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How to Get into the UK Market Without Brexit Being a Problem

13/10/2019

What you need to do to prepare your wine business for a no-deal Brexit

By : Anna

 

Unless a Brexit deal is approved by the British Parliament or another extension to the UK's EU membership is agreed, or the government decides to cancel Brexit - then according to the law, the United Kingdom will leave the European Union without a deal on October 31, 2019. 

Boris Johnson, the new British Prime Minister is set to take the UK out of the EU this autumn, without a deal if necessary, or so he says.

With Brexit going through, a lot of things are bound to change - especially the trade format and agreements between the UK and the EU. A ‘no-deal’ Brexit would mean that the legal arrangements that have been set in place would cease to apply as they used to. It would also bring a notable change between the EU and UK trade spectrum.

However, the new trade agreement and format that will eventually be put in place for the UK will have close to no effect on consumers drinking their favourite wine, enjoying an ice cold pint, or lazing around with their favourite cocktail.

“If anything, it’s made people drink more. I think any kind of circumstances about stuff happening around the world makes people drink more because if they’re happy, they drink and

if they’re sad they drink. So no matter what everyone says when there are financial difficulties people don’t go out as much and I’m like yeah but they still drink so whether they’re buying it from a shop or buying it from a restaurant, the spending goes up”  said Daniel Kong Fisher, Senior Bartender at Mark’s Club, London - when asked about his opinions on Brexit.

So in short, people are still going to be drinking no matter what. They’re still going to want their favourite French wine on the dinner table, or their Russian vodka to sip as they binge watch a netflix show.

  • Wine consumption in the UK

Being the sixth largest wine market across the globe and the second largest trader in wine by volume, the UK is at the heart of the global wine industry.

According to stats, the UK consumes around 15 million hectolitres of wine.

Stats By Statista

Image Source: Statista

This measurement by Statista demonstrates the sum (volume) of wine discharged for utilization in the United Kingdom (UK) from 2002 to 2015. In 2002, roughly 13.2 million hectolitres of wine were cleared in the UK, which has ascended to 15.2 million hectolitres in 2016.

According to stats -  wine, beer, and spirits, drinkers in the UK are only going to keep increasing. With the market increasing over time, the UK is the prime place to enter with your beverage brand.

  • Where is Brexit going to take the alcohol import-export industry

If you’re an American beverage brand, then you don’t need to worry about what will happen post-Brexit. US officials said that a deal between the UK and US would ensure no disruption to wine and spirits trade after the UK leaves the European Union.  The deal was signed in Washington DC by the US chief agricultural negotiator, Gregg Doud and UK’s US ambassador Kim Darroch.

There’s a similar agreement that has been cracked between the UK and Chile - where a no-deal Brexit will not be a reason for imports and exports to take a back seat.

Currently, no tariffs have been decided within the UK-Chile deal, but imports and exports are definitely not going to be an issue.

Regarding other EU countries, trade agreements are still yet to be struck. However, there’s no way that the trade can be stopped as the majority of the UK’s wine is imported from countries across the EU. Things might slow down during the first fleet, but things will eventually calm down and trade will be open once again.

The following countries and associations have made deals with the UK for instances following Brexit

Yes, import and export tariffs are bound to increase, but as a producer, you need to understand that as tariffs increase - you can use it to leverage it to increase the price of your wine, beer, or liquor.

Entering the UK market might seem tough after and during the Brexit progression, but here’s what you can do to prepare your brand for a no deal Brexit.

  • Here’s what you need to do to prepare your brand for a no-deal Brexit

To continue exporting and importing in and out of the UK, you must

  • Get a UK Economic Operator Registration and Identification Number (EORI)

  • Decide if you want to hire an import-export agent - which would be a little more expensive, but much more beneficial as the chances of your products getting stuck in customs and creating issues would be less likely to happen.

  • Talk to the organisation and agency that moves your products to see what they can do to help you.


Get your wines assessed by top level UK industry experts at the 3rd edition of the London Wine Competition - and find your place in the UK market. Register your wines here