Thread by @pmdfoster

🚨🚨🚨🇪🇺🇬🇧🍾🍾🍾🍾🇬🇧🇪🇺🚨🚨🚨NEW: English sparkling wine (aka ‘Brexit Juice’, as some called) producers feeling the #brexit pinch — transport, labelling and customs issues adding frustration and costs. Want govt to do more to help. /1

on.ft.com/3aJcpU6

No need to labour the point these days, but the biggest issue is still groupage -- smaller exporters struggling to get freight companies to take single or double pallets. They'd prefer to run back to EU empty than risk hassle of being stopped, per @Wine_GB /2

@Wine_GB The industry accepts that Brexit means Brexit but wants the govt to do more to help, says @wstauk boss @WSTA_Miles lowering excise duty rates, making it easier to import equipment by getting rid of tariffs and consolidating more tariff codes /3

@Wine_GB @wstauk @WSTA_Miles The industry is booming on the back of a planting spree these last five years - nearly 6m vines which should see production leap from 10m+ bottles now to around 25m by end of decade (that's about same as UK champagne consumption today) /4

@Wine_GB @wstauk @WSTA_Miles The industry wants to grow UK markets obviously -- but at £30-£40 a bottle it's competing at a high price point, not with Prosecco often, which @SimonwmThorpe tells me sells 130m bottles year in UK.

But ultimately exports need to play a role, and #Brexit is hampering/5

@Wine_GB @wstauk @WSTA_Miles @SimonwmThorpe The Nordics are a key target - Norway takes 20pc of 500,000 bottles exported -- so Sweden and Denmark are potential growth markets, as well as Asia that groups through EU often.

But Brexit is piling on costs... /6

winegb.co.uk/trade/industry…

@Wine_GB @wstauk @WSTA_Miles @SimonwmThorpe The industry says these are about 32p/bottle on customs etc, but about £1 for new slip labels which have to be in indivual country languages etc. Multiply these up through distro chains and they say cost is £4-5+ on retail, £8-£10 on restaurant.../7

@Wine_GB @wstauk @WSTA_Miles @SimonwmThorpe All of this is friction/inhibiting factor in export plans rather than exisential but which per @Wine_GB boss @SimonwmThorpe ..."has to be resolved if we’re going to be able to fulfil our export potential” /8

@Wine_GB @wstauk @WSTA_Miles @SimonwmThorpe The other thing on the horizon is VI-1s forms which industry figures like @DanielLambert29 are campaigning to get dropped....these will add another chunk of costs getting wines tested -- expensive given small batches of English fizz trade /9

@Wine_GB @wstauk @WSTA_Miles @SimonwmThorpe @DanielLambert29 Time will tell whether, as the TCA comes into full operation post-ratification this week (we presume) these kinds of issues can be sorted/reduce...or if both sides cling to frictions...to make their respective points. 10/ENDS