Defra has set out a package of wine reforms due to be introduced during 2024. They include: removing the requirement for imported wine to bear the importer's address on the label; Ending the mandatory use of mushroom corks and foil wrappers on sparkling wines; abolishing rules regarding bottle shapes; Remove the ban on blending imported wines; and allowing the production of Piquet – a means of making a drink with a lower alcohol content by fermenting and rinsing off the waste produced by wine production with water.
Justin Nock MW, director of online wine and spirits sales and investment platform Decant, looks at the impact (or lack thereof) of the changes.
These new laws will have very little impact on the overall UK wine trade, as the UK is almost exclusively a market for imported wines.
UK wine production is around 12.2 million bottles per year (Wine GB) which is less than 1% of the approximately 1.7 billion bottles consumed in the UK in 2022 (Statista).
By far the biggest impact on imports will be the elimination of the need for a specific UK importer back label.
This will allow producers globally to use a standard back label across markets, reducing costs and administrative burden.
The importance of this should not be underestimated, as it means that the UK can remain an attractive market to do business in and not a painful one.
Other changes are somewhat useful, but are primarily cosmetic. The use of hybrid grape varieties is already well established in the UK. Proposed new legislation in the UK is a major deregulation aimed at promoting innovation in the wine sector which is contrary to the aim of the PDO regime. It has the potential to dramatically change the way wine is managed and blended in the UK.
Easing restrictions on picket and blending will largely allow UK producers to cut costs, not increase quality.
This runs counter to the marketing efforts of the English wine industry, which has long promoted an image of high-quality production, due to high structural costs and climate marginality.
A more open approach to packaging should be welcomed, especially since the supply of important or traditional materials, such as champagne-style glass and caps, are expensive and mostly sourced from Europe at the moment.
Expanding its reach in the UK could bring cost benefits and add excitement to the wine industry at a time when it is losing younger consumers for beer and spirits, which have long enjoyed flexibility and innovation in packaging.
