Mid-alcohol category emerging

In 2023, changes to the tax code for alcohol duties brought significant tax advantages to wines below 8.5% abv, and resulted in a new category of wines emerging in the UK.

Now, LWC, the UK’s top independent drinks wholesaler, has partnered with South Africa’s Overhex Wines to debut Kamina, a lower-alcohol wine range crafted for the upcoming February 2025 duty increases, featuring 8% abv Sauvignon Blanc, Rosé and Merlot.

Meanwhile, the McGuigan Mid range of mid-strength wines at 7% abv, was launched in September 2023 and is now available in the UK.

To preserve flavour and structure, the Kamina wines undergo full de-alcoholization before being blended back with the original wine, offering a lower-price option without sacrificing quality. Shaun Healy, wine director at LWC, highlighted the launch as a response to growing consumer demand for moderation and affordability amid rising living costs.

In the UK, duty varies based on the alcohol level. The rate of duty multiplied by the alcohol levels gives the duty. But wines below 8.5% abv have a much lower duty rate, so for example, going from an 8.4% abv wine to 8.5% abv, the duty jumps from £1.37/bottle to £1.88. However, both are considerably lower than the £2.67 duty for a wine at 13% abv.

Wine (inc. Sparkling Wine), Spirits or Spirits Based Products, Other fermented products like fruit ciders

Alcohol by Volume (ABV) Amount of duty in £ (pounds) for
each litre of pure alcohol in the product:
0% to 1.2% £0.00
1.3% to 3.4% £9.27
3.5% to 8.4% £24.77
8.5% to 22% £28.50
Stronger than 22% £31.64