Drinkers are likely to see the prices of their favourite wines ‘skyrocket’ by at least 10 per cent in the New Year due to wet weather and rising bottle costs, makers have warned. 

Sources in the industry say that suppliers are being hit hard by rising costs for labels, bottles, and other packaging. Meanwhile, transportation prices have risen due to inflation spiraling out of control.

As a result, wine costs are rising because of poor harvests in many countries. This is due to the extreme weather conditions such as wildfires or torrential rains.  

In an effort to stay competitive, suppliers are intentionally holding off on increasing wine prices after busy New Year and Christmas periods.

However, prices for wine will likely skyrocket by next year. Some estimates suggest a double-digit increase in price, but wines coming from the worst countries could be even worse.

Wine suppliers have been hit by increased costs of labels, bottles and other packaging, while transportation prices are also on the rise, according to industry sources (stock image)

Increased costs for wine producers in labels and bottles have had a negative impact on their bottom lines. However, transportation costs are rising according to industry sources (stock photo).

The Grocer was told by one supplier that they have been taking on all costs, including rising prices. This has not been passed on.

“But you will notice big changes from January 1st. In the coming weeks, price hikes will be recommended. Retail pricing changes from next year should follow.

Glass is rising. They are increasing the price of labels. It is frightening to see the inflation rate at this time. 

He stated that retail outlets ‘haven’t allowed price hikes through because they have said that consumers won’t accept a higher point in the retail price range’.

Wet weather has caused poor growth in both New Zealand’s prosecco and Italy’s wine blanc producers.

Australia, America, and Europe also experienced wildfires that destroyed vineyards. Northern hemisphere farmers have been hit hard by late frosts which reduced yields.

Suppliers are deliberately holding back from increasing wine prices until after Christmas and New Year, but experts have predicted a double digit' price rise next year (stock image)

Suppliers are deliberately holding back from increasing wine prices until after Christmas and New Year, but experts have predicted a double digit’ price rise next year (stock image)

These pressures are compounded by the shortage of lorry drivers, rising fuel costs, and supply chain pressures that have a negative impact on the wine industry, driving up transportation costs.  

The cost of making bottles and labels are on the rise for similar reasons, while almost every other aspect from picking to processing to supplying have been affected.

Miles Beale, CEO of the Wine & Spirit Association said trade body members had been ‘buying stock forward, trying to keep price inflation from coming through to the consumer in the short term’.

While some suppliers could start to transfer increases in December, it is possible that supermarket chains absorb the increase to stay competitive with their competitors. 

He added that he can’t recall a 12-month period when there was so much difficulty in so many areas.

Spiraling inflation isn’t just affecting wine. Pubs warn that pints of beer will become more costly despite Rishi Sonak’s 5% reduction in the beer duty.

MailOnline received a statement from landlords last month stating that they would not expect booze prices to drop when it was facing rising gasoline prices, increased supply chain pressures, and staff shortages. 

A few expressed disappointment that the beer duty was not being reduced on cider and beer 40l kegs, but the craft breweries’ 30l beer kegs.  

MailOnline spoke to Tim Martin, Wetherspoon’s chairman. He said that any savings would be passed on to the drinkers when duty is reduced in 2023. However, smaller pubs claimed it would not make any difference to them.

Dawn Hopkins, the Rose Inn owner in Norwich and Vice Chair of Campaign for Pubs stated: “There is no way that this will result in a change of prices across the bar.

“Prices are rising and changes will not come in until 2023.” The law also exempts small kegs, which discriminates against craft beer producers.

Wine is not the only beverage that is set to suffer from spiralling inflation, as pubs have warned that pints will get more expensive despite Rishi Sunak's five per cent beer duty cut

The spiralling inflation of wine is not limited to wines. In fact, pubs are warning that pints may become more expensive even though Rishi Sunak has cut the beer duty by five percent 

In his Budget, which comes into force in 2023, Rishi Sunak also said a planned increase to the duty on lower-strength spirits, wine, cider and beer will be cancelled

Rishi sunak stated in his Budget (which comes into force 2023) that an increase in the duty for lower-strength spirits and wine, cider, beer was being cancelled.

Peter Tiley runs the Salutation Inn, Ham, Gloucestershire. He said that he appreciated the government’s efforts to assist pubs, but not enough for when they were “dying on the feet”.

He stated that it was unrealistic to think the pint price would fall given how pressure pubs are currently under.

Rishi sunak stated in his Budget that an increase to duty on spirits lower than wine, cider, beer, and other beverages will not be implemented. However, the 28% duty on sparkling wines, fruit ciders, prosecco, and premium sparkling wines will be eliminated.

Taxes on Bailey’s will be reduced at 41p per bottle, Gordon’s Gin (9p per can), Canti prosecco (87p each bottle). While the tax rate on Stella or Carling beer will be unchanged in stores, it will go down by 3p per bottle in pubs.

But other beverages will see increases, including Cockburn’s port (£1.09 per bottle), Hardy’s merlot (35p per bottle) and Scottish favourite Buckfast (81p per bottle). The retailers may pass savings along, but it remains to be determined.

MailOnline has learned that the Treasury may extend the beer duty to reduce it to 30l. Kegs, based upon the industry consultation currently underway.

According to a spokesperson, “We expect most of the draught beer sold in pubs will qualify for this relief, even if it is made by small or craft brewers.”

“We consult the industry about the criteria to ensure the relief supports pubs instead of supermarkets.