‘Years of uncertainty’ for drinks trade after Brexit (Excerpt)

 

Source: The Spirits Business

by Amy Hopkins

24th June, 2016

 

Representatives of the UK industry trade have spoken of “serious issues” that will require “urgent attention” to support producers in the wake of yesterday’s Brexit vote.

 

Results of the UK’s referendum on its membership in the European Union were revealed throughout the night and confirmed this morning (24 June), with 52% of the public voting to leave the EU and 48% voting to remain.

 

The pound has since fallen to its lowest level against the dollar in 20 years and the London stock market plunged more than 8%. David Cameron also announced his resignation as UK prime minister following his unsuccessful remain campaign.

 

Members of the international drinks industry who commented on the referendum ahead of yesterday’s vote almost unanimously urged for the UK to retain its EU membership

 

They claimed that Brexit would be a “leap in the dark” for businesses due to possible disruption of the EU single market the UK currently has access to, as well as its international trade agreements made as an EU member.

 

The Scotch Whisky Association (SWA), Wine and Spirit Trade Association (WSTA), Spirits Europe, Diageo, Chivas Brothers, and more advocated a remain vote.

 

David Frost, CEO of the SWA, issued a statement this morning urging “thoughtful and serious consideration” from the government to secure future access to EU and international export markets.

 

“The process of leaving the EU will inevitably generate significant uncertainty,” he said. “Of course, we are confident Scotch whisky will remain the pre-eminent international spirit drink.

 

“But equally, there are serious issues to resolve in areas of major importance to our industry and which require urgent attention, notably the nature of future trade arrangements with both the single market and the wider world.”

 

Impact on investment, jobs and growth

 

Meanwhile, European trade body Spirits Europe said Brexit will lead to “years of uncertainty” for the industry, not just in the UK and EU but around the world.

 

Last month, the group’s director general Paul Skehan told The Spirits Business that a leave vote would be “anathema” to spirits investment and could prompt other EU member states to hold their own referendums.

 

“We respect the British decision to leave the EU, but we also deeply regret it,” he said in a statement today. “For our sector, and many others, a strong UK within a strong EU is the scenario offering most certainty and the best prospects for growth.

 

“This decision will lead to years of uncertainty, with likely knock-on effects on investment, jobs and growth – not only within the UK and EU, but around the world.”

 

The WSTA said that it will “do everything it can to ensure that the UK’s wine and spirit industry has a powerful voice with a view to promoting the great British drinks industry’s leading position”.

 

Pub chain JD Wetherspoon was one of the few drinks industry voices to advocate a leave vote, printing 200,000 Brexit beer mats earlier this month. Today, the group’s chief executive Tim Martin issued a statement claiming the vote will “enhance freedom and security”.

 

“Some people will now be anxious, but concentrating on these immensely important factors will provide reassurance,” he said. “Anxiety about the economic effects of independence during the campaign was misplaced.

 

“The UK will thrive as an independent country, making its own laws, and we will work with our good friends and neighbours in Europe and elsewhere to ensure a positive outcome for all parties.”

 

Click through the following pages to see comments from leading voices in the international drinks industry concerning yesterday’s Brexit vote. The Spirits Business will update the feed throughout the day.

 

http://www.thespiritsbusiness.com/2016/06/years-of-uncertainty-for-drinks-trade-after-brexit/