The British Beer and Pub Association (BBPA) has revealed that beer exports to China and India have boomed by 500% and 417% respectively.
The industry – the UK’s third largest food and drink export market – is now worth £584 million, up from £500 million at the end of 2015.
Thirty-seven percent of UK beer exports are now sent outside the EU, the BBPA said. The value of non-EU exports went up by 6% during 2016.
‘Although UK beer duty is not payable on exports, a high rate of beer duty acts as a real barrier to the investment needed to help foster further export growth,’ the body says.
The BBPA had urged the UK government to stop a planned increase to alcohol duties, but an increase of 3.9% beer, wine and spirit tariffs was announced in the budget released 8 March. It will be implemented on the 13 March.
Room For Improvement
Brigid Simmonds, its chief executive, says that although 2016 was a “great year” for UK beer exports, there is still room for improvement.
“Continuing tariff-free access to our biggest market is essential as we leave the European Union, and our new export strategy will underline this,” she commented
“In addition, our strategy will set Brexit as an opportunity for Government to move towards a more competitive tax regime, which will help brewers invest and trade in developing markets around the world.”
Bob Hogg, Innis & Gunn international business development manager, described China as “one of the fastest growing beer markets in the world,” adding that his company is “incredibly excited to introduce our unique range of quality craft beers at a time when there is significantly increasing demand in the category.
“Through in-market knowledge and learning, and developing our understanding of the emerging dynamics such as distribution channels, consumer tastes and the competitor landscape, our approach in partnership with our importer and distributor Dxcel will be tailored to fully realise the potential to grow our business in the market, ensuring the Innis & Gunn portfolio meets the needs of both trade and consumer.”
Relatedly, UK gin exports reached £474 million last year, on the back of a 12% like-for-like sales rise.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Peter Donnelly. Click subscribe to sign up to ESM: The European Supermarket Magazine.
