Published on October 24, 2022
The Great ‘Investing in Wine’ Dilemma explained.
It does not seem logical to suggest that paying more will give us greater value for money. But when it comes to buying wine in the UK, this is exactly what wine buyers should be considering.
It is no surprise that the United Kingdom has some of the highest alcohol duty rates in Europe. What you may not realise is that, while VAT rises in relation to the cost of a bottle of wine, the amount of excise duty is the same irrespective of whether the price of the wine is £5 or £50. The flat rate currently stands at £2.23 for a 75cl bottle of still wine; therefore, by the time VAT is added to this figure, more than 60% of what you are paying for a £5 bottle of wine. After also taking packaging, shipping, storage and marketing costs into the equation, as well as the slim margins made by retailers, the money consumers are actually spending on the wine itself can be as low as 31p.
Suddenly, a cheap bottle of £5 wine doesn’t seem like such a great bargain.
Therefore if you choose to buy a more expensive bottle of wine, a proportionately higher percentage of your money is going towards the winemaking. While only 6.2% of the price of a £5 bottle of wine (31p) goes towards the liquid in the bottle, that figure increases to 27% (£2.70) and 35.2% (£7.03) respectively for a £10 and £20 bottle.
Don’t just be a tax contributor, start investing in great wine.
3 Ways to Sell More Wine in your Venue
1. Getting customers to explore
46% of consumers enjoy trying new and different styles of wine on a regular basis. Knowledge is key to provide the customer with what they are looking for and, therefore, recommend a relevant wine. Focus on the benefit to the customer, and of your business.
2. Getting the right range
Choose wines that appeal to you venue’s customers; recognising the needs of different wine drinkers. Younger inexperienced customers will look for famous grapes from popular countries; whilst more knowledgeable customers may prefer something different from the mainstream. Consider the popularity of wines from different countries and reflect this on the list. DWUK’s unique service can help your business and tailor your wine lists to your market, ensuring that you are investing in the right bottles.
3. Progressive pricing
Applying a fixed gross profit margin across your entire wine list places your better wines at a disadvantage as it reduces sales and leads customers to only buy the cheaper alternatives. By using a progressive pricing structure, where the pricing ladder rungs are closer together, means more top wines will fall within the budget of more consumers. Your business will makes more profit as more expensive wines are enjoyed by customers.
Want to learn more about the Sheridan Coopers Wine Portfolio?
Get in contact with your Account Manager to find out more about how the Sheridan Coopers Wine Portfolio can benefit your business. Also, we have chosen an environmentally friendly USB version, instead of printing them! DWUK are looking towards a more sustainable, and flavoursome, future!
We have a knowledgeable team of experts that can assist you with help and advice when choosing the perfect selection of wines to suit your venue.
Create a wine list with Sheridan Coopers and receive FREE Marketing POS Support from our in-house design team*
*Please discuss with our sales team – min. spend required.
A light and fresh honeysuckly nose with a fresh, crisp, peachy palate and full firm rich fruit and good acidity. Charming, light and fresh, sets the tone for this pleasing and elegant Champagne.
This pale yellow wine with green tints has intense and expressive aromas of fresh fruit, such as grapefruit, green apple and pineapple, that intermingle with notes of white flowers, jasmine and orange blossom.
Light pink colour. The nose open, quite expressive with notes of strawberry, cherry. A bouquet of red fruits. In the mouth it is fresh, lively with notes of red fruits. Beautiful balance, warm and greedy.
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About the author
Chloe Lewis
Chloe looks after all copywriting and proof-reading for Drink Warehouse UK, working with the Marketing team to deliver educational content to all our customers. She has spent many years in the hospitality sector, moving from behind the bar to now helping venues to stock their own. You can find more from Chloe about beer, cider, spirits, wine, non-alcoholic, soft drinks and RTDs all over our blogs, website, social media and Set The Bar magazine.
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