As economic pressures continue to squeeze the alcohol industry, independent retailers are being especially impacted, Miles Beale, CEO of the WSTA, said during yesterday’s opening of the London Wine Fair. 

While the entire industry is affected by ever-growing tax burdens and declining consumer confidence, Beale noted that smaller merchants are particularly struggling to keep pace with the rapid rate of change. 

“Changes tend to impinge on small businesses more than large ones because they have less room to manoeuvre. They have fewer cash reserves, fewer people and they can’t suddenly adapt their business models in the same way,” Beale said. 

In response, smaller retailers are becoming increasingly practical with their sales strategies and stock management. “Everyone is very focused on what the customer wants and how to deliver it to them in the most cost-efficient way possible.” 

Equally, Beale continued, the WSTA is also shifting the way it approaches its own role, placing greater focus on helping businesses with their day-to-day operations alongside its broader concentration on lobbying the government. 

Beale said: “The WSTA will continue lobbying the government, but it can also help with things you might not realise. For example, we have a label-checking service you can get in touch about. We also work with The Portman Group, so you can contact us for the right information.” 

Talking to Government 

With this said, Beale emphasised the importance of maintaining an ongoing conversation with the government and encouraging local businesses to stay in contact with their representatives. 

Drawing on statistics, the WSTA CEO said the wine and spirits industry is worth £76.3bn to the UK economy and supports more than 400,000 jobs. This, he said, needs to be consistently communicated so the government understands the vital importance of the trade’s survival. 

He also stressed the importance of highlighting the broad range of jobs created by the industry, including not only hospitality and retail, but also logistics, warehousing, production and marketing. 

“We need to think about how we can make our sector more attractive to government so it will support what we have to offer. Thinking about hospitality and the wider supply chain is how we can position ourselves more strategically,” Beale said. 

DRS and EPR 

On the topic of taxation, Beale also provided updates on both EPR and the DRS.

On EPR, Beale said: “We’re comfortable with the idea that polluters should pay, and that the cost should fall to producers and manufacturers. After that, we completely part ways with the government because what they have introduced has been incredibly poorly designed.” 

Criticising both the pace and organisation of the government’s rollout, Beale said there are still many issues with the EPR system that have yet to be addressed or resolved. As such, while the scheme is technically in its second year, he predicted it would not be fully operational until the third or fourth year.

“They are playing catch-up,” he said. 

Likewise, complications surrounding the DRS continue, with the inclusion of glass remaining a source of tension between different parts of the UK. “Wales flip-flops all over the place,” Beale said, referring to the country’s current plans to include glass where possible, diverging from the English version of the scheme. 

Final thoughts 

Overall, Beale’s opening speech at the London Wine Fair painted a picture of a complicated and somewhat struggling industry. However, it also evoked the image of a resilient trade that is adapting in order to survive.