Price of pint likely to rise if UK crashes out of EU, warn industry experts
THE price of a pint could rise in the event that the UK leaves the European Union in a chaotic fashion.
Industry experts have warned that preparations for a no-deal scenario, including the possibility of tariffs on imports/exports, are not sufficient.
An Oireachtas committee heard yesterday 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.
Ms Callan said companies are “very concerned” about the potential for customs checks or delays.
The ABFI urged all parties to ensure that the Withdrawal Agreement currently on the table is approved.
This could have a particular impact on certain products such as Irish whiskey and poitín, which cannot be produced outside of this island under EU rules.
The deal currently allows for this special status to continue to apply to the North.
Food Drink Ireland also made a presentation to TDs and senators yesterday, in which its director Paul Kelly