Understanding UK Alcohol Duty & The Cost of Wine

The landscape of UK alcohol taxation has recently undergone its most significant shift in a generation. At Hic!, we believe in transparency. Understanding the components of a bottle’s price - from the vineyard to the glass - is essential for any discerning enthusiast.

The shift to Alcohol-by-Volume (ABV) Based Duty: As of February 2025, the "Wine Easement" period concluded. The temporary flat rate of £2.67 per 75cl bottle is gone  and it is now calculated with surgical precision based on the wines Alcohol by Volume (ABV). Under this regime, higher-strength wines - such as bold Barossa Shiraz or Californian Zinfandel - attract a higher rate of tax than lighter expressions.

Furthermore, the government has confirmed an additional 3.66% RPI increase effective from 1st February 2026. This ensures that as inflation rises, so too does the "tax portion" of every bottle on our shelves. This will now add roughly 10p-13p to a bottle of wine and up to 38p to a bottle of gin.

Environmental Accountability: The EPR Charge Beyond standard excise duty, the industry is also navigating the introduction of Extended Producer Responsibility (EPR). This is a new environmental levy designed to hold producers and importers accountable for the recycling and disposal costs of glass, cardboard, and plastic packaging. is adding a further 10p-15p per bottle to cover the cost of the packaging life cycle.

While we support the move toward a more sustainable industry, these mandatory charges (often added as a "shipped" surcharge) represent a new, fixed cost in the supply chain. Along with rising logistics and energy costs, the EPR ensures that the "fixed" elements of a bottle price are higher than ever before.

Quality Over Quantity: In this high-tax environment, the "maths of the bottle" becomes clear: the duty on a cheap bottle is the same as the duty on a fine one. When you spend £15 rather than £8, a significantly larger proportion of your money goes toward the actual quality of the wine, rather than the taxman or the packaging levy. We continue to curate our range to ensure that every pound you spend results in the best possible liquid in the glass.

You can find more information here on the Changes to the rates of Alcohol Duty