Five Strategies to Beat the Alcohol Duty Changes

The UK government is set to introduce a significant overhaul of the alcohol duty system, taking effect on 1st February 2025. The tax will be calculated based on the ABV% of the wine, increasing in increments of 0.1% ABV rather than applying a single rate for wines between 11.5% and 14.5% ABV. For example, if the wine is 12.5% ABV, the duty will be £2.67 per 750ml, if it is 12.6% ABV, it will be £2.69 per 750ml, and so on and on.

Read more on the new alcohol duty change.

In simpler terms, higher-alcohol beverages will face higher taxes, while lower-alcohol options will see smaller increases or potentially reduce.
For wine lovers, this means that wines with higher ABV levels, typically 12.5% and above, will be the most affected. Bold red wines and fortified wines, often boasting higher alcohol content, are particularly vulnerable to steep price hikes.

While the intention behind this change is to align alcohol duty rates with public health goals, it’s clear that both consumers and the wine industry are about to face a wave of challenges.

For everyday wine drinkers, the new duty system could mean higher prices on the wines you love, particularly richer reds, fortified wines like port, and premium whites.

The wine trade isn’t escaping unscathed either. Importers, retailers, and distributors will face additional costs, not just from the higher duties causing higher prices and resulting in a potential hit on market competitiveness but also from logistical challenges, such as updating pricing structures and managing inventory during the transition. Imagine – recalculating the cost of thousands of wines based on their ABV% by every increment of 0.1%!

Producers worldwide will be forced to adapt as well. Many will need to reprint labels to display exact ABV percentages, incurring added costs and delays. Administrative burdens, such as tracking shipments and calculating duties for the UK market, will also increase, creating more work behind the scenes.

The ripple effect is clear: the new duty system will require effort from every part of the wine supply chain, all of which could trickle down to the consumer in the form of higher prices.

The wines you know and love could soon cost significantly more, especially those with higher ABV levels. Take this opportunity to stock up on your go-to bottles, be it your favourite reds for Friday nights or the sparkling wine you reserve for celebrations. Think of it as an investment in future enjoyment.

If you have a few reliable “house wines” that you regularly reach for, consider buying them in bulk now. Not only will this save you from future price hikes, but it will also ensure you always have a quality bottle on hand for any occasion.

At Wanderlust Wine, we are holding its prices steady until Friday, 28th February 2025, so act fast to secure your bottles before the new duties take effect.

Quality over quantity is the mantra here. Instead of buying multiple budget wines, consider allocating your budget to fewer, higher-quality bottles. Premium wines often provide a more satisfying experience, meaning you can drink less but enjoy more.

As the new duty system favours lower-alcohol options, now is the perfect time to explore wines with ABV levels below 12.5%. Many delicious sparkling wines, rosés, and whites fall into this category and offer excellent value under the new system. Plus, they’re lighter and refreshing—a win-win!

Wine subscriptions often provide curated selections at discounted prices. Subscriptions can help you discover hidden gems while ensuring you receive great value for your money. Some subscriptions even lock in prices for members, shielding you from the immediate effects of duty changes.

Check out our Wine Subscription Plans.

The countdown is on, and waiting too long to adapt to these changes could leave you facing significantly higher prices. By stocking up, exploring new options, and shifting your approach to wine, you can stay ahead of the curve and continue enjoying every sip.

Take advantage of our pre-change pricing by placing your orders before 11 AM on Friday, 28th February, and rest assured that we’re committed to helping you navigate this shift with ease.

The upcoming changes to the UK’s alcohol duty system may seem daunting, but they don’t have to spell disaster for wine lovers, like you. Plan ahead and adjust your buying habits, you can beat the duty hike while continuing to enjoy incredible wines. Now is the time to act!