Rotkäppchen-Mumm warns of impact from proposed sparkling wine tax hike

Rotkäppchen-Mumm, Germany’s market leader in sparkling wine, is warning against a planned increase in the sparkling wine tax. Silvia Wiesner, head of the company, has expressed concerns that the tax hike would be “socially unjust,” arguing that it disproportionately affects middle-class consumers rather than those who can afford luxury champagne.

Wiesner noted that a 20 percent tax increase could result in a price rise of approximately 20 cents per bottle plus VAT. She highlighted that over 80 percent of the volume typically consumed in Germany is priced below 3.50 euros, a threshold she believes consumers may be unwilling to exceed during difficult economic times.

The company is currently engaging in intensive discussions with political decision-makers to ensure the decision is based on a complete set of facts. Wiesner warned that higher consumer prices could lead to lower sales volumes, which might ultimately result in a decline in total tax revenue. The German Bundestag is expected to discuss the 2027 budget in early September, which may include these planned tax increases on alcoholic beverages.