The Price of Wine

As Dry January draws to an end for some people (very much not us… more on that later), we wanted to take a minute to talk about wine!

More specifically, why it costs so much in the UK compared to France or Spain, where we often find ourselves staring longingly at the wine list prices.  The answer? Tax (or more precisely, duty)

Fun fact: The UK already collects more in alcohol duty than the entire EU combined, and from tomorrow, this will increase even further thanks to a new system announced in the last budget

The key change? The stronger the wine, the more duty it attracts. Here’s how that plays out:

A bottle of wine at 14% ABV currently attracts £2.67 in duty. From tomorrow, that jumps to £3.10—an extra 43p.

In France, the same bottle attracts just 3p in duty. Yep… 3 pence!

What does this mean for restaurant wine pricing?  Most places follow a ‘rule of 4,’ meaning the purchase price is multiplied by four to get the selling price (though pricier bottles get a lower markup).  That extra 43p in duty? It adds about £1.70 to the final price

So, not a huge jump, but in an industry where margins are already tight, every little increase makes a difference

Some good news, though!  Duty on draught alcohol, including wine on tap, is actually going down slightly.  So hopefully, we’ll see more places embracing wine on tap—not just for the tax break but for all the other benefits: lower glass waste, a smaller carbon footprint, and lower wastage

But if you’d rather bring your own bottle? No problem.  We charge a flat £25 corkage per bottle (including magnums), so if you’re celebrating the end of Dry January in style… bring it on!