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LWC launches 8% ABV wines for a changing duty landscape
Frances Bentley, wine buyer, LWC, tells James Bayley how strength-based duty changes may reshape the UK wine market.
The UK’s new strength-based wine duty structure marks a seismic shift for the industry. While designed to align wine taxation more closely with its ABV (alcohol by volume), the policy poses both challenges and opportunities for producers, suppliers and retailers alike.
At the heart of this change lies a fundamental truth: wine is unlike beer and spirits, which typically have pre-determined ABVs. As LWC’s wine buyer Frances Bentley told db, “This change in legislation will impact how some wine is produced for the UK market, as we demand consistent and lower ABVs which may not always be possible depending on the country of origin or method of production.”
The nature of wine production—where ABV can naturally fluctuate between vintages and sometimes even mid-vintage—adds complexity. “Not all businesses have the back-office capabilities to manage that through their distribution network, and this may lead to non-compliance issues,” Bentley said.
For consumers, the changes are even less transparent. Bentley points out a serious gap in public understanding: “The communication around the duty changes has been poorly publicised to consumers, who may not be aware of the movement in duty and see a price change without understanding the governmental policy behind it.”
Balancing innovation with diversity
While the legislation poses hurdles, it also creates space for innovation. LWC has responded with a line of 8% ABV South African wines under its KAMINA brand (pictured). As Bentley describes, these wines are crafted using a unique method: “A portion of the wine is spun down to 0% ABV and then blended into the full-strength wine, allowing for improved mouthfeel and texture.”
“These innovative wines allow customers to take part in the lower ABV trend we are seeing whilst also maintaining quality levels,” Bentley added.
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The response so far has been positive, with strong uptake from LWC’s customers. The duty changes do widely coincide with a growing consumer interest in alcohol moderation. However, this trend may also raise a note of caution. We must ask whether this will lead to an overemphasis on these styles and, ultimately, less diversity in wine offerings.
The risk is a narrowing of choice in favour of wines that fit neatly into the new duty framework. “We also know there will always be demand for higher ABV wines which are representative of their terroir and grape variety,” Bentley insists. LWC remains committed to offering a wide and varied portfolio, ensuring that quality wines—regardless of strength—continue to be available.
“We will continue to offer a best-in-class range, alongside our industry-leading service levels to make sure the customer can choose how they want to respond to these changes,” Bentley said.
The operational impact of the new system cannot be understated. With up to 30 different duty rates to manage, the administrative burden will be significant. Yet Bentley is confident in LWC’s ability to rise to the challenge: “LWC’s in-house bond and commercial team are well-versed in the intricacies of the duty system and are in constant contact with HMRC to ensure compliance.”
She credits the team’s experience navigating Brexit’s disruptions for their preparedness: “Given all the complexities Brexit already introduced to the drinks industry, our team are well prepared and more than equipped for the duty challenge,” Bentley concludes.
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