English Wine Industry

Calum Kerr Excerpts

Wednesday 16th November 2016 Westminster Hall

[Tim Loughton (East Worthing and Shoreham) (Con)]

I will briefly break into this commercial break for English wine and produce to congratulate my hon. Friend the Member for Tiverton and Honiton (Neil Parish) on securing this debate on an important success story. It is already a success story.

I declare an interest as the chairman of the all-party group on wine and spirits—it is an arduous task that I am delighted to carry on my shoulders—and as someone who spent his youth working at the English Wine Centre in Sussex in the 1980s. In those days, the English wine industry was not such a quality industry. Having been rejuvenated in the 1950s by the great pioneer of English wine, Guy Salisbury-Jones at his Hambledon vineyard, English wine in the 1980s was not an easy sell. We had to invent the “Great English Wine Run”, taking English wine bottles to Paris in a reverse of the Beaujolais wine race to try to promote that rather questionable project and product, but things have completely and utterly changed. English wine is now a quality product recognised as a premium brand around the world. It is part of the great British contribution to quality food and drink. We must not underestimate it.

If I could correct my hon. Friend the Member for Solihull (Julian Knight), this is not British wine. British wine is a filthy product made of imported wine concentrates from abroad. It has nothing British about it. The correct terminology for what we are talking about is English and Welsh wine.

[Calum Kerr (Berwickshire, Roxburgh and Selkirk) (SNP)]

And Scottish?

[Tim Loughton]

There are not yet any Scottish vineyards that I am aware of—but if climate change continues, the way that the new President of the United States may wish, we may be having Château Edinburgh before the decade is out.

The success story of English wine is huge. We are now producing some 5 million bottles of English wine per year and that will at least double by 2020, to 10 million bottles, with half a dozen vineyards each producing 1 million bottles of English sparkling wine, which is now three quarters of English wine production. That is a huge growth success story, and it is not just the wine production—there is also the cottage industry and tourism aspects to it, as my hon. Friend the Member for Tiverton and Honiton said. Most of the vineyards are open to the public, have restaurants attached and have vineyard tours.

English wine is a quality product, so much so that it has now won no fewer than 175 awards in prestigious international wine competitions, constantly winning blind tastings, in particular up against some of the best French champagnes. I absolutely echo my hon. Friend’s words that we need to have protective marks. The Sussex kitemark in my area would be great progress towards that.

Alas, I do not have any vineyards in my constituency, but my constituents certainly drink a lot of wine. Around me we have vineyards such as Ridgeview and Bolney, as well as Plumpton College, which now has the only wine department in the whole of the country, where a Frenchman is teaching English students how to produce wine. My favourite local vineyard, and one of the oldest in the country, is Breaky Bottom, which is marketed as probably the best bottom in the world. That vineyard now produces a very fine product.

The Government need to take account of some points. We need to encourage investment. Setting up a winery in the UK is an expensive business, much more expensive than on the continent where they have a better climate for it. There are no real tax advantages and there is a particular tax disincentive—because of their size, most vineyards will send their grapes somewhere else to be made into wine and so they are not counted as agricultural premises. The tax treatment of the English wine production chain needs to be looked at and restrictions on planting vineyards need to be relaxed.

Only 2,000 hectares of land are under wine production in this country; there are 35,000 in the champagne region in France alone. Up to now, under the EU, we have been restricted from planting new vineyards. Those restrictions have been relaxed until 2030 but technically we are allowed to plant only an additional 1% of vineyards a year—another good reason why we are coming out of Europe as early as possible. That was a very protectionist measure from the days of wine lakes on the continent. We certainly do not have any surplus wine in the UK because it is lapped up as soon as it is produced.

We need some help on planning. We also need some help on duty. This year, wine was the only alcoholic product to receive a duty rise. Duty on wine has gone up considerably over the last 10 years. The duty per average bottle of wine was £1.33 in 2007; it is now £2.08. English wine producers have to pay tax at the same rate as continental wine producers, who can produce it much more cheaply.

I agree with all my hon. Friends’ comments, and we need to lead by example. Every embassy around the world should be serving, as the normal staple, English wine and sparkling wine. Many enlightened ambassadors do that already, and the Foreign Office should make the supply chain for that much easier. It is crazy that the House of Commons bar does not regularly serve an English wine. I hope that my hon. Friend the Member for Tiverton and Honiton and all of her hon. Friends will support a campaign to get an English guest wine in the House of Commons bars on a regular basis, as already happens with British guest beers. We should be putting our money where our mouth is in this place and supporting a fantastic quality English and Welsh product that is going to be the envy of the world. I am very proud to have been there in the early days, when it was actually not much cop—but it is now.

--- Later in debate ---

[Calum Kerr (Berwickshire, Roxburgh and Selkirk) (SNP)]

It is a pleasure to serve under your chairmanship, Sir Edward. If I may be so bold, you are the occasional ray of light on your party’s Benches among the madness. It is nice to have you in the Chair.

