It seems that everyone is constantly talking about Brexit, and rightly so. With uncertainty surrounding so many areas of daily life, from recruitment to international travel, there’s a lot that needs addressing. This also applies to the wine trade, particularly due to the import/export nature of the industry.
Something that’s consistent when it comes to writing about Brexit is that the words “could”, “may” and “might” are used a lot (or at least they should be). This is because everything is still up in the air right now, with the only concrete fact being that Brexit will definitely have an impact one way or another. Still, it’s worth looking into how Britain leaving the UK could affect wine, so here are a few thoughts to mull over whilst enjoying a glass of your current favourite.
A study by the Journal of Wine Economics suggests that there will be a price increase of up to 25% across all bottles of wine that are imported into the UK. If this doesn’t bother you much because you plan to just drink British wines, we’re sorry to say that they too could also see a price hike. The logic behind this is twofold: lower demand for wine, in general, will prompt the need for higher prices, whilst growth in market share is often accompanied by a price tag increase because… well… the companies can get away with it. However, it’s all down to the individual producer, so fingers crossed that some decide to do their customers a service by not altering what they charge for a bottle.
Due to general inflation, you may not have even noticed that Brexit has already caused wine prices to go up. The Wine and Spirit Trade Association says that the final three months of 2017 saw the average price tag increase by 3%, compared to just a 1% rise during the two years prior. The likelihood of new tariffs being put in place (up to 32%) is the justification for a much heavier price escalation being on the cards.
Even if you’re flush with cash, Brexit may lead to reduced choice when it comes to international wines. Producing countries such as South Africa, Australia and Chile will need to undergo renegotiations of how products are exported to the UK. The result would be no wines from these countries making their way over to Blighty until all of the red tape is sorted out, which could take time.
Having said all of that, it really is anyone’s guess. One outcome could be that wine-producing countries decide to drastically reduce their prices so that Brits can still enjoy their creations, or that our national wine consumption doesn’t take a hit at all, thereby minimising the negative effect on your weekly shopping bill. It’s all very fuzzy at the moment, but what you can depend on is that Wines Online will continue to sustainably source the very best wines available and present them to you in a way that won’t break the bank.
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