New Wine Industry Reforms: Boosting Investment and Reducing Regulatory Burdens

The UK’s wine sector is set to experience a boost in investment, growth, and job creation thanks to new reforms announced by Food and Drink Minister Mark Spencer.

Following a comprehensive public consultation on Wine: Reforms to Retained EU Law, the government will roll out reforms starting in 2024, leveraging the opportunities that arise from the UK’s departure from the EU. These changes are facilitated by the Retained EU Law Act, which allows the government to eliminate restrictive regulations while maintaining high standards.

The wine industry has expressed that numerous existing regulations, found within a cumbersome 400-page framework, have hindered innovation and obstructed the implementation of more effective and sustainable practices.

Among the announced changes, the government will eliminate costly and burdensome packaging requirements. This includes lifting the obligatory use of foil caps and mushroom-shaped stoppers on certain sparkling wines, which aims to diminish excessive waste and reduce cost burdens for businesses. Additionally, antiquated rules governing bottle shapes will be abolished, enabling producers to utilize various bottle designs.

Another significant reform includes the removal of the requirement for imported wines to display the name of an importer on the label. While the Food Business Operator (FBO) responsible for compliance must still be indicated, this change aims to streamline trade and lower administrative challenges.

Moreover, the reforms will provide grape growers with increased flexibility to utilize hybrid grape varieties. This enhancement will allow producers to select grape types best suited to their environments, mitigate losses caused by disease or climate change, and enhance consumer choice.

Food and Drink Minister Mark Spencer stated:

Our country boasts a vibrant and diverse wine sector, yet for too long, producers and traders have been hindered by cumbersome regulations inherited from the EU.

Today’s reforms aim to eliminate outdated and restrictive rules, empowering wineries, vineyards, and traders to continue innovating and contribute to economic growth.

Miles Beale, Chief Executive of the UK’s Wine and Spirit Trade Association, remarked:

Today’s announcements from the Government are welcomed by us, as they address several issues the WSTA has advocated for over the years.

By abolishing the stringent rules on importer labelling, we can mitigate the post-Brexit challenges of requiring a unique UK label. Transitioning to a labelling system that identifies the Food Business Operator will allow for a unified label for both the UK and EU markets, preserving the UK as an attractive destination and ensuring consumers continue to have access to a diverse selection of wines globally.

Additionally, reforms to packaging regulations will positively affect businesses, the environment, and consumers alike, especially at a time when minimizing packaging waste is critical.

Ned Awty, Director and Interim CEO of Wines of Great Britain, added:

With sustainability and innovation at the core of our burgeoning domestic wine industry, WineGB supports initiatives that further these objectives.

We eagerly anticipate future legislative changes that will enable Britain’s rapidly expanding agricultural sector to flourish.

As a popular global wine trading hub, England and Wales continues to develop a burgeoning domestic winemaking industry, enjoying a remarkable 74% increase in vine hectarage over the past five years. The proposed reforms will modernize regulations, encouraging investment across all facets of the wine sector, from domestic trade to our vibrant vineyards and wineries.

The full consultation response, Wine: Reforms to Retained EU Law, is available for perusal on gov.uk.

Additional Information

Upcoming reforms will include:

• Abolishing mandatory foil wraps and mushroom stoppers for sparkling wines, reducing both packaging waste and costs for consumers.
• Elimination of outdated protectionist regulations on bottle shapes, granting producers the freedom to experiment with diverse bottle designs.
• Removing the requirement for imported wines to display a specific importer on the label, promoting smoother trade and less administrative burden, with the FBO responsible for food information still being required.
• Allowing producers to apply for protections relating to geographical indications for wines made with hybrid grape varieties, enhancing resilience against climate change and disease and diversifying consumer options.
• Abolishing the ban on blending (coupage) imported wines, as this common practice worldwide offers opportunities to broaden wine varieties and expand consumer selections.
• Permitting the production and marketing of piquette, a low-alcohol beverage made from rinsing winemaking by-products, thus offering wine producers new revenue streams and catering to the demand for lower-alcohol products.

Editorial Notes

• In 2022, the UK wine market reached over £10 billion in both off-trade and on-trade sales, drawing significant global investment into its domestic production sector.
• Recognized as a major global wine hub, the UK is the second largest wine importer worldwide by value.
• In 2022, supermarket, convenience store, and specialist off-licence sales of still, sparkling, and fortified wines accounted for approximately £7.6 billion, alongside an estimated £3.5 billion in sales through hospitality venues.
• Although the domestic winemaking industry in England and Wales is comparatively small, it is growing rapidly, gaining international acclaim for quality, with a reported 36% increase in production for 2022 and a 74% rise in vine hectarage from 2017 to 2022 (from 2,257 hectares to 3,928 hectares).