In a significant move to invigorate the UK’s wine sector, the government has recently announced a series of reforms designed to boost investment, growth and job creation. The reforms were unveiled by Mark Spencer, the Food and Drink Minister, and are expected to come into effect in 2024. They were developed after a comprehensive public consultation on “Wine: reforms to retained EU law” and are aimed at taking advantage of the opportunities presented by the UK’s exit from the EU while maintaining high standards.
Feedback from industry stakeholders has indicated that certain regulations within the current 400-page rulebook have hindered innovation and the adoption of more sustainable practices. The reforms aim to address these concerns and provide greater flexibility to wine producers, businesses and consumers.
Streamlining packaging requirements
One notable change includes removing expensive and cumbersome packaging requirements, such as the mandatory use of foil caps and mushroom-shaped stoppers for certain sparkling wines. This reduces unnecessary waste and slashes packaging costs for businesses, promoting sustainability and cost-efficiency.
Diverse bottle shapes
The government is also doing away with outdated rules that dictate bottle shapes, enabling producers to use a broader range of bottle shapes for their wines. This move fosters creativity and innovation within the industry.
Importer labelling simplified
Under the new regulations, the importer’s name will no longer be mandatory on the label. Instead, only the Food Business Operator (FBO) responsible for ensuring legal compliance will need to be identified on the packaging. This change aims to streamline trade and reduce administrative burdens, making the UK a more desirable destination market for wine importers.
Hybrid grape varieties
Producers will gain more flexibility to cultivate and utilize hybrid varieties of grapes. This change allows growers to choose grape varieties that are best suited to their needs, reducing the risk of vine loss due to diseases or climate change while providing consumers with a wider selection of wines.
Blending imported wines
The reforms put an end to the ban on blending (coupage) of imported wines, aligning the UK with standard practices worldwide. This shift paves the way for a wider variety of wines, expanding consumer choices.
Piquette production
The reforms also enable producers to create and market piquette, a lower-alcohol beverage made by rinsing by-products of wine production with water and fermenting the rinse. This innovation opens new revenue streams for wine producers and meets the growing demand for lower-alcohol drinks.
The UK wine market reached a value of £10 billion in 2022
The government announced that with both off-trade and on-trade sales, the UK wine market valued over £10 billion in 2022. The UK’s domestic production sector has received major global investment and is growing rapidly.
The UK is a global major global wine hub with a diverse and dynamic wine sector. It is the second-largest importer of wine in the world in terms of value.
In 2022, sales of still, sparkling and fortified wine through supermarkets, convenience stores and specialist off-licences in the UK amounted to around £7.6 billion, while on-trade sales through hospitality outlets totalled an estimated £3.5 billion.
Compared to the size of the UK wine industry, the domestic winemaking sector in England and Wales is relatively small. However, it is growing at a fast pace and is gaining recognition globally for its quality. Production reports for 2022 indicate a 36% increase in production, while the hectarage of vines between 2017 and 2022 has grown by 74% (from 2257ha to 3928 ha).
The full press release can be read here: New wine reforms to boost investment and ease burdens on industry – GOV.UK (www.gov.uk)
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