A Word From Our MD

January 2019

To our valued customers – a happy new year and best wishes to one and all.

As a business we work hard to manage the balance between our import costs and sale prices carefully to maintain competitiveness in the market while offering the great value and quality we always aspire to.

In usual trading circumstances gradual increases or decreases in exchange rates tend to happen over a long period of time, allowing for gradual changes in price. However, considering the ongoing uncertainty surrounding the UK negotiations for exiting the European Union, the current valuation of Sterling and the Government’s decision to increase duties on 1st February 2019, we must re-evaluate our position.

In 2017, reports of global wine shortages and looming price hikes surfaced after a notably difficult vintage.  The 2018 harvest reports offer a much more positive view, with most regions reporting either ‘typical’ or even record years. Despite this, the global wine market remains ever changeable and this year we’ve seen huge changes in supply and demand from across the globe which of course impacts us in the UK:

  • increased demand for wine in markets such as China adding pressure to both supply and pricing
  • a significant reduction in general alcohol consumption, particularly amongst millennials.
  • premiumisation of drinking habits, moving towards less quantity at a higher quality

We are working harder than ever and collaborating closely with our global suppliers to maintain consistent supply for you at both the quality and price you – and your customers – expect.

We also have the overhanging question of Brexit.  The latest thinking at this point in time is that there are 3 likely options:

  1. Trade deal with agreement for no tariff on EU wine
  2. *EU applies base Tariffs to wine outside EU & UK adopts this Tariff
    1. Still wine = £0.09 per bottle & £0.10 per bottle over 15% abv
    2. Sparkling wine = £0.22 per bottle
  3. *UK terminates the above agreement and WTO rules apply = +32%

* In the event that a tariff is handed down by the EU then as a business we would have no choice but to pass that on in full as it would be treated as a consumer tax like duty & vat.

However, as our country’s position on Brexit changes daily it’s impossible to predict how it’ll affect any business, let alone ours. Whatever the next 12 months may bring, you can be sure we’ll be working hard on your behalf. May I take this opportunity to thank you for your support over the last 12 months and we all look forward to working with you into the future.

Taxation – UK Excise Duty (excluding VAT @ 20%)

    2018 From 1 Feb 2019 Increase
Wine Per 75cl £2.16 £2.23 +7p
6 x 75cl £12.96 £13.38 +42p
Sparkling Wine Per 75cl £2.77 £2.86 +9p
6 x 75cl £16.62 £17.16 +54P
Fortified Wines Per 75cl £2.89 £2.98 +10P
Spirits and spirit based

RTDs (37.5%)

Per 70cl £7.54 £7.54 Nil
Cider Per pint £0.23 £0.23 Nil
Beer (@4%ABV) Per pint £0.43 £0.43 Nil
  source WSTA

(Figures are approximate due to rounding up)

To get a copy of the new pricelist which comes into effect as of the 1st February 2019, in line with duty changes, please get in touch with your sales agent or call the office on 0161 9259140 and we’ll be happy to help in any way we can.

With best regards,

Carl Plath

Managing Director

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