Due to the continued destruction of Europe’s vineyards by heatwaves and searing temperatures, this could cause wine prices to soar by 10%.
Direct Wines CEO David Gates says that a bottle from Spain, Italy, or France will get more expensive as the drought and heat continue.
According to government data, prices for wine and spirits rose by six percentage points in the past twelve months. This is despite the fact that inflation and the cost of living continue to squeeze Brits’ wallets.
However, Mr Gates is concerned that a fourth percent increase in the next year’s GDP could be on the horizon.
The heat is also affecting olive oil harvests, causing prices to soar.
It is possible that the cost of this essential kitchen item could rise by up to 25 percent before the end of the year. This comes mainly from Spain and Italy, which export it frequently.
The Telegraph was told by Mr Gates that hot weather and low rainfall tends to cause lower yields. That leads to higher prices.
Jesus Soto looks after his vineyard was partly scorched in a wildfire in Spain near Cebreros. This happened in July.
Grenache vines damaged by fire on scorched ground at Ad Vinum vineyard. This was after the wildfires of July near Vallabrix in France. Photographed August 11.
“On top of all that, the costs for all dry goods are substantially up because of supply chain issues and energy cost problems.
The upcoming Alcohol Duty Reforms will see a 65p increase in the average wine price. This would further hurt the British wine industry.
The government’s plan to tax alcohol based on its alcohol content will take effect in February. This could mean that red and white wine, usually higher than 11 percent, may be the most affected.
He warned wine retailers that they were being ‘bombarded in every direction’ with inflationary pressure, including staff salaries, energy and delivery costs.
This is because winegrowers in Europe have been forced to pick earlier due to hotter temperatures.
This means that they produce far less than normal, and many Spaniards are predicting a 25% drop in yield.
Francisco Martinez Arroyo is the agriculture minister of Spain’s most important wine region Castilla La Mancha. He said that the lower harvest meant wine would sell more quickly and for a better price.