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A perfect storm of unfortunate circumstances is threatening the beer biz in the United Kingdom.
UK Beer Tax Freeze Reversed
A temporary freeze on alcohol taxes (they call them duties in the UK) was recently reversed by the country’s new Chancellor of the Exchequer, Jeremy Hunt, adding new worries to a beer industry still reeling from the economic impact of the pandemic.
“Today’s emergency statement by the chancellor undoes many of the positive measures announced in the mini-budget only a few weeks ago, including a welcome freeze in alcohol duty from February next year,” said SIBA chair, Roy Allkin…
“Small independent brewers will now have to wait a further few weeks to understand what this means for them, as the shake-up of the overarching alcohol duty system is still expected to go ahead.
“Again, this is creating more uncertainty for small brewers who are facing an extremely challenging trading environment dominated by energy spikes, price increases, and a cost of living crisis.”
“The chancellor’s decision today to reverse the alcohol duty freeze is a huge blow to brewers and pubs,” added Emma McClarkin, chief executive of the British Beer and Pub Association.
“The freeze would have delivered a £300m saving to our industry at a time when we desperately need any relief we can get, to help to keep a lid on spiraling costs and keep the price of pint affordable for pub goers this winter.”
“The cost of doing business is completely out of control for pubs and brewers, and the failure to act today to reduce pressures on businesses will hit them extremely hard.”
Major Beer Delivery Strike Threatens UK Pubs
Around a thousand GXO beer delivery workers who handle around 40 percent of beer deliveries to UK pubs and venues plan to stage the first round of strikes between October 31 and November 4 at depots across the United Kingdom.
To make matters worse the planned strike is scheduled to take place at the height of the World Cup finals when pub attendance and beer drinking in general historically peaks. GXO Logistics delivers to about 4,500 pubs in London and south-east England.
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