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European brands will shun UK.
(From Off Licence News)
Graham Holter aand Laura Clark Retailers of European wines are reeling from the effects of a weakening pound, which has added 10% to 15% to their importing costs in the space of a year.
In May 2007, the euro was worth around 68p, but this has now risen to 78p, making wines from France, Spain, Italy and Germany far more expensive.
The situation has been made worse by the duty increase and rising costs, prompting suggestions that some European producers may abandon the UK.
David Gill, managing director of Bottle Green, the UK importer behind the French Connection brand, said: "Producers are saying the last market they will start in is the UK - there's no money in it. They are being forced to take their wines to other markets." "People are already at breaking point and they will go bust or withdraw from the market," another supplier told OLN.A Matt Dickinson, sales and marketing director of Thierry's, said: " The thing about exchange rates is a lot of people buy ahead, and the effect is not felt immediately. My inclination is the pound ...
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