Let’s talk about lower alcohol levels in wine… 

We have all learned over the years that subtleties come through at differing levels of alcohol to the benefit of many wines.  What really is the driver of lower alcohol wines in the UK? 

As a consumer (and shopper!) I have seen the difference more exaggerated than ever before.  A branded, delicious Malbec from South Africa coming in at 14% on offer at £10 at a premium supermarket vs the award winning £7 Douro red at 12.5% from one of the two highly recommended ‘discounters’. 

This is on a backdrop of duty rate increases over the last 18 months, driving 12.5% ABV wines up 24% and those at 15% ABV up 49%! 

These duty rates sit beside an increase in production and dry goods costs, not to mention an increase in global temperatures which would naturally push the wine’s alcohol levels upwards. 

Are we seeing a manufacturing of price points or is this truly answering a consumer demand for lower alcohol levels?  The insights say consumers are moderating, but do they really understand the impact of 12.5% vs 15%?  Do they ever look at the back label?   

I am not sure they do when it comes to wine and if they do, do they understand it?  It takes quite a mathematical calculation to understand the impact of 2.5% over the course of a bottle of 750ml wine. 

And at what point does the quality begin to be impacted?  At 12% there is an impact on how the flavours are held in the wine and below this, it creates a very differently structured wine.  Perhaps this is good, tapping into the moderation trend, but I lean towards the position that this is a pricing play, which conveniently answers the moderation trend. 

Only time will tell where this will go but at these levels of alcohol and duty, there isn’t much movement!

Written by: Philip Ainsworth, Director of Spirits & Wine