As we enter August the #Brexit effect is now showing, in my industry at least, the permanent issues that we have to deal with. Here is my updated thread for my business in the wine industry. 1/25
It’s fair to say that Brexit has delivered very few positive outcomes to the wine trade, needless to say there are many more negatives which we now manage to the best of our abilities. 2/25
On the positive side, the end of the grey market and overseas online retailer has effectively ceased in U.K. because taxes and shipping has made the practice unsustainable verses regular U.K. retailers. 3/25
Secondly as you may have heard the government have backed down on Vi1s not just for the EU ( which were due to start in Jan 22) but they removed the non EU version too. That is good news. 4/25
There is no doubt in my mind that this was partly due to these threads on Twitter & getting the issue out to the wider public. So big thanks to all of you for helping us get this u-turn from Government. 5/25
On the negative side logistics to the U.K. have never been so dire in the 29 years I have been trading, and the delays for stock coming over from the EU show zero signs of improving. 6/25
Just to be clear, pre-Brexit I could expect stock collected on day 1 in Austria, Italy or Spain to be arriving in my warehouse in South Wales on day 3-5. Post Brexit days have become weeks, and the implications are huge. 7/25
Adding these lead times to shipping means firstly my company is forced to hold much higher stock levels to maintain our high service levels. This of course has a cost. 8/25
Secondly actual logistics is now at a premium as many EU operbators frankly can’t be arsed with the U.K., moreover with less frequency delays are inevitable. 9/25
Then of course we have the mine field of paperwork which continues to evolve. The two big issues here seems to be the exit port number and the EX1 document. Both have given my suppliers nightmares. 10/25
What I can confirm is that logistic companies across the EU have now got to the point with wine that until the paperwork is correct it simply doesn’t move at all. Moreover I understand why they are doing this. 11/25
So whilst we are getting stock from the EU its more expensive, takes considerably more time and you have to spend an excessive amount of time to get all in the supply chain to ensure paperwork is correct. 12/25
Moreover each EU country has a different protocol for paperwork clearance. The easiest is France and most difficult is Italy. Then Spain, Austria, Portugal are somewhere in the middle. 13/25
Looking forward we still have two issues to tackle with the Government. The first is Organics and the second is back labelling. Like Vi1 these two issues have yet to be introduced. 14/25
For organics it’s once again beyond the realms of stupidity what is being proposed for wine as Vi1 were. But yet again the Government are being lax in their understanding of the issue. 15/25
Organic wines in much of the world are produced under very rigorous controls as you might expect. All of the controls especially in the EU are policed tightly. This is so the consumer has faith in the organic symbol. 16/25
So ALL organic wine has undergone all the checks required when it’s produced locally at the vineyard. Once it’s bottled nothing further can happen to it. This is very simple to understand (you would think). 17/25
Under the Brexit plan all importers of organic wines have to register with one of the organic bodies in the U.K. to gain certification as an organic importer. To become certified you have to meet their requirements. 18/25
So as ever wanting to be ahead of the crowd we applied some 4 months ago. The cost should have been £1500 PA but we offered a reduction as we don’t actually make/ grow anything. 19/25
Part of the inspection is to ensure that organic wines don’t come into contact with non organic wines. That’s right folks I have to make sure the bottles of wine don’t interact with each other. You just can’t make this stuff up. 20/25
Secondly its required (TBC) that organic wines as well additional paperwork (cost) we’ll need to ship separately from non organic wines. Again to avoid contamination apparently. 21/25
But when it comes to the retailer who will actually sell the product to the consumers there is no requirement for any controls. Which I have to say does make the rest of the system a complete waste of time. So that is due Jan 2022. 22/25
Then in September 2022 all imports of wine must have the importer details on the back label for traceability. Personally I don’t have problem with this, but it does add 7p approx to the cost of the product to have it applied. 23/25
So to conclude the #teething problems the government talked about back in January have become permanent fixtures, costs continue to increase, and still the Brexit deniers want to pretend this what they voted for. 24/25
Just imagine what’s happens when HMRC start checking goods coming in the U.K from the EU ! 25/25.
I just wanted to add this to my thread so that you can all see for yourself the slow decline even post Brexit. Below is tracking info from Feb & now. Same products and producer with the same logistics company. It’s getting worse not better. The three images below prove it.
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Ok I can see this HGV driver shortage is now grabbing all the headlines. Of course I advised on this about a month ago with @SarahOnTheNews on BBC Wales. So what really going on?
The fact is this driver shortage is totally avoidable and is directly coming from Government not letting FOM for EU drivers in the UK, because there not ‘skilled’. So they they have gone.
Moreover they don’t want to come to the UK, well can’t really blame them after making them all sit on a runaway for 5 days before Xmas.
A few weeks ago we sent our first export via our own customs declaration process. We thought we should try as we had everything in place since January but had not actually used the system. Wow we were wrong and its another level of utter crap.
So we have got just about imports sorted and have every type of import on a template now. That taken the best part of six months and still the system doesn’t run smoothly, and there is an issue with nearly every import. However exports…
So after doing our first import we got a P9 notice last week. This was to advise the export has not been cleared off the Chief system. Fair enough we thought. We shall clear it down. But this where the games start.
What makes us the best importers of wine in Wales? The simply answer is the wines we sell. But it’s not me saying this, it’s a host of professional tasters. Here is a thread of reviews from the talented Tamlyn Currin as she tastes our wines for JancisRobinson.com
Here is my thread updating the ongoing circus of Vi1. As you may recall this is a document with absolutely no purpose and will add a further barrier (& cost) to trade to EU #wines if introduced. The industry wants them removed permanently & immediately for all wines. 1/15
Since the middle of 2019 the trade has been calling out the nonsense that is vi1 and demanding that first they are not introduced for EU wines but also scrapped for ROW wines where this form IS already used. 2/15
As part of the FTA the was agreed on Xmas Eve 2020 Vi1’s were kicked down the road until July 2021. Along with the new rules for organic wines requiring additional paperwork and certifications . 3/15
Once again this evening I got asked why the UK doesn’t stop buying wine from the EU and replace that with ROW wines. So please understand the follow facts and your understand the answer.
1) The uk consumes 12M bottles per day, but the the UK produces 12M bottles per year, of which most of this is expensive sparkling wine. 2) currently 66% of this daily volume comes from the EU the rest is from ROW.
3) ROW are mostly at production capacity and sell most of there volume annually. So to change the demographics would be challenging and requires global cooperation.
January this year I posted a thread which outlined the issues my company was facing just 15 days into Brexit & the truly negative effects that were being realised. Now over 5 months later have things improved? 1/19
Now we have a better understanding of what Brexit really means to our business, our suppliers globally & the logistic issues. None of it is easy & none of it has been fun to deal with. It’s actually been the most difficult 5 months of my career. 2/19
The first major hurdle is getting the entire supply chain to work as one. For decades producers, shippers, importers and retailers all knew their place in the cycle which was seamless. That is now not the case & the chain is fragmented at best. 3/19