Brexit booze blues: No-deal scenario could result in higher drink prices
GLOOMY reports about the potential impact of Brexit are enough to drive some people to drink. But now it’s emerged that the price of that drink could rise as a result of Britain’s decision to quit the EU.
Industry experts here have warned that preparations for a no-deal scenario, including the possibility of tariffs on imports/exports, are not sufficient.
An Oireachtas committee has heard that alcohol worth €1.6bn leaves the island of Ireland every year. Any imposition of tariffs or disruption to the purchase of ingredients in either the Republic or Northern Ireland could ultimately hit consumers.
The Alcohol Beverage Federation of Ireland (ABFI) said a no-deal scenario could bring “immediate” tariffs on beer and cider. While pricing will be a matter for each individual company, the reality is that some will not be able to absorb the impact.
Patricia Callan, director of ABFI, said businesses are “very exposed” in the context of all-island supply chains.
“Most of our glass which we put products into, whether it’s beer, cider, wine, spirits, 130 million glass bottles are imported from the UK every year. Obviously if tariffs were introduced that would bring an extra cost,” she said.