FDBusiness.com

Brexit and Alcohol Bill Create Huge Challenge For Irish Drinks Sector

 Breaking News
  • Irish Supermarkets Benefit From the Christmas Spirit The latest grocery market share figures from Kantar Worldpanel in Ireland, for the 12 weeks ending 31 December 2017, reveal that shoppers spent an extra €90 million on groceries over the festive period. David Berry, director at Kantar Worldpanel, comments: “Over the Christmas period the average household spent a record €1,532 on groceries – an increase of [...]...
  • Britvic Continues to Put Health at the Heart of its New Sustainable Business Programme Britvic has launched ‘A Healthier Everyday’, its new sustainable business programme which builds on its commitment to: help consumers make healthier choices; support the well-being of communities; and minimise its impact on the planet. The creation of ‘A Healthier Everyday’ follows a review by the company into how it can ensure that its sustainability programme is [...]...
  • Bayn Europe Sets Up Chinese Subsidiary For Sugar Reduction Bayn Europe AB has signed a joint venture agreement with real estate development company HuaHe International Asset Management to introduce sugar reduction to the China market. Both partners agreed on a co-operation model and mutual commitments for the set up of joint venture. Bayn will hold 65% of equity and HuaHe will hold 35%. Further to [...]...
  • Ishida X-ray Flexibility Ensures Premium Product Quality Ishida X-ray inspection technology is helping to maintain the premium quality reputation of one of Russia’s most popular traditional snack brands. The ‘ROSTRAGROEXPORT’ company was founded by Mr Boris Aleksandrov in 1995, who spotted a niche in the Russian food market for a good quality traditional curd snack.  Its ‘B.Y. Aleksandrov’ brand, named after the company’s [...]...
  • ‘Latte Levy’ – Coffee Drinkers Want to Go Green, But Price is a Barrier As the UK Government aims to eliminate avoidable waste with the announcement of its 25-Year Environmental Plan, Mintel research reveals that Britain’s coffee shop drinkers are happy to do their bit for the environment, but not at any cost. 40% of out of home hot drinks consumers wouldn’t mind paying extra for drinks served in 100% [...]...

Brexit and Alcohol Bill Create Huge Challenge For Irish Drinks Sector

Brexit and Alcohol Bill Create Huge Challenge For Irish Drinks Sector
January 24
09:00 2017

An economic study has found that the combination of a hard Brexit and the Public Health Alcohol Bill (PHAB) will create the perfect storm for the drinks sector, which is the powerhouse of the Irish Agri-Food and Drinks industry. The Alcohol Beverage Federation of Ireland (ABFI), which represents brewers, distillers, brand owners and distributors is calling on the Government to put in place a series of policy measures to mitigate against the risks of Brexit and reduce the unintended consequences of some of the policy measures contained in the PHAB.

The economic impact study was commissioned by ABFI, sets out a series of detailed recommendations and policy measures for the Government to introduce to protect the industry from the combined threat of Brexit and the Public Health Alcohol Bill. The sector is an economic success story with beverage exports of €1.4 billion to 139 markets in 2015  as well as supporting over  200,000 jobs in the wider drinks and  hospitality sector. With an annual wage bill of over €4 billion, it is a hugely important part of the Irish Food and Drinks sector.

The UK is Ireland’s biggest export market for food and drink with exports of €4.5bn in 2015. The result of the UK Brexit vote and subsequent sterling devaluation has led to a surge in cross border shopping, increased prices of Irish products and has increased the cost of Ireland as a tourist destination.

Economist Ciaran Fitzgerald.

ABFI is calling on the Government to introduce a range of policy measures in the medium term to enable the sector to offset the risks posed by Brexit and the PHAB. The Government should:

  • Cut excise duty. Ireland has the most expensive alcohol in the EU which penalises consumers, impacts tourism and negatively impacts the sector’s economic contribution.
  • Reintroduce the ban on below cost selling to disincentives cross-border shopping and tackle alcohol misuse. 
  • Introduce tax and regulatory measures to incentivise companies in the food and drink sector that have huge Irish economy supply chains grow their businesses in the Republic of Ireland.
  • Not impose any additional costs on business, such as structural separation, additional advertising restrictions and health labels which will increase the cost of doing business in Ireland and effectively act as major barriers to nascent craft brewers and distillers.
  • Challenge EU State Aid rules to promote future trade with the UK.
  • Ensure all island geographic indicators for Irish Whiskey, Irish Cream, and Irish Poitín/Irish Poteen are protected and supported.
  • Assist the food and drinks sectors to diversify and gain market access to new markets.

The report’s author, agri-economist Ciaran Fitzgerald says: “Since the Brexit vote last June and the subsequent decline in the value of sterling, the food and drink sector in Ireland has faced enormous challenges in the short term, including a surge in cross border shopping.  In addition, measures proposed under the Public Health (Alcohol) Bill place will exacerbate pressure on a sector that employs 200,000 directly and indirectly. The outcome of Brexit negotiations remains unclear. However, it’s vital that the Government puts in place a series of policy measures which will support the sector, ensure it gains access to new markets, supports new entrants and protects the unique geographic indicators for Irish Whiskey, Irish Poitin and Irish cream that we share with the North.”

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • January 16, 2018Sival Plant Production Trade Show
  • January 17, 2018Anfas Food Product
  • January 17, 2018Dutch Organic Trade Fair
  • January 19, 2018International Green Week
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements