Wine & Spirits · Demand Forecasting
Best Demand Forecasting Software for UK Wine Importers
Since 1 February 2025 every still wine in the UK has been taxed on its exact labelled strength, ending the easement that taxed 11.5% to 14.5% wines at a single rate. On 1 February 2026 all alcohol duty rates rose a further 3.66%, taking the still wine rate to £30.62 per litre of pure alcohol. With Australian shipments to the UK down 6% in volume in the year to June 2026, UK importers are planning a smaller market in which each SKU carries its own duty. Forecasting has to work at that level too.
Key Challenges
- Duty now differs by labelled strength, so a 12% and a 14.5% wine from the same supplier carry duty that differs by more than 50p a bottle before VAT, and a forecast that groups them misstates both margin and shelf price.
- The 1 February 2026 uprating added roughly 10p to 12p of duty per 75cl bottle of still wine before VAT, on top of the 2025 shift, so entry-price lines have absorbed two increases in two years.
- Australian wine shipments to the UK fell 6% in volume to 192 million litres in the year to June 2026, and the UK still takes the largest volume of any Australian export market, so many importer books are already shrinking.
- UK distribution runs through importers, agents, merchants and multiple retailers, so stock sits in several places and forecast errors build up in bond before they show at the shelf.
Industry Data
| Still wine, 75cl bottle | Duty from 1 Feb 2025 | Duty from 1 Feb 2026 |
|---|---|---|
| 12.0% ABV | £2.66 | £2.76 |
| 13.5% ABV | £2.99 | £3.10 |
| 14.5% ABV | £3.21 | £3.33 |
Source: Calculated from HMRC still wine rates (8.5% to under 22% ABV): £30.62 per litre of pure alcohol from 1 February 2026, and the equivalent pre-uprating rate (£30.62 divided by 1.0366). Before VAT; small producer relief and draught relief excluded. (2026)
On this page
UK wine duty has changed twice in two years, and the two changes do different things to a forecast. On 1 February 2025 the wine easement ended and every still wine began to be taxed on its exact labelled strength. On 1 February 2026 every duty rate rose by 3.66%, taking still wine to £30.62 per litre of pure alcohol. The first change reshaped the range. The second raised its floor.
For importers, that turns demand planning into an SKU-level exercise in which duty, channel and stock position all matter. This guide covers what changed, what it does to shipment-based forecasts, what to look for in forecasting software, and where Vintaflow fits.
What the duty changes actually did
From August 2023 to January 2025 the easement taxed every still wine between 11.5% and 14.5% ABV as if it were 12.5%. The WSTA estimated those wines at 85% of the UK market. When the easement ended in February 2025, stronger wines took the biggest step: the WSTA put the duty increase on a 14.5% red at 54p a bottle, about 80p with VAT.
The February 2026 uprating was smaller per bottle but landed on every line. At £30.62 per litre of pure alcohol, a 75cl bottle of 12% wine carries about £2.76 in duty, 13.5% about £3.10 and 14.5% about £3.33, before VAT. That is 10p to 12p more than the year before.
Price elasticity at UK retail is not theoretical. The WSTA reported that HMRC alcohol receipts fell £209 million in the first nine months of the 2024 to 2025 financial year compared with the year before, as volume fell faster than rates rose.
Why shipment-history forecasts break under strength-based duty
A traditional importer forecast extrapolates trailing twelve-month shipments and assumes the cost structure underneath them is stable. Under strength-based duty that assumption fails in three ways.
- Every SKU has its own cost base. A 12% Bordeaux and a 14% Rioja at the same shelf price now carry duty about 45p apart, so one absorbs a rate rise more easily than the other. Grouping them in one forecast line blends two different demand responses.
- Stock sits across several tiers. Importer bond, agents, merchants and multiple retailers each hold inventory, and an error builds up in bond before it shows on the shelf.
- Some origins were already shrinking. Australian shipments to the UK fell 6% in volume to 192 million litres in the year to June 2026, and only 3% in value, which says commodity lines are being cut harder than premium ones.
In that environment, last year plus a percentage is not just imprecise. It hides where the volume is actually going.
If you want to test your own range against this, book a 30-minute conversation through the Vintaflow contact page.
A worked example: same shelf price, different economics
Take two red wines that both sit on a multiple's shelf at £9.99. Strip out VAT at 20% and each bottle has about £8.33 to cover duty, the retailer's margin, distribution, the importer's margin and the wine itself.
- The 12.0% wine carries about £2.76 in duty, leaving roughly £5.57 for everything else.
- The 14.5% wine carries about £3.33, leaving roughly £5.00.
That is about 10% less money in the chain for the stronger wine at the same price. When the next uprating arrives, the stronger wine is the one whose price moves first, or whose margin disappears if the price holds. In a forecast, those two SKUs should not share a line, a promotion assumption or a price elasticity.
The pattern repeats across a typical importer range. Warm-climate reds and fuller-bodied, high-alcohol whites sit at the top of the duty scale; lighter whites, many rosés and lower-alcohol wines sit at the bottom. A portfolio review that sorts SKUs by labelled strength and price point, rather than by country or supplier, usually shows where the next year's volume risk sits.
