Vinarchy UK hit with £8million EPR tax

The UK arm of Vinarchy, the company formed when Accolade merged with Pernod Ricard Winemakers, would have turned a profit last year were it not for the Extended Producer Responsibility (EPR) levy, its accounts show.

The Extended Producer Responsibility (EPR) tax for packaging, which came into force on 1 January 2025, has been causing “chaos” among drinks producers and companies, including hundreds of companies mistakenly charged multiple times due to glitches in the system.

Applying to all forms of packaging including aluminium, plastic, cardboard, wood and glass, the EPR levy impacts all UK-based businesses with an annual turnover of at least £1 million and that handle more than 25 tonnes of packaging per year. The tax was brought in with the aim of shifting the financial burden of packaging from taxpayers onto manufacturers.

Now, the accounts of one of the world’s biggest wine companies has revealed just how deeply businesses are having to reach into their pockets to meet EPR bills, with Vinarchy UK having been taxed at least £8m for EPR in 2025. That figure could be set to climb further still, as Vinarchy’s UK’s financial year runs to 30 June.

“Significant investments”

The drinks business reached out to Vinarchy regading the EPR bill and received the following reply from CEO Danny Celoni: “The FY25 UK accounts largely reflect the historical performance of the legacy Accolade Wines business prior to the merger with Pernod Ricard Winemakers.”

He claimed that Vinarchy is now “stronger as a combined business” and asserted that the company “is delivering in line with profit expectations and showing improvement in all underlying financial metrics.”

Furthermore, Celoni added, Vinarchy is “confident in our go‑forward growth strategy, with a number of significant brand, capability and capacity investments currently rolling out.”

Plan of action

Vinarchy’s revenues fell by almost £40 million last year, dropping to £422 million from £461 million the previous year, although pre-tax losses slimmed from £103 million to £6.4 million. The higher losses for the previous year were largely due to one-off charges and writedowns. Earnings before interest, tax, amortisation and depreciation (EBITDA) were down nearly 9% year-on-year.

However, Vinarchy has already outlined a plan of action to keep it out of the red.

In November 2025, db reported that Vinarchy was planning to axe 60 wine brands (around 40% of its portfolio) in a bid to focus on younger consumers. At the time, Celoni said the company planned to focus its efforts on Hardys, Jacob’s Creek and Campo Viejo, the three brands with the most global recognition.

And he has been true to his word, with Jacob’s Creek returning to UK shelves on 6 April 2026, backed by a major 360-degree campaign promoting lighter, fresher wine styles, updated packaging and four SKUs — Juicy & Smooth Red; Refreshing & Lively Rosé; Zesty & Fresh Sauvignon Blanc; and Vibrant & Fruity White.

EPR Vs Trump tariffs

Vinarchy’s tax woes follow Chilean wine firm Concha y Toro stating that EPR was having “as much impact economically” as the US tariffs implemented by President Trump. Others described the flawed scheme as being “like an April Fool’s joke”, warning that the EPR policy will inflate costs, fail to improve recycling rates, and put businesses under increasing financial strain as well as resulting in higher wine prices for consumers.

The Cut My Tax organisation, which campaigns for “lower taxes and a more democratic economy” and has more than 18,000 followers on X, took to the social media platform to share its disappointment with EPR, posting: “The so-called Extended Producer Responsibility (EPR) levy is another stupid tax thought up under the Tories & implemented with enthusiasm by Labour. Its main effect is to increase costs for consumers & weaken firms affected by it.”

Vinarchy UK hit with £8million EPR tax

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