WSTA warns that economic recovery is not ‘assured’

The WSTA has warned that there are “uncertain times” to come, and although huge gains have been made, economic recovery is by no means assured.

Speaking on the opening day at the London Wine Fair, WSTA chief executive Miles Beales said that the “promised sunny uplands post-Brexit were still a way off.

“It is more about resilience and survival,” he said.

Beale noted that while the drinks sector is “an industry that’s built on tradition” it had none-the-less shown itself to “have legs” describing its vibrancy and resilience, proving itself to be fleet of foot in its accelerated shift towards online retailing or adjusting to a new trading environment, new procedures and new paperwork, post-Brexit.

He pointed out that a year on from the reopening of the hospitality trade, things were returning to normal, with “resilience giving way to recovery”.

“This time last year, the hospitality sector was only just beginning to open up again. And one year on, there are signs that sales are beginning to return to pre-Covid levels, with a more familiar balance between on and off-trade,” he said, noting the potential boost of the Queen’s Platinum Jubilee, a summer free of restrictions and the Fifa world cup in November.

However, he noted that it would be a “tough autumn and winter”.

“We do have a lot to celebrate and we can celebrate that resilience and successes, but uncertain times lie ahead,” he pointed out.

He also highlighted the importance of presenting a united voice from the industry, pointed to the success of persuading government – particularly Defra – to get rid of the V1I forms and not including glass in the deposit return scheme, as well as the resolution of the punitive tariffs on whisky.

“Let me be brutally frank, more than ever we need government to listen to because recovery is not a given,” he said.

Threats on the horizon

Beale highlighted three main potential threats on the horizon – the increase of duty, changes to labelling that are due to come into force in September and differing recycling schemes across the nations of the UK.

The  proposals to revised the excise duty regime on wine will place a huge burden on UK producers, importers, retailers and ultimately the UK consumers as well, Beale warned. “Under the Johnson’s proposal duty will increase by 70% of all wine except to increase the duty for 95% of all red wine and 100% of fortified wines. It will tie the hands of importers and retailers in red tape,” he said.

“And the wine trade recovery could be very short lived,” he said. “We need to show resistance but coordinated resistance.”

Following Beale’s introduction, WSTA’s regulatory and commercial affairs director David Richardson outlined the results from research conducted by the WSTA among its members and the lessons learned about moving goods in and out of the EU following Brexit, warning producers that need to plan ahead to avoid delays at the border.