One of the leading industry experts tell Despell how the loving wine can be the only category that will actually benefit from customs duties changes next month.
The cancellation of customs easement on February 1 is a major reason for the concern of many beverage companies. Producers are discovering how to accommodate additional costs, as some DB wine factories spoke that they may have no choice but to withdraw from the UK market completely.
However, according to Richard Lloyd, the former administrative director of the UK -based Glass Playing and Package Company, one category may end to actually benefit from changes.
He says that the wine comes with one main feature: ABV flexibility within the country of sale.
In other words, the fact that it has now become legal to amend the ABV for wine in the market may eventually lead to the incredibly service of the bulk sector in the face of the high costs of customs duties.
Flourishing
One of the ways in which brands can reduce the effect of fees costs is of course lowering alcohol content in their products, since the fees are calculated on the ABV basis. As DP stated, a number of major brands have already begun to reduce alcohol in their drinks. For example, Hardys Stamp Shiraz Cabernet has reduced ABV quietly from 13.5% to 11.5% last year.
There are many chrome cultivation methods that wine farmers can use to relieve alcohol levels in generosity before converting grapes into wine. Other roads can still be deployed in the wine factory to lower ABV before the wine enters the bottle. But not everyone realizes that ABV does not necessarily reduce it at the production point.
“With the removal of the European Union laws by reforming wine after Britain's exit from the European Union in 2024, it is now legal ABV to wine in the United Kingdom,” Lloyd asserts in an exclusive interview.
“Therefore, wine producers do not have to enter this complexity and the special cost in their wine factories, which serve many different countries, but instead they can simply adjust the wine at the UK's packing point.”
Advanced technology
While many wine companies around the world have alcohol removal technology installed in their wine factories, their use requires the use of “multiple storage tanks, because all ABV needs a separate tank of its own,” explains Lloyd.
This inevitably leads to the emergence of challenges related to space, storage, costs, etc. So the brands may miss a trick by not choosing to reduce the ABV value for its wine in the sales market.
The beneficiaries are two parts.
First, international producers who want to sell their wine in the United Kingdom can struggle to do so due to the costs of exorbitant fees to maintain their presence and maintain low costs by filling out bottles and lowering ABV in the market as needed.
Second, wholesale wine companies in the UK can use alcohol removal technology to take advantage of the expected rise in demand after lifting customs duties next month.
According to thewe, the advanced technology for alcohol removal is already present and ready for use in “two independent companies in the United Kingdom”, and it will be wise to invest more bulk goods operators in capabilities as there may be a rush close to the producers. Those wishing to lower ABV in the market.
“As far as I know, there are currently no alcohol removal units owned by trademark companies, which is a lost opportunity,” he says.
Operation and accurate
If the producers choose to walk on the way to get rid of alcohol, it shouldn't be everything or nothing. According to Alwid, who spent 13 years of work for the Australian wine company, ACCOLAEDE, producers have the option to reduce ABV modestly, instead of completely eliminating alcohol.
“The great thing in alcohol removal technique is that it can be used to reduce ABV from wine so that the fees can be managed by every increase in ABV fee by 0.5 %, which is equivalent to about 0.11 pounds £ 0.5 %.” Despell says. “Or, if it is preferred, alcohol can be removed from the entire wine.”
Although the “vast majority” wine in the UK on the shelves ranges between 11.5% and 14.5% of ABV, a large part of the wine sector can reap the benefits of ABV.
This technology can also help deal with ABV differences that occur naturally between old species, which helps ensure a more consistent product from year to year.
The final challenge is the effect of lowering alcohol content on wine flavor, but “technology progresses”, says Lloyd, “and the effect of taste decreases all the time.”
He believes that alcohol disposal technology can be an area worth investing, and that the British companies that they jump now will be at the forefront of the movement with the improvement of science.
Farther
As an expert in the meager operations, Lloyd spent 20 years working closely with producers to maintain the quality of their products while traveling from distant areas such as Australia, New Zealand, Chile and Argentina, to ensure that they reach the final consumer in an excellent condition. His in -depth knowledge of the UK supply chain and working to achieve a real change in the industry, from closer trading to the achievement of carbon -free glass to educating the next generation of MWS about the wine science, gives it a unique perspective on the future of drinks.
He is currently seeking new opportunities to help drink drinks to maximize their shows in a variable consumer scene, and Lloyd believes it is more important than ever thinking outside the box.
“With the decrease in wine sales worldwide over the past decade, the last thing that wine companies in the United Kingdom needed was a new, exhausting graphic mechanism from an administrative and punitive point of view,” he says.
However, with the new flexibility to fix wine and the ability to control ABV and other aspects, it is an opportunity to rethink wine.
“Now it is not the time to make the industry to cling to our old beliefs. Doing this may lead us to miss new ideas and opportunities for growth.
Related news
James DavisMW is changing from Bolney Wine Estate in service, glow in English and future opportunities
Witros: The high alcohol fee “changes the scene” for BWS
Fees Changes: “Sharp wine will bear the full cost”
