Last month’s vote by the UK to leave the European Union has given the drinks industry a “rude awakening”, according to Rabobank, with short-term volatility benefiting some and hindering others, while longer term effects on trade barriers are set to weigh in.

In a note published today, Rabobank considered the impact of Brexit on beverage companies, warning that the scale of change brought about by the decision “will have critical implications for the sector”. The Netherlands-based financial service provider noted, however, that risk mitigation is possible, while “new, attractive opportunities” will open up in the future.

Discover B2B Marketing That Performs

Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.

Find out more

“The Brexit has been a rude awakening for the beverage industry in the UK and abroad,” Rabobank said in the note. “There will be winners and losers in the industry.”

For just-drinks’ full coverage of the UK’s intention to leave the EU, click here

The firm also warned that Brexit would have “critical implications” for the wine trade. The EU is the largest supplier of wine to the UK. “Assuming the soft British Pound reduces demand for wine imports, those wines will need to find new markets,” Rabobank said. Elsewhere, while Scotch whisky could make short-term gains with exports, suppliers remain concerned about the loss of free trade agreements.

Looking forward, the company suggested “hedging, pipeline loading or shifting marketing focus” in the short term, with “deterioration … likely” for trade between the UK and the EU.

“Changing the value chain by shifting sourcing or relocating activities, either organically or through M&A, may help to mitigate the adverse consequences,” Rabobank concluded.

GlobalData Strategic Intelligence

US Tariffs are shifting - will you react or anticipate?

Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.

By GlobalData

Just Drinks Excellence Awards - The Benefits of Entering

Gain the recognition you deserve! The Just Drinks Excellence Awards celebrate innovation, leadership, and impact. By entering, you showcase your achievements, elevate your industry profile, and position yourself among top leaders driving beverage industry advancements. Don’t miss your chance to stand out—submit your entry today!

Nominate Now