: 'Looking at the last 12 months, I think we'll see volume declines but whether those are any more significant than what is a relatively long-term trend [remains to be seen]. Value wise, overall value will be relatively static.' Though not solely caused by changes in taxation, many large producers of all wines, across the world, are looking at how they can produce lower ABV products. This will take time and there are limitations on how much strength can be reduced. This nonetheless aligns with overall market trends as people seek to lower their alcohol consumption. To support the demand for lower alcohol products, the industry is hoping for new reforms in the UK to match EU regulation on what can be labelled as wine. Currently products under a certain ABV must be labelled as a 'wine-based drink', according to UK regulation. This makes it less appealing for European producers as it requires them to produce bespoke packaging for the UK market.
Observer
09-06-2025
- Observer
In Search of Anyplace but the ‘Most Charming Village in France'
I was finishing a monthlong book tour in France, traveling by train to new cities each night—many I'd never seen. Those 28 days revealed how much of France exists beyond Paris's allure. With four days before returning home, I decided to rent a car and take a spontaneous road trip through southern France. No plans, just the open road. I initially planned to go alone, but then I learned Stephen, an old friend, was also in France, finishing work in Marseille. I suggested we share the adventure. His wife, also a friend, wasn't with us, and there was no romantic motive—just two friends seeking a quiet escape. 'Two for the Road,' minus the love story. We started in Nice, picked up a car, and a local friend recommended we visit Èze, famous for its beauty. But Èze was swarmed with tourists: winding streets lined with shops selling soap and towels. I turned to Stephen. 'Let's avoid any place called the Most Charming French Village.' We headed north, aimless but eager for small moments—good, affordable food and unexpected sights. My goal was to feel like a character in a French film, though I wasn't sure which one. Soon, I saw a handmade sign reading 'Fromage' outside a farmhouse. Inside, a young woman looked like she'd stepped out of a Marcel Pagnol film, offering us chèvre. I asked about nearby bread; she pointed to a dirt road where cows ambled. No English, just locals, fresh cheese, and quiet charm. Later, we drove to Gorges du Verdon, a winding river between steep cliffs, bustling with birds. For about $10, we rented a paddleboard, swam, and ate cheese and bread. 'What about the Côte d'Azur?' Stephen proposed. Who was I to argue? In Villefranche-sur-Mer, we searched for Jean Cocteau's Chapel, famed for its frescoes. It was closed, so we swam near a small quay instead. A good road trip has no plan, and we embraced that. Around 6 p.m., we searched for Airbnb. Usually, I'd spend hours hunting, but I let go. We found a simple place and settled in. The novelist Joyce Maynards four-day road trip in the south of France was guided by pure spontaneity, which is how she ended up in Le Love Room. (Victoria Tentler-Krylov/The New York Times) 'A Dozen Oysters' Next morning, we wandered into a village market. For about 10 euros, I bought a dozen oysters and a glass of Muscadet. Alain, behind the stand, handed me the oysters with flair, saying 'vive la France.' They might've been the best I'd ever had. He even sang as he shucked the second dozen. Stephen glanced at his watch. Sometimes we had plans, then abandoned them. I wanted to see the Calanques near Cassis, but instead, swam and relaxed on rocks, napping in the sun. We made a quick stop in Marseille at Maison Empereur, a historic hardware store. I wanted vintage bulbs and cast iron for cooking, but I only bought a feather duster, a pink hot water bottle, and some French jokes. Le Love Room Later, in Fayence—a quiet, charming town—the name evoked images of still-life paintings, but the town was peaceful. Flowers spilled from stone houses; fields stretched beyond. No tourists—just locals and one Airbnb: Le Love Room. After booking, Stephen suggested dinner. The only open restaurant was Les Temps des Cerises, a cozy bistro crowded with locals. We ordered house wine, foie gras with Calvados, and coq au vin—perfectly prepared. Walking back, we passed an elderly woman leaning out her window with her cat, smiling and greeting us. We returned her wave. Our Airbnb was in an old stone building. Climbing the narrow, steep stairs, we entered Le Love Room, dimly lit with red bulbs. Inside, hooks held whips. The decor was eccentric but spotlessly clean. A machine offered condoms and accessories. The owner thought of everything. Stephen and I settled for the night—he in the bed, I on a leather couch. I laid out my toothbrush; he pulled out his book. Just two friends, calling it a night. The next morning, we returned the car early, heading for Charles de Gaulle. Passing the same woman in her window with her cat, I waved, but she didn't respond. 'She probably knows where we spent the night,' I said. We quickly looked away. Stephen laughed. 'I'll tell my wife I was just sightseeing,' he said as we headed back out on the road—our brief, surprising escape from the 'Most Charming Village in France' confirmed: sometimes, the best moments happen without a plan. —NYT
Irish Times
24-05-2025
- Irish Times
John Wilson: Loire white wines made for warm-weather drinking
