Alcohol levels in popular supermarket wines have been reduced, but consumers are still being charged the same prices, according to recent reports. This comes after UK Government alcohol duty reforms, which impose higher taxes on stronger alcohol. Retailers and producers insist that the move is not a case of "shrinkflation," where product sizes are reduced while prices remain the same. Instead, they claim that they are simply trying to keep prices low. However, wine experts warn that this could lead to a decline in quality, which is bad news for consumers.
THE CO-OP AND ISLA NEGRA MAKE REDUCTIONS
The Co-op is among the retailers that have reduced alcohol levels in some of their wines. For example, their Fairtrade South African red wine, which previously had an alcohol level of 13%, now stands at 11%. Similarly, Chilean wine maker Isla Negra has reduced the alcohol levels in their Merlot and Sauvignon Blanc to 10.5%. These wines, usually sold at Tesco and Ocado for £5.75, previously had alcohol levels of 12% and 11.5% respectively.
PRICES REMAIN UNCHANGED
Despite the reduction in alcohol levels, the prices of these wines have not been adjusted. This has led to concerns among experts, with wine connoisseur Jamie Goode predicting a "race to the bottom" in terms of quality. He believes that in order to maintain lower prices, the quality of the wines will inevitably suffer.
TAX REFORMS IMPACT ALCOHOL DUTY
Earlier this year, the UK Government implemented alcohol duty reforms, resulting in higher taxes for stronger alcohol. Previously, alcohol duty was around £2.33 per bottle. Now, for wines with an alcohol level between 11.5% and 14.5% (which covers most bottles), the duty has increased by 44p to £2.67. However, duty on alcohol with lower levels is progressively lower, while duty on alcohol with higher levels is progressively higher.
RETAILERS DEFEND THEIR ACTIONS
It is important to note that retailers and producers argue that the reduction in alcohol levels is not a cost-cutting measure, but rather a way to maintain low prices for consumers. A spokesperson for the Co-op stated that they made slight reductions in alcohol levels for a small number of key value wines in order to protect customers and members from price increases, without compromising on quality.
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