Berry Bros blames job losses on NI increases
Wine and spirits merchant Berry Bros & Rudd has entered into a redundancy consultation process with 30 members of staff in response to the recent increases in UK national insurance (NI) contributions.
In a statement shared with the drinks business, CEO Emma Fox said the company had entered into redundancy consultation with 30 of its employees, citing global economic headwinds as a factor in the company’s decision.
She also said the recent increases in NI contributions for employers, which will rise from 13.8% to 15% in April, were a contributing factor.
The NI rate increase was introduced by chancellor Rachel Reeves in the 2024 autumn budget. In addition, the threshold at which employers start paying NI will decrease from £9,100 (US$11,346) to £5,000 (US$6,234).
The Spirits Business reached out to Berry Bros & Rudd and received the following statement from Fox: “Like many businesses, we are having to make some very difficult but necessary decisions in the face of extremely challenging global market conditions, as well as significant cost pressures, high inflation and recent increases in NI contributions.
“As such, we have recently entered into a consultation process with colleagues across 30 roles. We are doing everything we can to support all of our dedicated colleagues and especially those affected by this announcement.”
The company did not confirm which roles within the business are at risk, or what, if any, measures were taken to avoid this outcome.
However, Berry Bros & Rudd told db that the consultation will ‘affect roles across all departments’.
The company reported 42% year-on-year revenue growth for its spirits last year. It was these results that encouraged the merchant to open its first dedicated spirits shop in April last year, which sells a range of almost 1,000 products.
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