The Perfect Storm
The last few months have seen unprecedented challenges facing the UK drinks industry and this is likely to continue for much of the rest of the year.
It has been well documented and reported in the media that the hospitality sector has been one of the hardest affected by lockdowns and closures. During the last 16 months, 9 months have been lost due to either full or partial lockdowns of the trade due to the COVID pandemic.
However, as we gradually get back to normal it is certainly not normal anymore, here are just a few of the current difficulties we all face:
- On-trade businesses already under severe financial pressure have lost skilled and experienced staff who have either just not returned to work or have become disillusioned and left the trade for other jobs.
- The effect of the dire shortage of drivers and transport both in the UK and in the EU has had a debilitating effect on logistics and getting product through the wholesale chain to the consumer.
- Customs and excise are struggling to process shipments quickly due to the new Brexit documentation required causing massive delays and huge backlogs of stock stuck at ports and in bonded warehouses up and down the country.
- Dock strikes and political unrest in South America and South Africa have meant delays in consignments of certain wines reaching the UK in the normal lead times.
- The general increase in demand over the summer combined with Euro 2020 has led to shortages of certain drink products, especially beer and wine.
- Poor harvests of Sauvignon Blanc in Marlborough (New Zealand) and Chablis (France) have led to restrictions in the grape yield, therefore the availability of certain wines popular in the UK. This situation will get progressively worse until the next harvests are produced which will only be available into 2022.
These and other factors have led to enormous pressures on the supply chain of wines coming into the UK at this moment in time. Thank you for your interest in our wine selection.