'Tax forcing up drink prices' – WSTA report

17 June, 2011

The Wine & Spirit Association says record tax increases are driving alcohol prices up across the board.

The organisation’s latest Market Report shows sales of spirits in the year to May 14 were flat in volume but 6% up in value.

Sales of wine dropped 2% in volume over the same period, while value sales rose 3%.

The report also showed a 42% drop in sales of wine in the sub-£3 category, while sales at between £3 and £4 were 20% down over the year.

At the same time, wine sales between £4 and £5 rose 24%.

Chief executive Jeremy Beadles said: “This year’s further above inflation increases in excise duty and the rise in VAT and other taxes have really fed through to prices and millions of hard-pressed consumer know it only to well.”

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