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Taxing times, mistletoe and wine...

I think it is fair to say that the developing Irish wine market has hit something of a snag. Thanks to the unbalanced and, quite frankly, bizarre new tax on wine, all of our small retailers will have to increase the cost of wine in their shops at various stages between now and the New Year as their duty-paid stock runs out. This means that their customers will see various price increases per bottle, as many of the big supermarkets may very well hold their price, either by losing margin or by negotiating better deals with the big wholesalers. That some wine shops will close is certain, as the difference between what they can offer their customers and the below-cost selling of the supermarkets widens even further.

 

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