Drinkers have been warned that the end of dry January will coincide with big jumps in the price of wine and spirits as higher tax rates kick in.
From 1st February, an inflation-linked 3.6% increase in duties will come into effect as well as a new system taxing wine by strength. This will mean duty on a bottle of gin will go up by 32p, and for stronger wine, with 14.5% ABV, it will rise by 54p.
Read the full article on The Standard website
NAM Implications:
- Stand-out issue: This is really about the increased cost of admin for wine retailers…
- For each 0.1% ABV difference, there is a different amount of tax to be paid.
- A retailer can have a range of wines with 48 different ABVs between 8.5% and 22%.
- The resulting impact on shelf prices will be greater than the increased tax.
- Think about it…
