London’s esteemed wine merchant, Philglas & Swiggot, has announced its impending closure due to "increasingly challenging trading conditions and the additional complexities of Brexit." The business, a fixture in the UK’s independent wine scene since 1991, is set to shutter its doors permanently on March 16.
Founded by Mike and Karen Rogers in Battersea, Philglas & Swiggot expanded over the years, opening new locations in Marylebone and Richmond, and gaining a reputation for its fine wine selections, particularly from Italy, Australia, California, and South Africa. However, after nearly 34 years of operations, recent events have proved too difficult to manage.
The implementation of a new complex duty system by the UK government, which taxes wine based on its alcohol by volume (abv), has drastically altered the landscape for wine retailers. This new system entails a significant administrative burden, requiring that merchants closely monitor the abv of over 2,000 different wines they sell. Additionally, increases in duty rates – which have seen taxes on red wine rise substantially in the past 18 months – have compelled retailers to pass these costs onto consumers, further heightening wine prices amid a cost-of-living crisis.
The pandemic, while challenging, had seen Philglas & Swiggot invest in renovations and a revamped delivery system, but the combination of the new duty regulations and a decline in consumer purchasing has led to the conclusion that the business can no longer remain viable.
The team expressed its gratitude for the support from London’s wine lovers over the years, noting that they have been honored to serve the community through various channels from retail to private client services. Unfortunately, they now find themselves facing a harsh trading environment that is likely to impact other retailers as well.
For additional context on the challenges facing the wine industry, one can explore related topics such as the increasing alcohol duty implications and the landscape of current wine consumption habits amidst inflation.