Price Points

Until late 2007 the pound sterling was worth about 1.47 euros.  It then dropped sharply to about 1.25 euros by early 2008. After a further slip it has consolidated at around 1.19 euros in mid 2009.

Early in 2009, duty rose from £16.05 per case/£1.34 per bottle to £20.25 per case/£1.69 per bottle.

So a wine you could buy for £4.49 in 2007 would have cost £5.00 (probably £4.99) in 2008 and £5.59 (probably £5.69) today.  That’s a rise of 24% and it completely changes what you can expect at any price point.

In the left hand column of the table below I show the value of the wine itself, at 2007 prices. The other three columns show how the price of a bottle of that same wine has changed after duty, VAT and the fall in the pound.

At the bottom of the price range the taxman is doing a lot better than  you are.

Whatever you thought you could buy for £3.99 now costs £4.99, the £4.99 bottle now costs £6.20 and the £5.99 bottle costs £7.49. Clearly the retailers have had problems maintaining price points in the face of shifting wine prices and taxes which probably explains the disappearance of some good-value wines and the downgrading of others.

Wine itself at eu1.47/£ Bottle mid 2007 Bottle mid 2008 Bottle mid 2010
£0.69 £2.39 £2.59 £2.99
£1.04 £2.79 £2.99 £3.49
£1.21 £2.99 £3.24 £3.74
£1.63 £3.49 £3.83 £4.35
£2.06 £3.99 £4.42 £4.97
£2.48 £4.49 £5.00 £5.59
£2.91 £4.99 £5.59 £6.21
£3.33 £5.49 £6.18 £6.82
£3.76 £5.99 £6.77 £7.44
£4.61 £6.99 £7.94 £8.68
£5.46 £7.99 £9.12 £9.91
£6.31 £8.99 £10.30 £11.15
£7.16 £9.99 £11.47 £12.38
£8.02 £10.99 £12.65 £13.62
£8.87 £11.99 £13.82 £14.85
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