One of the delights of being a Scottish MP is getting to come down and have a debate about English wine. I must admit that I have enjoyed it. It has brought Members out in force. I congratulate the hon. Member for Tiverton and Honiton (Neil Parish)—I want to call him the right hon. Member; he seems like a right hon. Member because of all his work on the Environment, Food and Rural Affairs Committee. He gave an excellent introduction.

The most important thing in a debate such as this is to voice constructive ideas about how the Government can help what could be a significant and important industry. The right hon. Member for Arundel and South Downs (Nick Herbert) made an excellent contribution and raised some interesting points about tariffs—I saw a few ears prick up at that point in his speech.

The hon. Member for East Worthing and Shoreham (Tim Loughton) mentioned Scottish wine. I googled Scottish wine, which I confess I have never tried, and found a headline that said:

“Scotland’s first wine branded ‘undrinkable’ by critics”,

but that was in the Telegraph, so I would take it with a pinch of salt—the report, not the wine. He also mentioned the tourism perspective. I will go on to make a few comments about whisky and our experience with it, because I think there are lessons to be learned about taking an industry and making it global. We have found that tourism is a huge factor: as you build a brand and gain global recognition for it, you get as many, if not more, jobs through tourism as through production.

The hon. Member for North Cornwall (Scott Mann) raised an issue close to my heart: labelling. It is really important that consumers can buy with confidence. The hon. Member for Colne Valley (Jason McCartney) mentioned farm diversification, which is another particularly important subject. The hon. Member for South Thanet (Craig Mackinlay) raised some interesting points about small producers. With industries that are starting to go mainstream but are still in their early days, it is important that small producers are given as much help as possible.

When I first heard that I would have to sum up in this debate, which I was delighted about, I had hoped to be able to talk about the football and sour grapes. However, given the way that went, I will move on swiftly. Instead, I will tell Members something they may not know: claret was once the national drink of Scotland. In 1295, in an effort to fight against English expansionism, we signed what is known as the Auld Alliance with their French friends and neighbours. As part of the deal, we got access to the finest wines of Bordeaux, and so some of the oldest vaults in the UK are in Leith in Edinburgh.

Another consequence, of which hon. Members may or may not be aware, was that while we consumed the finest wines of the continent, and down here people supped on beer and mead, we started to ship the barrels back to France. We put what was then the poor man’s drink, whisky, into the barrels, and so discovered that ageing whisky changes its characteristics. We therefore developed the foundation of a global success story, which is Scotch whisky. So I thank England for indirectly helping Scotland to start on its whisky journey.

Food and drink in Scotland was worth £14 billion last year. It is the largest manufacturing sector in Scotland, employing 34,000 people, and whisky is the anchor and a huge part of that. We have been able to build on whisky and expand into other areas. Our advantage, of course, is that whisky is a product of the environment, of the water and the landscape that we live in, and it has a provenance of centuries. It has desirability.

I then considered English wine more carefully and looked at the challenges faced by that industry. One challenge is climate, which shapes the kind of grapes that can be grown, and that creates another challenge, because some of the grapes that are suited to the climate and soils of the region are in fact less desirable and less well known. That may change over time, with global warming—let us hope not—but it is a challenge. So the grape types are less fashionable or desirable, and climate is a problem, but there is also the scale of production. When I speak to the people at Villeneuve, the wine shop in Peebles that I frequent on occasion, they tell me that one of the challenges is not so much the quality, but the quantity. Anyone who wants to sell wine on a large scale needs to get the quantity up as well.

The big opportunity and success have been with sparkling wine. The three grapes that make a classic sparkling lend themselves well to the chalkier soils that we heard about and to the cooler climate. As hon. Members know, the key to sparkling is not to over-ripen the grapes, but to have a high acidity level. The climate therefore plays to advantage in that regard and so, with the chalky soil, England has a product that is winning awards, as has been said. The challenge now is for the Government to take that potential and to look at how to support and scale it.

Traditionally, the Government are reluctant to support individual industries, preferring nationwide schemes for business as a whole. There is, however, a strong case for taking something with so much potential, in particular in the current environment. The Scottish Government have led the way in many regards by taking food and drink as an entirety and looking at how to complement products. I have met food production companies with the Scotch whisky industry to look at how we can leverage the success of whisky into selling complementary products off the back of it. That is the kind of thing that we should look at.

Since 2007, the Scottish Government have collaborated extensively with the food and drink industry. The Overton report was commissioned and it produced more than 30 recommendations, which involved skills, innovation, supply chains and the whole support landscape, including the creation of a national food and drink campus in Scotland to host all the key industry and public sector bodies. That is the kind of thing we need to look at. To go off at a complete tangent, Google chooses to continue putting jobs into London not only because of the people and the skills there, but because of the ecosystem that exists in London, the complementary businesses in place. We should consider the same best practice for food and drink.

One last point to echo is the importance of geographical indication, or GI status. A lot of our existing protections are through the European Union and EU trade deals. If we consider that 90% of Scotch whisky is sold outside the UK—I am sure the aspiration of the wine trade is to be as big—it is critical for us to have protection as we do global trade deals. We must ensure that when we have a quality product and have built a brand and a reputation, it must be able to be bought with confidence not only in the UK, but the world over.