Beverage industry cracks down on excise duties on wine and champagne
A new report on the drinks industry has highlighted Ireland’s continued fondness for wine, despite consumers spending more on excise duty there than in any other EU country.
The Drinks Ireland report shows we consumed 8.8 million cases of wine last year, down 13% from the previous year when the hospitality industry was shut down for much of the year. year, resulting in increased sales for home consumption.
Despite the decline, wine comfortably remains the country’s second-favorite alcoholic beverage after beer. White wine is the preferred choice, holding 48% of the market, ahead of red wine at 45% and rosé at 7%.
According to the report, Chile retains the title of most popular country of origin for Irish wine consumers with a market share of 24.3%, followed by Spanish and Australian wines.
While French wines remain the fourth most popular wine, it is one of the few countries to have seen its market share increase in the last year, mainly due to the fact that French wine is easier to export to Ireland in relation to the logistical challenges faced by wines from other countries. markets.
The report highlights the drink’s popularity despite bottles of wine in Ireland attracting the highest amount of excise duty of any EU country, adding €3.19 to the price of a standard bottle.
Last year, the wine sector paid €385 million in excise duty to the public treasury, generating more than €3.5 billion in excise duty over the past decade.
The report says the €3.19 excise means Ireland tops the ranking of European countries, followed by Finland, which charges €3.16, and the UK, which charges €2.65. . However, a number of countries, including Italy, Germany, Spain and Portugal, do not levy any excise duty on wine.
In Ireland, the first year of the Covid-19 pandemic saw record wine sales as hospitality restrictions led consumers to buy more drinks at retail outlets. Wine has been the main beneficiary of this new reality, which has seen more than 10 million cases sold in 2020.
While wine sales remained flat in the first quarter of 2021 with some restrictions remaining in place, there were significant declines in sales for the remainder of 2021.
“As ‘cost of living’ concerns rise, consumers continue to pay more than their European counterparts for alcohol,” said Jonathan McDade, director of Drinks Ireland.
“For sparkling wine drinkers, the excise tax is doubled, with a rate of €6.37 on a standard bottle. It is in fact a tax on the feasts of life and special occasions.
“This disproportionate level of taxation needs to be addressed urgently at this difficult time,” he said.