Vinonomics

The more you pay, the better wine you get.

 

This might sound obvious enough, but considering the cost of packaging, logistics, VAT, total margins and excise duty, you get considerably more bang for your buck with premium products.

With the recent budget announcement, duty will be frozen on spirits, beer and cider, but for wine will rise with inflation on 1 February 2019 to £2.23 per bottle! Considering the average retail price of £5.39 per bottle of wine in the UK, only 53p pays for the wine itself. This is considerably less than the £2.70-worth of wine you get with a £10 bottle or the £7.03 with a £20 bottle.

Not only do you get better quality for your money when you spend more, but this value also rises at a much faster rate with bottle price. When it comes to the £20 bottle of wine, despite it being four times the amount of a £5 bottle, quality of the wine increases 23 times.