Wine lovers could soon be paying up to £1 more for their favourite bottle of red in the latest blow to cash-strapped consumers. Majestic Wine yesterday said that it would be forced to raise some of its prices after poor grape harvests and pressure from the strong euro.

Tim How, the chief executive, gave warning that this could cost as much as 50p or even £1 a bottle in some cases.

The blow comes amid ever increasing pressure on wallets as petrol prices soar, records for the burgeoning crude oil price and energy companies prepare to raise gas bills.

Analysts believe supermarkets could have to pass on further price increases in the coming months on some products such as bread. The average bottle price at Majestic increased marginally to £5.93 from £5.73 in 2006.

The retailer insisted yesterday that it was “cautiously optimistic” about the coming year despite the prospects of tighter consumer spending.

The group, which sells wine in cases of 12 bottles from 141 warehouses, said it hoped to pick up business from customers who cut down on going out to pubs, clubs and restaurants.

Mr How said: “There will be more at home drinking as people tighten their belts and decide not to eat out.”

A trading update yesterday showed that over the nine weeks to December 31, like-for-like sales rose by only 1.2 per cent after a poor November.

In the five weeks to December 31, like-for-like sales rose 4.1 per cent, fuelled by strong demand for champagne and sparking wine. The sale of fine wines - bottles priced at £20 or more – also rose by 30 per cent.

Mr How said: “Probably the most exciting area of growth through last year and at Christmas was from New Zealand, just a tremendous enthusiasm for New Zealand whites, New Zealand Sauvignon. We have got a lot of really interested consumers who are willing to try new wines, and therefore tastes will change.”

Shares in the group rose by 1½p to 270½p.

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive