The political landscape in 2024 is shifting like tectonic plates around the world. The big question is will elections in the UK, France and USA influence fine wine buyers?
The political landscape and wine in 2024
Literally taken - politics and wine really shouldn’t mix! A clear head is certainly required this week as the UK votes in its government for the next five years. So too in France, where Marine Le Pen is challenging Macron’s hold on power, and the Biden / Trump road show in the US is on the move, albeit change may well be afoot in that campaign. In terms of political change, 2024 is a landmark year with three of the leading Western democracies, and economies, undergoing national elections.
Political Oenophiles
Leading politicians of the past have been known to be passionate fine wine collectors and helped develop trade for certain wines in their countries through the link with their profiles as wine connoisseurs.
Winston Churchill was a great appreciator of French fine wine and his passion for Champagne was legendary. A famous Churchillian quip on his favourite tipple is “Champagne is the wine of civilisation and the oil of government”. Churchill’s particular love of Pol Roger started in 1908, and this endorsement was recognised by the Grand Marque when they named its famous cuvee after him in 1975.
Thomas Jefferson is probably the US president best known for his love of fine wine and is considered to be America’s first wine connoisseur. During his time as US ambassador to France in 1784, he visited the great wine estates of the country and northern Italy. He became a keen collector of Burgundy, Bordeaux, Rhone and Champagne wines. Records show his purchases of Lafite Rothschild, Margaux, Yquem and Branne-Mouton, Mouton Rothschild's predecessor.
Extremely rare Jefferson bottles have been auctioned over the years. A famous case grabbing global headlines involved billionaire collector, William Koch and a single 75cl bottle of Chateau Lafite Rothschild 1787. The bottle achieved a record-breaking US$156,450 sale in 1985, partly due to the Jefferson connection.
In more modern times famous politicians renowned for their wine collections include Ronald Reagan (1981 – 89) who reportedly had Lafite Rothschild and Haut Brion from the lauded 1947 vintage in his cellar. Joe Biden has continued to sponsor American wines being served at White House special occasions. Donald Trump, now running for a second term, is apparently teetotal and claims to “never have drunk alcohol in his life”.
Meanwhile, in the home of most of the world’s legendary wines, President Emmanuel Macron is recognised as being the most knowledgeable modern French political leader about fine wine. In the 2022 French election, his quote “A meal without wine is a bit sad” apparently helped land 58% of the vote to defeat Marine Le Pen. In 2024, activism has been on the rise and impacted the French wine industry as growers become increasingly frustrated with surplus supply. Right-wing politics is on the rise and Marine Le Pen is tipped to defeat Macron in the forth-coming second vote this weekend.
Wine, politics and tax
Not unsurprisingly, the political focus on wine in the 21st Century is often centred on Tax and what Duty can be leveraged to top up the nation’s coffers. Or indeed, where goodwill maybe generated both within the business sector and with voters. Interestingly, a past poll is reported to have discovered that wine drinkers are more likely to actually vote!
Tax has been brandished as a divisive tool during the UK 2024 election campaign. Prime Minister Sunak, who is teetotal, has made it his mantra to remind the UK voters of the potential increase in tax they may pay under a new Labour government. However, Sunak added to the Duty charged on alcohol as Chancellor and, as PM, has overseen the introduction of a Post-Brexit wine tax, due to come into play in February 2025.
The new tax, referred to in the press as Sunak’s “Sauvignon Surcharge” and seen as a ‘stealth tax’, is linked to alcohol strength. The wine trade and even a former Tory leader, Sir Iain Duncan Smith, have expressed concerns, describing it as complex to execute and that it will add costs to the system to administer. This is as tax levels may change as alcohol levels change in maturing wine.
We, the consumer, will see higher prices charged and a likely shrink in choice. The UK drinks industry, led by the Wine & Spirit Trade Association, is appealing to Sir Keir Starmer to drop the tax, should he come into power.
What happens next?
On the 5th of July 2024, if the pollsters are right, we will see a change of power and new residents in Number 10.
To quote Churchill on Champagne;
“In success you deserve it, and in defeat you need it.”
So, whatever the result, it’s likely that Champagne will be poured on Friday. As for Sir Keir and his team, following the Champers - perhaps an excellent glass of red?