Planning around the duty calendar
UK duty rates have been uprated on 1 February in both 2025 and 2026, with the rate set at the Budget beforehand. That gives importers a predictable planning point, and three habits follow from it:
- Model the next uprating before it is announced. Use a plausible range, such as the last two RPI rates, and see which SKUs cross a retail price point.
- Watch duty-paid cover going into February. Stock cleared from bond before a rise and sold after it protects margin only if it sells at the planned rate; slow lines simply carry the cost for longer.
- Separate the price effect from the trend. Compare the same weeks year on year and by channel, so a one-off step in January and February is not read as a permanent change in demand.
What good demand forecasting looks like for a UK importer
The strongest UK importer forecasts share four traits:
- SKU and channel resolution. On-trade and off-trade respond differently to a duty rise. The off-trade passes it to the shelf quickly; the on-trade absorbs more of it at premium price points and reacts later.
- Depletion, not only shipments. Sell-through from merchants and multiples shows the demand response weeks before the next purchase order does.
- Stock by location. Bonded and duty-paid stock at the importer, plus positions at key agents and merchants, tied to the same plan so overstock is visible before markdowns start.
- Origin exposure. A book weighted to Australia or other southern-hemisphere origins starts from a different trend than one anchored in Europe.
What to look for in software
- Forecasts at SKU, market and channel level, not brand level.
- The ability to bring in depletion and stock reports from partners in the formats they already produce.
- Dashboards that show inventory and sales performance by account and by warehouse.
- A clear boundary on duty: the software should use your duty and landed-cost figures, not guess at them.
Where Vintaflow fits
Vintaflow forecasts demand using seasonality, trends and historical performance. It provides account-level performance and inventory dashboards and reports supplier and customer inventory and sales performance, so an importer can see which accounts and SKUs are slowing after a duty change and which are holding.
Vintaflow does not calculate excise duty, landed cost or pricing. Those stay with the importer's commercial and finance systems, and the importer decides how a duty change should alter pricing, purchasing and promotion. No ERP replacement is required.
Three moves for the next quarter
1. Recompute landed cost at labelled strength for every SKU. This shows which lines lost the most margin across the two changes and where shelf prices are most exposed.
2. Compare depletion before and after 1 February 2026 by SKU and channel. The weeks either side of the change show the price response more clearly than any annual summary.
3. Set a stock-cover threshold that triggers a reforecast. When duty-paid cover on a SKU passes six to eight weeks, review the forecast before the next replenishment rather than reordering on trailing velocity.
To walk through the data you already hold for your UK portfolio, book a conversation with Vintaflow.
How Vintaflow helps
Demand Forecasting and Analytics
Vintaflow forecasts demand using seasonality, trends and historical performance, provides account-level performance and inventory dashboards, and reports supplier and customer inventory and sales performance. Duty, landed cost and pricing come from the importer's own commercial and finance systems; Vintaflow does not calculate them. No ERP replacement is required.
Talk through this challenge Prefer to send a message?Frequently Asked Questions
- What changed in UK wine duty in 2025 and 2026?
- Two separate changes a year apart. On 1 February 2025 the temporary wine easement ended. It had taxed still wines between 11.5% and 14.5% ABV, which the WSTA put at 85% of the UK market, as if they were 12.5%; since then every wine is taxed on its exact labelled strength. On 1 February 2026 all alcohol duty rates rose by 3.66% in line with RPI, taking the still wine rate to £30.62 per litre of pure alcohol.
- How much duty is on a bottle of wine in the UK in 2026?
- At £30.62 per litre of pure alcohol, a 75cl bottle of 12% still wine carries about £2.76 in duty, a 13.5% bottle about £3.10 and a 14.5% bottle about £3.33, before VAT at 20%. The same bottles carried about £2.66, £2.99 and £3.21 between February 2025 and January 2026.
- Why does strength-based duty matter for demand forecasting?
- Because it gives every SKU its own cost base. Two wines at the same shelf price can now carry different duty, so they hold margin differently when the rate rises and respond differently to promotion. A forecast that groups them will misread which lines are losing volume because of price and which because of demand.
- How should a UK importer reforecast for 2026?
- Recalculate landed cost for every SKU at its labelled strength, then compare depletion by SKU and channel before and after 1 February 2026 to see where the increase changed volume. Entry-price off-trade lines usually respond first. Adjust the shipment plan so duty-paid stock does not build in SKUs that are slowing.
- Does Vintaflow calculate UK excise duty?
- No. Vintaflow forecasts demand using seasonality, trends and historical performance and provides account-level performance and inventory dashboards. Excise, landed cost and pricing stay in the importer's commercial and finance systems.
Related
Sources
- Alcohol Duty uprating (HM Revenue and Customs policy paper) (accessed 2026-09-25)
- WSTA warns UK consumers to brace themselves for escalating prices as a double whammy tax grab is on the horizon (2025-01-29)
- Australian wine exports decline in line with global wine consumption (Export Report June 2026) (2026-07-29)
Last updated: September 25, 2026