WSTA renews call for duty cut as fizz sales top 45m bottles

The WSTA has renewed its calls on the Chancellor to cut wine and spirit duty as new stats show fizz sales topped 45 million bottles in the run up to Christmas.

The latest Wine and Spirit Trade market report showed sales of sparkling wines in the off-trade rose 10% on the same time last year, to around £270 million, with a further 5 million bottles sold in the on-trade in the 12 weeks to 31 December. This was a rise of 37%, it said, or worth around £127 million.

Combined sales in the last five years have grown 54% since 2012 up from 21m bottles to around 45m, the WSTA report said, with sparkling wine excluding Champagne selling the equivalent of 132 million bottles, worth over £1.2 billion.

The figures were released ahead of Wednesday’s budget, which is looking somewhat bleak for the drinks trade, after it was reported that drinkers are among those likely to be stung to pay for increase spending in other areas.

WSTA chief executive Miles Beale pointed out that higher inflation, the impact of the pound’s devaluation and the potential for duty increases meant the wine industry was facing a potential “triple whammy” that could be devastating for the trade this year.

“The UK saw the largest ever quarterly sales of sparkling wine at the end of last year but with price rises looming we need government support to ensure that the bubble doesn’t burst when it comes to the British drinkers’ love for fizz,” he said.

“Wine is now the nation’s most popular alcoholic drink and it is vital that government backs the British wine trade which generates £17.3 billion in economic activity.”

“We are calling on the Chancellor to cut wine and spirit duty by 2% at the Budget on Wednesday. This would benefit our industry, the consumer and boost Treasury coffers – just as it did two years ago.”

Beale pointed out that sparkling wine sales had contributed tax of around £468 million last year, rising to £550 million once duty paid on Champagne had been taken into account.

Currently, duty on an average-priced bottle of sparkling wine is £2.67, around 28% higher than still wine, and the WSTA estimated this was likely to go up 9% or around 59p per bottle.

Since 2000 wine duty income has gone up by £2.29 billion, compared to beer’s £592 million increase, and spirits’ £1.419 billion.