As summer kicks in, I start to salivate for the fresh, light wines of the Loire Valley. The river Loire is the longest in France , more than 1,000km from start to finish. Vines flourish alongside a cornucopia of other fruit and vegetables. Recently I listened with envy to a friend who was about to head there by car and ferry to take in the fantastic castles, excellent local food and great wines. The Loire Valley is a fantastic source of white wines, with something to suit every taste, from racy aromatic sauvignon blanc and saline Muscadet to richer, complex, age-worthy chenin blanc. All, including the sweet wines, bring a lightness and freshness that seems to shout summer. There are red wines and rosés too, but today I focus on the whites. The Loire is the original home of sauvignon blanc and produces some of the finest examples, less exuberant than those from Marlborough, but every bit as good. The best-known names are Sancerre and Pouilly-Fumé. Both are 100 per cent sauvignon, and these are some great wines, although better-value sauvignon can often be found in the nearby Quincy, Menetou-Salon, and the larger region of Touraine or the all-encompassing Val de Loire. I have always had a soft spot for Savennières, made from chenin blanc. It goes perfectly with poached salmon and hollandaise. Regulars will know that I am a big fan of Muscadet. Muscadet de Sèvre & Maine is superior to plain Muscadet. The best villages are entitled to use their own name, such as Clisson, Goulaine and Vallet. READ MORE Val de Loire Sauvignon Blanc 2023 Val de Loire Sauvignon Blanc 2023 11.5%, €9.49 Subtle aromas with soft pear fruits and a rounded finish. With summer salads or by itself. From Lidl Touraine Sauvignon Blanc 2023, Les Corbillières Domaine Barbou Touraine Sauvignon Blanc 2023, Les Corbillières Domaine Barbou 12.5%, €17.25 Clean citrus with plenty of satisfying plump green fruits and a nice richness. A great all-purpose summer wine, with or without food. Try it with a goat's cheese salad or crab cakes. From Wines Direct, Mullingar, Athlone and Clos Joubert Muscadet de Sèvre & Maine sur lie 2023 Domaine Haut-Févrie Clos Joubert Muscadet de Sèvre & Maine sur lie 2023 Domaine Haut-Févrie 12%, €24.50 Fresh cool clean green fruits, with a touch of spice and a fine mineral edge. The classic combination would be oysters or mussels, but it would also go with most seafood and summer salads. From Delgany Cottage, Greystones; Lilith, D7; BaRossa, D4 Savennières Champ de la Hutte, Château de Chamboureau 2022, Chenin Blanc, Organic Savennières Champ de la Hutte, Château de Chamboureau 2022, Chenin Blanc, Organic 12.5%, €27 Cool crystalline fruits with a lively acidity and a touch of honey. A wine that grows on you with every sip. Try it with poached or grilled salmon, prawn salad or some asparagus. From Whelehans,
Irish Times
17-05-2025
- Business
- Irish Times
Riesling, muscadet, sherry: Time to give these unloved wines a second chance
This week some great unloved wines . They include once popular regions, countries and grape varieties that have fallen out of favour for a variety of reasons. Often it happens when the producers of a popular region meet increased demand with cheaper and inferior versions of the real thing. Not surprisingly sales drop and it can be difficult to rebuild a name. Muscadet, sherry, and German wine arguably fall into this category. Other wines have managed to seduce us back. Austria, once shunned by Irish wine drinkers following a scandal in the 1980s, is now back on our shelves, where it is joined by an ever-growing array of fantastic Beaujolais. Muscadet has always puzzled me. It is generally light, fresh and fruity, perfect for all those albariño and sauvignon blanc drinkers. The multiples offer decent inexpensive versions, and some of the independents have a few seriously good wines that offer great value. At one stage, Alsace was one of our go-to wine regions. Names such as Trimbach, Hugel and Schlumberger appeared in every restaurant wine list and wine shop. As with Muscadet, the style is generally very appealing; fresh, dry white wines without any oak influence. READ MORE Riesling in general, and German riesling in particular, is one of the world's great wines. Wines labelled Trocken are dry, those labelled Kabinett deliciously delicate, low alcohol and off-dry – perfect for sipping over the summer months. [ Two German wines that are a little bit more expensive, but certainly worth it Opens in new window ] I have come to accept that there will never be a real sherry revolution. It will remain an object of adoration to a small group of aficionados (I include myself) who are aware how great these wines are and what value they offer. Muscadet de Sèvre & Maine Sur Lie, Château de l'Auberdière 2023 Muscadet de Sèvre & Maine Sur Lie, Château de l'Auberdière 2023 12%, €9.20, €11.50 Light and fresh with mouth-watering orchard fruits, lemon zest and a lip-smacking dry finish. This would be perfect with mussels, oysters and other seafood. From Aldi Kuentz-Bas Mosaïk Riesling 2022 Kuentz-Bas Mosaïk Riesling 2022 12.5%, €21.95 An excellent racy refreshing dry riesling with vibrant citrus and minerals. Perfect with chicken, pork and fish dishes as well as summery salads. From O'Briens Wagner Stempel Riesling Trocken 2023 Wagner Stempel Riesling Trocken 2023 12%, €23 Floral, with succulent elegant ripe peach fruits, a touch of spice and a dry finish. This would go nicely with Asian seafood and chicken dishes. From BaRossa, D4; Baggot Street Wines; Martins, D3; Green Man, D6; Donnybrook Fair; Lilith, D7; Mortons, D6 Lustau Puerto Fino Sherry Lustau Puerto Fino Sherry 15%, €13-€14 per half-bottle Delightfully racy, tangy green apples, with almonds, green olives and a lovely saline note. It finishes dry and long. Heavenly with almonds, Iberico ham and fish tapas. From Mitchells, Glasthule, Hatch Street and Avoca stores; Prim's, Kinsale; Whelehan's, Loughlinstown; The Vintry, D6; Ardkeen, Waterford; Redmonds, D6; The Wine Centre, Kilkenny; Barnhill Stores, Dalkey; Bradleys, Cork
