Brexit: Prices hikes and freezes abound as stalwarts review prices

By Jo Gilbert

Published: 19 October, 2016

With the price of consumer favourites such as Marmite, chocolate and cheese set to rise, the drinks trade is having to make tough choices on how to cope with the devaluation of the pound.

Earlier this week, Naked Wines MD Rowan Gormley said his company has been forced to put up prices by 5% on half of its range from next month.

In an email to its regular customers, the Majestic Wines-owned company said: "The cost of wine has gone up. Back in the good 'ole days of early 2016, we lowered our prices when exchange rates were in our favour. Since then the pound has steadily plummeted and duty has gone up (again), meaning the cost of wine has crept up."

Meanwhile, on-trade wines supplier Jascots has announced it will be freezing its prices until the end of the year.

The decision was taken to counteract "widespread uncertainty" in the midst of Brexit aftermath, although they haven't ruled out price increases in the new year.

"With the important Christmas period approaching, we've made the decision to freeze our prices until the end of the calendar year. We hope that by doing this, we'll enable our clients to take full advantage of the business opportunities over the coming months," managing partner Miles MacInnes said.

"Only when we have both the latest harvest information and foreign exchange rate, will we issue any price revisions."

Naked Wines and Jascots aren't alone in having to amend their pricing strategies following the impact of Brexit on the pound and foreign exchange rates.

Bibendum recently announced it plans to increase prices in less than a month's time.

Last week, Vivino MD Andrew Lundy told Harpers that he had put off price increases as long as possible.

However, the indie merchant, which has five stores in Scotland, is now preparing to put up prices by the end of the month.

Since the referendum, the pound has plummeted compared to other major global currencies.

There has been a 9% increase in the price of the Euro against the pound and a 14% increase in the price of the US dollar.

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