UK has oversupply of home grown grapes
Trade body WineGB report that the English and Welsh vineyard area has increased to more than 3,928ha and this year saw another record harvest along with last year's record of 12 million bottles. But it seems there is an oversupply of grapes, with sales falling from 9.3 million bottles in 2021 to 8 million bottles in 2022. With 800 vineyards but only 200 wineries, the oversupply has nowhere to go.
Some commentators claim Brexit is causing problems. While the UK was in the EU, growers could apply for funding for as much as 40% of the investment for winery capacity and tourism facilities. Since Brexit, the government has not replaced these handouts with anywhere near the generosity of the the EU. Henry Sugden, CEO of contract winemaking company Defined Wine, in Kent said 'I would not have been able to create Defined Wine without EU rural funds'.
Post-Brexit, industry players say rural funds have been replaced inadequately. Grants and interest-free loans are available, but much more difficult to obtain, according to Huw Jarvis, a rural fund coordinator at Kent County Council, who says grants are more fragmented, less direct, with eligibility uncertain.