Exclusive: UK drinks trade backs the EU

The WSTA, the UK’s Wine and Spirit Trade Association, will publicly announce a pro-EU position against Brexit, Troy Christensen, Enotria & Coe’s chief executive has revealed.

Troy Christensen, Enotria & Coe chief executive

Speaking exclusively to the drinks business at Enotria & Coe’s portfolio tasting in London, Christensen – a member of the WSTA board – confirmed that WSTA’s board had agreed to support Britain remaining in the European Union.

“[Being part of EU] is about ease of operation, and the current currency volatility resulting from uncertainty over Britain’s future in the EU is negative,” Christensen said.

“The current ripple on the water [from currency volatility] can easily get much bigger and it is a dangerous prospect,” Christensen warned.

Christensen was speaking after numerous drinks businesses including Diageo’s Chief Executive Ivan Menezes, signed a letter published in The Times in support of Britain remaining in the EU.

The letter said Britain’s Prime Minister, David Cameron had secured a commitment from the EU to reduce the burden of regulation, deepen the single market and sign off crucial international trade deals.

Although some supermarkets have not signed the letter, drinks industry fears over Brexit have surged following Boris Johnson’s decision to join the ‘Leave’ campaign. One industry source said there had been “panic” over the threat of Brexit, as reflected in the markets with the recent drop in the value of the pound.

“Leaving the EU could have a dramatic impact on costs; the whole drinks industry is set up to operate as part of the EU,” said Jon Pepper MW, Enotria & Coe’s Buying and Retailing Director.

Pepper said wine imported from the EU represents 65% of Enotria & Coe’s portfolio. Numerous industry players have cited concerns over wine labelling issues of non-standardisation that would result from Brexit.

WSTA would not officially disclose its position, however, Christensen said only a minority of members had voiced pro-Brexit opinions. WSTA’s board adopted its pro-EU position in January, according to Christensen.

A source at WSTA said it would publicly announce its position on Britain’s future in the EU in the coming days.

The source said the board’s decision had been adopted following months of consultation with WSTA members. Dan Jago, chief executive at Berry Bros & Rudd, who is currently in San Francisco, was unavailable for comment.

Meanwhile, it is understood that numerous English wine producers, many of whom are seeking to start or expand exports to the EU, have voiced strong concerns over the possibility of Brexit.

English wine producer Ridgeview said that Brexit could threaten the development of its new EU export plan. Ridgeview revealed to the drinks business that it plans to increase the percentage share of its EU exports from 15% to 30% over next two years.

Christensen said WSTA members had expressed concern over the current uncertainty surrounding the UK’s future in the EU, adding that Brexit would bring bring more red tape, administration costs and the prospects of new tariffs and customs duty.

“From a business perspective, most WSTA members and I feel strongly about the UK remaining in the EU,” Christensen said.

“We are selling drinks worldwide and we need consistency in prices,” he added. Christensen warned that any move to bring off-trade and on-trade prices closer together, as result of the eventuality of Brexit, would be counteractive.

“It is better to be seated at a table of influence; the EU framework works for the whole drinks industry,” he said.