Fine wine news

Rises to excise duty in the UK could have a damaging effect on small and independent wine merchants, leading one retailer to launch an e-petition calling for the government to freeze duty.

Alcohol duty, plus VAT, can be particularly damaging to wine merchants selling expensive fine wine as the tax is greater, explained Martin Platts, owner of Just Fine Wines.

He stated in his petition that since 2006, duty on a 750ml bottle of wine has risen by more than 44 per cent and retailers are struggling to compete with supermarkets that can afford to apply discounts.

Unable to absorb duty increases like supermarkets, Mr Platts said "this leaves the largest wine sales market for the big players".

He added: "Whilst many independent merchants are happy to leave this sector to the major retailers and concentrate on higher value wine sales, it must be said that the past and current governments' policy to increase excise duty on alcohol not only has little or no effect on prices in the major outlets, but also fails to combat the UK binge drinking culture."

The retailer has called on the industry to sign the petition urging the government to halt any alcohol duty rises, which could be as much as 7.2 per cent in March.

Posted by Helen Jenkins