That’s good news for bulk retailer Majestic Wine Warehouse, which saw increased revenues from sales of champagne and white wine. After a slump in November, Majestic came out 4.1 per cent ahead in like-for-like sales for December.
It may be a little too early for a congratulatory toast, however, as the company could encounter difficulties in the year ahead as poor grape-growing weather in Australia, France and Italy threatens supplies. A weak pound against the euro is likely to make imports more expensive.
A hike in wine duty is expected in the Budget this spring, which could add to the pressure to raise prices. The company reported in November that the average bottle price of still wine purchased from Majestic was £5.85, up from £5.66 the previous year, and the average spend per transaction had increased to £128 from £121.