TOP SELLING WINES COULD DISAPPEAR FROM SUPERMARKET SHELVES IN LONG RUNNING TRADE DISPUTE WITH UNITED STATES

Trade Secretary Liz Truss considering 25% tariff on all US wine imports

28 July 2021 – Millions of bottles of Britain’s most popular wines could disappear from supermarket shelves and pubs after the Government proposed a 25% tariff on all wine imports from the United States. 

Wine from the US make up around one in ten[1] bottles sold in the UK market, including best-selling rosés, with more than 100 million bottles sold in supermarkets and off licences last year.

Trade Secretary Liz Truss is considering introducing a 25% tariff on US wine imports as part of an ongoing trade conflict caused by Donald Trump imposing a 25% tariff on US steel imports in 2018. The UK Government believes tariffs on wine will put pressure on key Democratic politicians, such as Vice President Kamala Harris and Speaker Nancy Pelosi, who have wine producers in their states. 

However, Wine Drinkers UK (WDUK) a collection of wine lovers, makers and sellers, has warned some of Britain’s most popular grapes, including Zinfandel Rosé and Grenache Rosé, could disappear if tariffs are imposed. With around 32% of UK households purchasing wine from the US, no other wine producing nation could substitute its volume, limiting consumer choice. The under 44s make up 40% of those that enjoy wines from the United States, meaning that a tariff would disproportionately impact younger UK wine consumers.

WDUK supporter Ed Baker, Managing Director of one of the UK’s largest bottling plants, Kingsland Drinks, warns: “It is likely if the Government introduces this tariff, it will make these popular US wines unfeasible in the UK. Simply put, they will disappear from supermarket shelves and pubs.”

A YouGov survey conducted for WDUK found that one in three (32%) of UK adults who drink alcohol say wine[2] is their favourite alcoholic drink, beating beer[3] (25%) and spirits[4] (25%) into second and third place respectively. However, since 2010, duty on wine has increased significantly more (+39%) than on beer (+16%), cider (+27%) and spirits (+27%).

Ed Baker adds: “Wine drinkers are already disproportionally disadvantaged compared to some of their alcoholic counterparts when it comes to custom tariffs. Adding a 25% tariff on US wines will continue to unfairly penalise these consumers. It is time that the Government ensures that wine is treated fairly when it comes to tax.”

Contact

For more information please contact wduk@mhpc.com

About Wine Drinkers UK

Wine Drinkers UK is a collection of wine lovers, makers and sellers, fed up with being unfairly taxed. The Cut Back Wine Tax campaign was launched to get a fairer deal for wine drinkers across the country. Wine is woven into our social fabric, with almost a third (32%) of Brits saying it’s their preferred alcoholic drink. The UK’s wine drinkers deserve the Government’s support, not punitive treatment.  

Our supporters include wine producers, bottlers, retailers, and enthusiasts, as well as representatives from the UK’s hospitality sector

You can see a list of our supporters here: www.winedrinkersuk.co.uk

Methodology

Fieldwork was undertaken by YouGov. All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2191 adults, of which 1,815 drink alcohol. Fieldwork was undertaken between 5th – 6th January 2021. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+).


[1] WSTA submission to HMT 2021

[2] Wine includes red and white wine, rosé and sparkling wines

[3] Beer includes lager, real ale/bitter and craft ales

[4] Spirits include vodka, whisky/whiskey, rum and gin