UK's alcohol exports to EU crash in first months of year, though shipments outside Europe increase
Brexit combined with Covid lockdowns conspired to force exports of alcohol from the UK to the EU into freefall for the first couple of months of 2021, according to newly released data.
Spirits, the largest of the UK’s alcohol drinks sectors, saw exports to the European Union crash by nearly a third (32%) to £178m compared with the same period in 2020 according to the latest HMRC data covering January and February.
Wine exports fared even more badly, nosediving by 60% to £12.1m, while beer shipments to the EU fell by over a quarter (28%) to £15.4m in the same period. However, it is difficult to determine whether it was Covid or Brexit which had the biggest impact on the drop in the UK’s exports.
“Many hospitality venues across the EU have been subject to the same restrictive locdowns as here in the UK, which will inevitably lead to some reduction in demand,” said the Wine and Spirit Trade Association’s chief executive Miles Beale. However, he added that supply chain disruption, red tape and ongoing uncertainty and delayed rule changes associated with post-Brexit trading must also be factored in.
On a more positive note, the UK’s exports outwith the EU were much more robust, with beer the only one of the three categories to report a decline – down 10% to £42m. Exports to spirits to countries outside the EU were up 3% to £489, while wine exports were up by 2% to £46.9m.
“It’s encouraging to see exports of both wines and spirits to non-EU countries have increased,” said Beale. “This positive momenutum must be maintained – the political will to secure free trade agreements with our key non-EU trading partners, like the US and Australia, can help promote British exports of our world leading wines and spirits further still."
The WSTA is now urging the government to help the UK to “build back better” by slashing “unnecessary and burdensome red tape, of which there is plenty, as well as supporting exports more actively.”