Things are looking up for 2017!
I hope the headline has drawn you in, thinking this is some very positive news about the wine business for 2017. Sorry to disappoint you, however, when I say up I mean prices. Yes that dreaded conversation we’re all going to have in the New Year about price increases.
The effects of sterling’s post-referendum collapse against currencies such as the euro, US and Aussie dollar are sending shock waves throughout the industry. On the mainland some suppliers have already passed on increases pre-Christmas; something unheard of in this industry. This just proves how difficult it is to absorb the currency losses within their own margins.
On a lighter note, ‘I had to take back 100 raisins to a shop yesterday and they exchanged them for 200 sultanas; I couldn’t believe the currant exchange rate’.
That was a distraction for the next bit, yes, there are prices increases coming your way.
It’s an unavoidable consequence as a result of the fall in sterling. At the time of writing, sterling was trading at €1.11 against the euro, compared with €1.27 six months ago and €1.42 on the 30th November 2015; that’s a 22% fall on last year.
Over the same period against the US dollar, its value has fallen from $1.43 to $1.22 today and it was $1.51 on 25th November 2015; that’s a 20% fall since last year.
And the one most people forget about is the Aussie dollar which was $1.98 pre-Brexit, $1.58 today and $2.08 on 25th November 2015; that’s a whopping 24% fall since last year.
Well Ciaran have you any good news this month I hear you say. Yes, lots of good news, we are enjoying some beautiful autumnal weather, the quality of wine from all over the world is improving and it’s nearly Christmas so stock up before the prices increase.
Try some of my favourite winter warmers with your Christmas Fayre.
Quote of the month:
“Only the first bottle is expensive.”
Old French Proverb
For more information on the fabulous products available at United Wine Merchants please call 02838 316555, or check online at www.unitedwines.co.uk
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