Brexit Impact On Beverage Alcohol Prices in BC
June 24, 2016 § Leave a comment
Wow! I don’t know about you but I was surprised and quite disappointed that the UK has voted last night to leave the European Union. There are lots of arguments on both sides but my disappointment lies in the inevitable increases in the prices of wine, beer, spirits and ciders; and yes I include locally produced products as well.
To put you at ease I don’t suspect that price increases will be see until the fall, but you can expect anywhere from a 5% to 10% increase on the shelf. It is not that the cost brewing or making wine has gone up, it is because the Canadian Dollar has dropped in value in relation to the Euro and the US Dollar meaning that our money doesn’t go as far.
It wasn’t that long ago that prices took a big increase when the price of a barrel of oil dropped, now Brexit will add to that pain.
Not only will that great buy at $10 become $11, but the selection with drop. Once a bottle of wine goes over $20 there is a 40% drop in its volume and that usually means an eventual #vinexit or #vexit from the market.
My advice is to find your favourite bottle and start buying up.