Spanish red wine, 12.5% volume. Credits: Brett Jordan, Pexel
Spanish winemakers are warning of the export crisis after the UK’s new alcohol-based wine tax introduced in February 2025.
According to Reuters Data, citations Spanish wine professional organizationin the first four months of 2025, the value of Spain’s wine exports to the UK fell to 111 million euros, surpassing the decline from France (-6%) and Italy (-6.7%).
The new UK tax target aims for a high percentage of wine
The UK’s updated customs system taxes wine based on alcohol strength rather than liquid volume. As a result, the Spanish Reds, known for their higher alcohol content due to warmer growth conditions, said they are “now most punished by tax cuts.” Spanish Wine Federationquote Mallorca Daily Britain.
Benitez has focused on the system’s “beer-loving…and some sparkling wines,” further narrowing Spain’s export competitiveness in the post-Brexit market, resulting in an increase in documents and costs.
British importers must pay more classic Spanish reds for wines with more than 12.5% alcohol. These tax increases have led to higher retail prices and damaging years of trade relations.
Spanish wine exporters say they are losing ground in the UK due to pressure to set new pricing. “It makes our prices much higher,” said Nicola Thornton, founder of the Spanish export company. Spain’s palate. “Tax is definitely a conversation in the foreground. Everyone is asking: What is your alcohol level?”
UK buyers reportedly pay around 20% for many full-bodied reds. This has sparked a move by some importers towards lighter wines (11.5-12% ABV).
The US market is stepping in
Although UK sales fell, Spanish wine exports to the US increased by 9% over the same period, driven by strong importer demand and fear of future US tariffs. But experts say this may not be enough to offset the UK’s decline.
This change in UK tax policy could have global implications. As climate change continues to raise sugar levels in grapes, alcohol content could potentially face more regulatory-inducing hurdles in warmer regions like Spain over the next few years.
Should the country’s climate and traditions be taxed on obedience? Or should wine tariffs reflect more than just a proportion of alcohol?
View all business news.
