Higher British alcohol tariffs sap exports of Spanish red wine

By Corina Pons and Charlie Devereux

MADRID (Reuters) -Spanish wine makers are concerned that exports to Britain, their main market for still wine, have fallen in value this year due to higher tariffs linked to alcohol content, and at a faster pace than those of French and Italian rivals.

A British regulation introduced in February requires that importers pay greater tariffs on wines with a higher alcohol content. That impacts Spanish wines, especially reds, which typically exceed 12.5% alcohol, which triggers a sharp hike in the levy.

Spanish winemakers said Spanish wines tend to have a higher alcohol content than those produced in other European countries as warmer weather produces a grape with more sugar. During fermentation, this results in higher alcohol content in the resulting wine.

Jose Luis Benitez, director of the Spanish Wine Federation, said Spanish red wines, popularly sold in the UK, were the "most penalised by the tax increase," adding that "the new tax system favours beers... and some sparkling wines."

Prior to the UK tariff changes, wine duties depended on liquid volume, rather than alcohol content.

Spain's wine exports to the UK in the first four months of 2025 dropped 7.5% in value to 111 million euros ($127.32 million), the Spanish Wine Interprofessional Organisation data shows, overshadowing concerns linked to U.S. tariffs.

In contrast, Spanish exports to the United States, where importer demand has risen to offset any potential U.S. tariff increase, climbed 9% to 119.6 million euros.

France and Italy saw exports to Britain fall by 6% and 6.7% respectively, and Spanish producers said the new tariffs were eroding competitiveness, already eroded by higher post-Brexit costs.

"It's putting our prices much, much higher," said Nicola Thornton, founder of wine exporting company Spanish Palate from Toro, in northwestern Spain. "The tax is definitely a conversation that's in the foreground. Everyone is asking: what's the alcohol level?"

Benitez said British importers were now paying around 20% more for the mainly red wines affected by the levy.

"It is undoubtedly affecting us ... England is a big and historic market for Spanish wines," Richi Arambarri, CEO of Rioja-based Vintae winery, told Reuters.

While importers were increasingly shifting toward lighter wines with alcohol levels between 11.5% and 12% to minimize costs, these wines face resistance from consumers.

"In the end, people like wines that have a certain body, and for that, the alcohol content is essential," Arambarri said.

($1 = 0.8718 euros)

(Reporting by Corina Pons and Charlie Devereux, editing by Andrei Khalip and Bernadette Baum)