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….. but it has!
3) The Invasion of Ukraine
And then we had the invasion of Ukraine by Russia and the resulting energy crisis and price increases - and the price of energy affects the price of everything!I have a friend who has been shipping wine from Australia to the UK for 10 years. When he first started it cost €1000 per container - now he’s being quoted €25,000 for the same journey! And some container movements are now being auctioned. No matter how wine is transported around the world - be it by boat, road or rail - they all use energy - which is now much more expensive in this new world that we live in - which I’m sure you’ve all noticed in your own domestic energy bills.
4) Cost of Living Crisis
4) Excise Duty
And now - with increases still working there way through the supply chain to us - we are hit with the government changing the way excise duty is paid on wine from 1st August 2023. Replacing a standing charge for any wines between 5.5 and 15% alcohol by volume, to a graded scale dependent on percentage alcohol content.
In other words - the higher the alcohol level of the wine - the higher duty paid per bottle.
This has been lauded as a ‘health’ policy - but in reality - it’s just a money making exercise by HM treasury which, ironically, I think this will backfire on them in time as the winemakers and industry will simply move towards lower alcohol wines (and thus reducing excise take overall!)
The benefits of this new ‘health’ policy is that sparkling wines prices - which were taxed at a higher rate due to being luxury items - should come down. But a standard 12% bottle of wine will attract an additional 47p tax. The increases on higher percentage wines is even greater.
Over the coming months, I expect to have to put more price changes in place to cover the product, raw material and shipping cost increases still coming through the supply chain to us - together with the cash grabbing policy from government.
It's not only Vino Fandango that’s affected - it’s all wine retailers - including the supermarkets. So, I’m confident that you will continue to find our pricing market competitive against our competition.My advice is - if you can - buy ahead for that party, celebration or Christmas if you can - because the only way for wine pricing to go is UP!
I hope the explanation above helps you to understand that this small, family business will continue to strive to bring the best value wines to your attention - to service your wine drinking needs! And as always, please feel free to contact me with any specific concerns or queries.
All the best, Cheers,
Alan, Diane, Blair, Philippa.