Spanish wine exports to the UK fell 7.5% in value during the first four months of 2025, following the introduction of new British tariffs based on alcohol content. Spanish red wines – which typically exceed 12.5% ABV – have been the most affected.
A UK regulation introduced in February has overhauled the country’s alcohol duty system, linking the levy to the strength of the beverage. Wines with an ABV over 12.5% now incur significantly higher charges – a shift that disproportionately affects Spanish red wines, due to the naturally higher sugar content of grapes grown in warmer climates. Reuters originally reported yesterday, 25 June.
“Spanish red wines, popularly sold in the UK, were the most penalised by the tax increase,” Jose Luis Benitez, director of the Spanish Wine Federation told Reuters. “The new tax system favours beers… and some sparkling wines,” he added.
Under the previous UK duty rules, wine was taxed based on liquid volume rather than alcohol content.
According to data from the Spanish Wine Interprofessional Organisation, the UK remains the top market for Spanish still wine, but exports have fallen in value to €111 million (US$127.32m) so far this year. The drop has outpaced declines seen by France and Italy, whose exports to Britain slid by 6% and 6.7% respectively.
Rising costs, shrinking margins
Spanish producers argue the UK tariff overhaul is compounding pressure already felt from post-Brexit costs. Benitez noted that importers are now paying around 20% more for the mainly red wines subject to the increased levy.
“It’s putting our prices much, much higher,” said Nicola Thornton, founder of Toro-based wine exporter Spanish Palate. “The tax is definitely a conversation that’s in the foreground. Everyone is asking: what’s the alcohol level?”
Richi Arambarri, CEO of Rioja winery Vintae, said: “It is undoubtedly affecting us… England is a big and historic market for Spanish wines.”
Lighter wines, reluctant consumers
In response, some importers are shifting focus toward lighter wines, with alcohol levels between 11.5% and 12%, to stay below the higher tariff threshold. However, producers warn that consumer preference may not follow suit.
“In the end, people like wines that have a certain body, and for that, the alcohol content is essential,” said Arambarri.
By contrast, Spanish wine exports to the United States rose 9% to €119.6 million in the same period, driven by importer demand amid concerns over potential US tariff hikes.
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