Spirits reps strike up single market discussions

Trade bodies have sought to reassure spirits industry members that they are pursuing “minimum possible disruption to trade” in the face of “seismic” change post-Brexit.

The WSTA has commenced discussions with government about future access to the single market post-Brexit

In the wake of last week’s UK referendum to leave the European Union, representatives of the international drinks sector warned of “years of uncertainty” to come.

However, the Wine and Spirit Trade Association (WSTA) said despite challenges post-Brexit, it is “well placed” to provide practical advice to its members in the immediate term and assist with preparations for the future.

The group said it has a “proactive agenda to ensure that the interests of the wine and spirits industry are protected” and is already talking to government about future access to the single market.

Miles Beale, chief executive of the WSTA, said: “Brexit heralds a time of uncertainty. Like others, our industry finds itself in uncharted waters.”

“While the consequences of the Referendum are seismic, it is important to remind businesses that there are no immediate changes as a result of the Referendum result. The UK remains in the EU and the single market until such time as negotiations have completed – which is likely to take two years or more.”

He continued: “The WSTA is well placed to work with others to shape the future. We will carefully consult members to identify what they need, their priorities and how to take advantage of opportunities.

“It is crucial that Britain’s wine and spirit businesses and consumers get the best out of Brexit.”

In addition, Spirits Europe has urged EU leaders to “ensure minimum possible disruption to trade”, both with the UK and other countries, stressing that European spirits abroad generate more than €1m for the EU every hour.

Following the release of its annual trade report ‘Made for trade: spirits success abroad’, the organisation argued that while European export sales “bounced back” in 2015 to reach €10bn, the “prospects for future spirits trade appear less certain” after the result of last week’s referendum.

“We want to celebrate the great performance of our exporters in 2015, offering a net gain to the European economy of almost €9bn, but we do so with a wary eye to the future as we weigh the possible trade consequences of the Brexit vote,” said Paul Skehan, director general of Spirits Europe.

The organisation said Brexit has “generated many more questions than answers” for the industry, but added that it is working “closely with politicians and our sector colleagues in this new political environment, to ensure the best possible outcome of this divorce”.

Once the UK government triggers Article 50 of the Lisbon Treaty, the nation will have two years to conclude its exit negotiations with the EU.