Wine manufacturers are making weaker drinks in a bid to keep prices down in advance of a tax rise.
Australian Vintage, which produces the McGuigan brand, has already cut the alcohol by volume (ABV) in some products ahead of the increased levy coming into force on Aug 1.
A bottle of wine at 12.5 per cent ABV will cost the consumer an additional 44 pence per bottle in August compared to the current price, a 20 per cent increase.
Producers are having to wrestle with the dilemma of charging more for their products, or lowering alcohol content in order to maintain the same pricing.
Experts are now urging the Government to ditch the proposed tax change which was announced in March by Jeremy Hunt, the Chancellor.
The Treasury froze tax rises on pub-sold beer in a boost to landlords, and also cut tax on British sparkling wine. However, it increased the duty by 10 per cent for cans of beer, leading to brands such as Fosters slashing the ABV of their cans and bottles.
Vodka and gin will see a 10 per cent increase in alcohol duty, while it will rise by 20 per cent for wine and 44 per cent for port and sherry.
These increases are pre-VAT, which will take the Government’s total price rises for the consumer above a pound for most drinks sold in shops.
Industry figures have accused the Treasury of imposing the biggest jump in alcohol duty in half a century, which they say will pile more misery on the public during an ongoing cost of living crisis and spiralling inflation.
“It’s not too late to scrap these crippling duty hikes,” said Mike Beale, the chief executive of the Wine and Spirit Trade Association.
“Ultimately, the Government’s new duty regime discriminates against premium spirits and wine more than other products.”
He added that it is not a simple process to reduce a wine’s alcohol content as it is a delicate artform, not merely an industrial process that can be tinkered with.
Grapes in hotter countries, such as Australia, are more likely to be hit hard by the tax as the climate leads to more ethanol being produced by the grapes in vineyards.
Australian Vintage is reportedly altering its Black Label Chardonnay from 12.5 per cent to 11 per cent to take the August tax fee from £2.67 a bottle to £2.35 per unit.
A bottle of pinot grigio will now be 11 per cent opposed to 11.5 per cent, saving 32 pence, and a shiraz is also dropping to 11 per cent from 12.5 per cent, the Mail On Sunday reports.