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The gin and tonic fever, that spirit drink so fashionable in recent years, has encountered an obstacle in our country as a result of Brexit: «British gins and other liqueurs from this area have raised prices by around 15-20 percent». These are the words of Roberto, a hotelier from the Madrid district of Ciudad Lineal, who quickly has the support of other businessmen in the capital hurried by the drop-off arrival of the products with which they generate profits.
It is a reality: Brexit is wreaking havoc in the alcoholic beverages sector, directly affecting the hospitality industry. «For example, Seagrams we have not had for two weeks and that I work with several providers. Tanqueray gin or Johnnie Walker whiskey is also starting to become scarce, ”says Alfonso, who runs a pub and a cocktail bar in Madrid’s Chamberí district. «It has been noticed in the prices. Bottles of Seagram’s or Beefeater are up about 20 percent, and all spirits coming from this area are up as well. It is being noticed in the increase in prices and the scarcity of British products “, adds Rodrigo Hernández, another hotelier in the center of Madrid.
From the Espirituosos de España association, they point out that, with the pandemic, a kind of ‘perfect storm’ has been created as the cause of this temporary shortage. «With the Covid and the drop in demand from the hospitality industry, stocks were cleaned up, the entire supply chain stopped having ‘stocks’. In addition, with the transportation crisis and everything derived from it, post-Brexit is being difficult to digest. All extensions with the United Kingdom are being affected and it has lasted a few weeks, although it has not affected the entire sector as a whole, nor to all brands», Points out to ABC the president of the entity, Bosco Torremocha.
For its part, from the nightlife sector, one of the main affected, they assure that it is a problem that is not only focused on gins. «It is something specific, but on certain British brands there may be a problem», Explains the spokesman for Noche Madrid, Vicente Pizcueta. In fact, the problem you are talking about could last until Christmas, as British Prime Minister Boris Johnson himself recognized.
Stock break due to the pandemic
This crisis situation in international trade is not only affecting leisure establishments, but also retail liquor stores. «Spirits have had a certain price increase and there is stock breakage in some products such as London Dry gins and other products originating in the United Kingdom ”, confirms the manager of the ‘Bodegas Mariano Madrueño’ establishment on the other side of the phone.
From Spirits Spain they have wanted to clarify that the shortage of products such as British gins do not have their origin in the increase in consumption, but in the crisis of transport and raw materials. “The recovery is now being hampered by enormous instability in the markets, a global crisis in transport that affects imports and exports and also the supply of raw materials,” they point out.
In this sense, they warn that the lack of demand – sales fell between 30 and 50 percent last year – caused by the pandemic and its restrictions have caused stocks to fall to minimum levels. In addition, they explain that the rising cost of energy sources due to geopolitical reasons «have intentional trade severely stressed“, Having an” impact on the marketing of spirits, including the supply of bottles, cardboard, aluminum and other materials necessary for the distillation of alcohol.
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