Britain’s wine industry seeks government support to protect growth

Britain’s wine industry is asking the government for targeted support as producers try to keep pace with European competitors while managing slower sales, rising costs and labor shortages.

WineGB, the trade body for the sector, said the industry has expanded quickly but now needs policy changes to turn that growth into a more stable business model. Speaking at the Fruit Focus event in East Malling, Nicola Bates, WineGB’s chief executive, said the group wants stronger legal protection for British-grown grapes, better access to grants for wineries and equipment, and a new tax break for wine sold directly to visitors at vineyards and wineries.

The request comes as Britain’s wine sector has grown into a larger part of the country’s farm diversification and drinks economy. The country now has more than 1,100 vineyards, about 280 wineries and 4,800 productive hectares under vine, according to WineGB. Sparkling wine has been a major driver of that rise. Sales climbed from 2.2 million bottles in 2018 to 6.2 million bottles in recent years, and about 90% of exports are sparkling wine.

Even with that growth, Bates said producers are under pressure from climate volatility, investment needs and a shortage of skilled workers. The sector employs about 3,300 full-time workers and depends on around 10,000 seasonal workers each year. By 2040, she said, the industry could need 30,000 employees.

WineGB represents about 500 members covering roughly 70% of Britain’s vineyard acreage. The group says the structure of the industry makes it especially sensitive to policy changes because many businesses remain small. About two-thirds of producers make fewer than 10,000 bottles a year, leaving family-run vineyards and microbusinesses at the center of domestic production.

One of WineGB’s main demands is tighter protection over the use of the term British wine. The organization wants only wine made from grapes grown in Britain to be allowed to carry that description. It is also seeking action against imported wine that is processed in Britain into products described as similar to Prosecco, arguing that such products can compete with domestic bottles for shelf space and confuse consumers.

The group’s second request focuses on investment support. Bates said wineries should have better access to grants for presses, winery facilities and other equipment, as well as support for marketing, research, development and education. She framed that proposal as an effort to give British producers access to tools already available in countries such as France and Spain.

That issue matters beyond vineyards alone because it affects how producers finance expansion and how competitive domestic bottles can be against imported wines in stores and restaurants. For smaller wineries in particular, access to grants can shape whether they invest in production capacity, tourism facilities or brand development at a time when margins are tight.

WineGB’s third proposal is a wine tourism relief that would remove duty on wine sold directly to visitors at vineyards and wineries up to a limit of 50,000 bottles. Bates said many small producers rely heavily on those direct sales. According to her estimate, microbusinesses often sell about 60% or 70% of their output through cellar-door channels.

WineGB estimates that such a measure would deliver about £6 million a year in targeted support to the industry. Bates said the goal would not be lower retail prices but allowing businesses to keep more cash for reinvestment, hiring and expansion.

That proposal could have wider implications for the beverage sector because direct-to-consumer sales are often one of the few higher-margin channels available to small producers. If adopted, duty relief on cellar-door sales could strengthen winery tourism revenue, support capital spending and improve competitiveness against imported products sold through traditional retail channels.

The push for support also reflects a demand challenge at home. Bates said many consumers still hold outdated views of English and Welsh wine or have never tried it. She argued that domestic producers still need to persuade more British wine drinkers to choose local bottles and help build stronger export demand abroad.

Restaurants and bars remain important because they are often where consumers first taste domestic wines before deciding to buy a bottle later. But economic pressure has reduced visits to those venues, making it harder for producers to win new customers through on-premise exposure. Bates said retailers are carrying more English and Welsh wines than before, but more work is needed so shoppers understand the category.

Tourism has become one of the sector’s strongest assets. WineGB says British vineyards already attract around 1.5 million visitors. That traffic gives producers another route to sales at a time when hospitality spending is under strain and supermarket competition remains intense.

Sustainability is also becoming more central to how British wine is marketed at home and abroad. WineGB said 43% of UK vineyard hectares have now been approved under the Sustainable Wines of Great Britain Certification Scheme. That figure points to an industry trying to build its reputation not only on quality but also on environmental standards that matter increasingly to retailers, export buyers and visitors.

For growers and producers, the message from WineGB is that rapid expansion alone will not secure the future of British wine. The group says policy support now will determine whether a sector built largely by small businesses can keep investing, protect its identity in the market and compete more effectively with established European rivals.