News

Brexit solutions are available for drinks industry - Rabobank

Most popular

Stoli Group’s AC/DC Thunderstruck Tequila- Comment

As Irish whiskey comes of age, so do its problems

Interview - Mark Sandys, Diageo's head of beer

Why water has become more important than wine

MORE

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.

"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.


Related Content

The potential impact of Brexit by drinks category - Focus

The potential impact of Brexit by drinks category - Focus...

The just-drinks Brexit survey, three months on – Analysis

The just-drinks Brexit survey, three months on – Analysis...

UK cider makers urge caution over Brexit fallout

UK cider makers urge caution over Brexit fallout...

How to Brexit-proof your beverage company - Focus

How to Brexit-proof your beverage company - Focus...

Oops! This article is copy protected.

Why can’t I copy the text on this page?

The ability to copy articles is specially reserved for people who are part of a group membership.

How do I become a group member?

To find out how you and your team can copy and share articles and save money as part of a group membership call Sean Clinton on
+44 (0)1527 573 736 or complete this form..



Forgot your password?