While you might think that weak Sterling is not good news for any British manufacturer who exports to Europe and the wider world, the UK’s beer and wine producers may in fact see more overseas shipping than ever, thanks to the effects of Brexit.
Sterling currently sits at its lowest rate since 1985, with analysts expecting it to remain as such while the political and economic climate remains unstable. For these producers the benefits of a weak pound are two-fold at present according to The Independent, both of which could see particularly the craft brew industry hit a boom time over the next few months.
First up, the weak pound makes exports to Europe and beyond of British products more attractive and affordable to importers abroad – something which may lead to greater values than ever of British produced alcohol being sent overseas, according to analysts at Rabobank.
For breweries and distilleries in particular, this will mean good news, as most barley and malt is a domestic product, so won’t be affected negatively by the drop in Sterling’s value when bought and sold within the UK.
However, Britain is also a great importer of foreign wines, beers and spirits, which have more streamlined production processes that allow it to out-compete British products on price. However, a weak pound means that imports of these drinks will be more expensive – undoubtedly reflected in the price. This gives UK products the chance to level the playing field, making them more attractive options to supermarket buyers.