The Price of Wine: Why Prices Are Rising and What It Means for You

The price of wine keeps going up. Higher production costs, packaging, transport and changes to UK alcohol duty have all contributed.

For wine merchants importing from Europe, recent increases in diesel prices and fuel surcharges have added further costs.

But there’s another question worth considering. With so much of the price of a bottle going towards tax and other expenses, how much do you actually need to spend to get good wine?

What Goes Into the Price of Wine?

The cost of a bottle includes much more than the grapes. Before it reaches you, there are several stages to pay for:

• Grapes grown, often by hand, in unpredictable weather
• Wine made, stored and bottled
• Glass produced in energy-hungry furnaces
• Wine shipped across borders
• Imported, declared, taxed and taxed again
• Finally delivered to a shelf or doorstep

Costs have risen at several of these stages, contributing to higher retail prices even before tax is considered.

How UK Alcohol Duty Affects Wine Prices

Alcohol duty is a substantial part of the retail price of wine in the UK.

Since August 2023, wine duty has been calculated according to alcohol by volume (ABV). In other words: the stronger the wine, the more tax is paid. This replaced the old, simpler banded system and immediately pushed duty higher for many everyday wines.

Duty rates can also rise with inflation. The latest increase took effect in February 2026.

The February 2026 Alcohol Duty Increase

Alcohol duty increased again on 1 February 2026, with rates rising in line with inflation.

For wine drinkers, the important point is that duty is based on alcoholic strength rather than the quality or cost of the wine. A modestly priced bottle can therefore attract exactly the same duty as a considerably more expensive bottle of the same strength.

VAT is then charged on the selling price, which includes the duty.

The February increase added to existing pressure from production, packaging and transport costs.

How Much Does Duty Add to the Price of Wine?

Bibendum’s Vinonomics infographic illustrates how tax and other costs contribute to the price of a bottle of wine.

Current UK Wine Duty by ABV

Alcohol duty on still wine is based on alcoholic strength. These examples show the current duty on a standard 75cl bottle:

Figures shown are duty only, excluding VAT, based on rates applying from 1 February 2026. VAT at 20% is charged on top.

On a typical bottle of still wine around 12–13% ABV:

• Duty alone now runs to several pounds per bottle
• VAT is applied on the wine and the duty
• Tax can easily account for well over half the shelf price on lower-priced wines

This is why the price of wine can rise even when producers, importers and merchants are all trying to hold margins steady.

Why the Price of Wine Feels Particularly Painful

Alcohol duty takes up a larger proportion of the retail price of an inexpensive bottle than of a more expensive bottle of the same strength.

• The same duty is payable on a £9 and a £30 bottle if they have the same ABV
• Tax therefore accounts for a greater share of the cheaper bottle’s price
• Merchants have less scope to absorb increases on lower-priced wines

This helps explain why inexpensive wine has become harder to find. You can browse our great value wines under £15.

How Much Should You Spend on a Good Bottle of Wine?

At £10, finding a genuinely good bottle of wine is becoming increasingly difficult.

Consider a bottle selling for £10 at 13% alcohol. £1.67 of that price is VAT, and another £2.99 is alcohol duty. That’s £4.66 in tax before we’ve accounted for the wine, bottle, label, cork, transport or anyone involved in bringing it to your table.

That leaves £5.34 to cover the wine, packaging, transport, distribution and retail costs.

What happens if you spend another £2?

Take two bottles of wine, both at 13% alcohol. One sells for £10 and the other for £12. The duty is identical because the alcoholic strength is the same. The VAT increases by just 33p.

That means £1.67 of the additional £2 is available to cover the wine and the other costs involved in getting it to you.

That extra £1.67 does not all go to the winemaker. It is the additional amount available to cover the wine and every other non-tax cost, including the merchant’s margin. Even so, it helps explain why a small increase in the retail price can make more choice possible.

Where to Find Good Value Wine

There are still enjoyable bottles around £10, although you have to look a little harder. Stretch the budget slightly and the choices open up considerably.

Primordial Red Blend

£9.50

A fresh Western Cape blend of Cinsault and Shiraz, with cherry, cranberry and a little spice.

Buy now

Bleu Blanc Piquepoul Terret

£11.50

A coastal Languedoc white made from Piquepoul and Terret, with citrus fruit and a saline finish.

Buy now

Sierra Grande Cabernet Sauvignon

£11.65

An unoaked Cabernet Sauvignon from Chile’s Colchagua Valley, with blackcurrant fruit and gentle tannins.

Buy now

Another way to keep the average bottle price down is to buy a mixed case. Our Everyday Case brings together three reds and three whites for £58.50, or £9.75 a bottle.

The Everyday Case

Six bottles £58.50, £9.75 per bottle

Three whites and three reds chosen for straightforward everyday drinking, from midweek suppers to having friends round.

Buy now

What This Means for Wickhams

As an independent wine merchant, we sit uncomfortably between rising costs and customers who quite reasonably don’t want to pay more.

• We don’t race to the bottom
• We don’t apologise for fair pricing
• We focus on wines that justify their price

There is still good value at the lower end of the price range, but it takes more careful sourcing than it once did. Spend a little more and the choice widens further, particularly if you’re prepared to explore less familiar regions and grape varieties.

We’ll keep doing what we’ve always done: sourcing carefully, explaining the costs where they matter, and making sure the wines we sell are worth their price.