People outside my industry have been asking why the strong reaction to the dead cat story of pint bottles. It’s not really about the pint bottles it’s about the continuous effects of government interference and Brexit.
Brexit was in their own words “removing unwanted red tape and having seamless trade on a global basis” sounds great and something many voted for (on an advisory basis you understand).
The reality is very different. People get confused with a Free Trade agreement and Barriers to trade. Whilst we have an FTA with the EU the governments deal with the EU is so bad that all the barriers to trade are directly responsible for UK inflation and cause endless problems.
But what about the wine trade, well it’s an important part of the UK economy. Wine is the most consumed alcoholic drink with over 1,700,000,000 bottles consumed per year in the UK. Thats 6 bottles every second of every day.
Moreover at 6 bottles every second that means the government is earning £16.08 per second from the wine industry. Or an hourly rate of £964.80. Plus VAT of course!!! So you would think the government would want to look after this goose, and make it easy for the importers?
Well no, the last three years of Brexit in terms of importation have been a nightmare due to self inflicted government fuckwittery. Let’s have a little recap of all the shitty things they have done to increase paperwork and red tape. The inverse as voted for.
To maintain status quo, still be able to move stock and then sell it of course without the broker cartels you need to have the following licences now.
Port Badges just RORO (£1000 PA), GBWK, GBRC, CDS/CHIEF Access (£250 per month), Derferment Account, Vat Reg, UK EMCS, Account with Hauliers that can access GVMS, AWRS, organic certificates and import approval, WOWGR for non wine products, & of course staff to run this.
So that’s just to stand still, quite a list. But was the government satisfied with this, no why not change and complicate things further, so firstly we had Vi1 circus, which after 9 months of pretty fierce lobbying even the government worked out is was a bad idea & scrapped it.
Then we’ve had @RishiSunak terrible Alcohol Reform excise plans. So dreadful that they were opposed in the HOC & they haven’t fully implemented them yet, it’s made the excise system so complicated that in the over 15.5% alc level Port & Sherry sector has collapsed effectively.
Then we have the organic laws of importation again something they know is bad laws so keep pushing back the date of implementation. Next we have the importer labelling fiasco where England made its mind up on the 18th December with a live date of tomorrow.
Wales and Scotland and NI still have not decided what to do as this comes down to regional governments to decide…
So once again technically the UK will be breaking world trade organisation rules with trade within the UK Union. We have DRS waiting in the wings but this is so toxic nobody wants to open that can of worms again especially in Scotland.
Then in the summer we had the largest excise increase in 50 years which not only changed buying habits for good it totally changed how many individual wines performed because the increase was so large. This messed up forecast flows for everyone.
So for this government to announce that it cares about the wine trade and it wants more choice with a bottle format nobody asked for and isn’t produced anywhere is quite something.
Even the research the government did into this came back with an approval rating of 1.8%. In other words 98.2% told government it was a shit idea. But there doing it anyway.
So as said the reaction about pint bottles for the wine trade is a case of straw camel back. This government is so seriously out of touch and so desperate to find anything to make Brexit look good they come up with pint bottles. They’re just embarrassing for the country.
Finally I have personally spoken to to the head of buying of a number of big companies in the UK since this news came out. None of these people will be buying or even asking their suppliers for pints bottles. Behind the scenes they are just as frustrated with government as I am.
The truth is this government continues to do nothing good to help the wine trade, the wine industry would normally be supporting a Tory government, but these days I can confirm I don’t know many that still do. Quite the opposite in fact.
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Ok folks I am being asked about this and so like me cut to the chase, it’s absolute bollocks. Why people can’t use their brain is beyond me. Let’s take a step back and think about the supply side.
Currently winery’s around the globe all use 75cl bottles, yes every single wine producing nation on the planet is running with 75cl bottles, that’s literally billions of bottles. Even the UK!
So why does an out of touch (corrupt and incompetent) government think that the wine producers around the world who have zero need to change bottles size would do that, let alone and all the costs involved.
Here is a little bit of Xmas Brexit bollocks for all the Gammon loving Tories. The government has managed to screw the wine importers of the UK again. It’s like they don’t want you to drink wine made from filthy grapes grown abroad! There latest bit of fuckwittery as follows
As of January 1st 2024 all wine arriving on the market must support the company name of whoever brought it to the UK market. If it’s made in the UK /bottled in the UK it must show who made the product & where it was bottled . So far so good. Thats covers 0.09% of wine in the UK.
Now if the wine is from the other 99.1% of wine consumed in the UK it must have the importer details but you can’t use the word “importer” just in case the wine is re-exported to the EU. Sounds silly but this did use to be the 6th largest agricultural export until Brexit.
Following on from my thread earlier in the week & the fact the headline is bollocks, I then had a webinar with our trade body to understand the full details of this new legislation. I must say I was surprised that further barriers to trade are being imposed. So more UK red tape.
Just as a recap the headline is clear the UKIP Tories claim they have reduced EU red due to Brexit for my industry. This is a lie. The facts are clear Brexit has caused and continues to cause new UK born red tape or ad the industry calls them Barriers to Trade.
Since Brexit my suppliers and I (because it’s a supply chain) now have to have the following accreditations to maintain status quo from the pre-Brexit era.
So the Tories have posted this frankly pathetic advertisement. So here are the facts and why what they are claiming is utter bollocks, but it’s fair to say the ukip Tory party has form for making shit up. In fact there pretty good and making stuff up.
Here is what the Tories have changed in terms of wine production, importation and exportation since June 23rd 2016.
1) Firstly we must remember that the UK only makes 12M bottles of wine per year which is the same figure for daily consumption. So in anyone’s book what is being talked about on production is so small its almost irrelevant in global terms.
This past week has proven to me just how desperate & pathetic the UK government has got. The Excise duty increase and the way it is charged came into force on Tuesday at midnight. It’s been a challenging week if you import, and government has been lying at every opportunity.
I warned over two years ago when the new system was proposed that it was unworkable, @GavinQuinney put the most fabulous factual data thread together 3 weeks ago with all the stats you could wish for on how costs were increasing.
But how did it pan out? Well we constantly import wine from all over the world as you might expect. Before the increase we did our normal pre-advise CDS declarations for goods that were in transit from Spain and France and due to arrive this week just gone.
Why the new trade deal with CPTPP shows us all that Brexit was about tax Evasion, racism, and outside influences. Cast your mind back to the advisory referendum. The result never included the UK Eu voters all 1.1m of them.
But that OK it’s was an advisory referendum, non binding yet the government continually referred to it as the “ will of the people” in reality it’s the will of 1/3 of the UK voting public globally, and the other 2/3 can shut up, very democratic.
Then all the promises about how what will happen and hasn’t and what will not happen and it and has. None of which has benefited anyone in the UK endless your hedging against sterling, or have off shore funds, then you have done very well indeed.