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|