Champagne could be facing double-digit price rises – the biggest of any wine styles – post Brexit, according to research carried out by consultancy, The Wilson Drinks Report.
The impact of the 15% drop in the value of the pound on all consumer goods has been widely reported – but its effect is likely to be more pronounced on higher value goods such as champagne.
'Due to the significant proportion of cost attributed to UK duty, the impact of a fall in the Pound is much stronger for higher value products,' says the report.
Assuming that VAT in the UK remains at 20%, and that the 15% fall in the value of Sterling will remain constant, the report envisages that a £25 bottle of champagne could go up by over £3.00 if both producers and retailers insist on retaining their margins – a rise of 12%.
A £9 bottle of prosecco, by contrast, is only predicted to go up by £0.66 under the same conditions – a rise of 9%.
The situation for the champenois is further complicated by a difficult year in the region that saw many producers in the south of the region struggle to harvest any crop at all.