What does Brexit mean for everyday supermarket wine prices? Andrew Shaw gives Decanter his answer...
What does Brexit mean for supermarket wine? – ask Decanter
Brian Fuller, Southampton, asks: Now that 52% of people voting have said that they want the UK to leave the European Union, what will this mean for supermarket wine prices?
Andrew Shaw, group wine buying director for leading wine distributor and retailer Conviviality, replies for Decanter: As with much of the post-Brexit analysis, it’s very hard to predict! However, in the short term the broad assumptions are linked on the euro and US dollar inflationary impact due to exchange rate swings.
These will increase average item pricing from their respective producing countries as of 2017 (most supermarkets will have secured their foreign exchange currency requirements until then). Alternative wine producing countries such as South Africa, Australia, New Zealand and even China will likely increase their market share on the retailer shelves.
The mid to long term effects are potentially both more concerning and uncertain. Depending on the outcome of our trade negotiations with the EU, Brexit threatens the sustainability of many suppliers in Europe who are heavily reliant on the UK market (Rioja for instance).
Brexit may have triggered a rebalancing of the structure of global wine market but as one door closes, another one will open. Interesting times ahead.
Keep up with the latest news: Dollar wine buyers swoop for Brexit deals
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Edited by Laura Seal for Decanter.com
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