Ahh...Nothing goes better with Valentines Day dinner that a toast of champagne or Prosecco. Well that glass may be a bit more costly on this day, next year. The UK's Wine and Spirit Association has recently been pushing a raise of 5 percent on all champagne and Prosecco sales in the following year. They have been citing inflation and a weaker pound as the primary reasons for the rise in cost. When compared in this article to the same bottle of Prosecco being drank in France, you can slowly start to see why they are paying a much heftier fee for the glass full of stars. With an industry that provides the UK with over 270,000 jobs, many civilians are urging the prime minister to add the wine and spirits division into his upcoming budget Since the Brexit, all imported alcohols and wines have seen a rise in cost and are steadily rising every month. With the industry seeing a 1 percent rise in cost last month, there is only one thing for wholesalers and wine lovers to do...bottoms up.
http://www.independent.co.uk/news/business/news/brexit-latest-news-prosecco-champagne-wine-prices-rise-2017-higher-inflation-weak-pound-sterling-a7578971.html
I find it interesting that BREXIT has caused a rise in an import that is basically across the water. It has always been an import from France since the UK is an island. BREXIT has had some strange results as a result. My question is this, was BREXIT the result of the increase or was the increase because the pound went down to BREXIT?
ReplyDeleteI am confused on how BREXIT had an impact on the import. Could you clarify some of the mechanics of the scenario?
ReplyDeleteSimply the lowered value of the pound, Eric, can impact the ability for Brits to pay for goods. This added to the rising overall cost in the products influences everything 'downstream' including the consumers.
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