Amid Brexit uncertainties, British businesses have started to increase their stock of alcohol ahead of the Christmas period. The UK has not reached a deal with the European Union yet, thus it is still unclear for firms on how easy it will be to trade with countries from the bloc. Fears of a no-deal Brexit has had companies to stockpile alcohol, as a precaution to not risk supplies running out during the Christmas festivities. 

Following the most recent talks, the EU agreed to extend the Brexit deadline, pushing it further until October 31st. Businesses grew concerned that the new deadline would affect their supply for Christmas, as the amount of imports increase and will gradually slow down firms. The Guardian reports that several British companies acted now and did not risk running out of supplies by ordering a bigger amount of goods. A survey from the Chartered Institute of Procurement and Supply (Cips) highlighted that over a fifth of the firms began stockpiling to make sure that sales would not be affected if a deal with the EU is reached. 

Economist at Cips, John Glen explained, ‘It’s particularly wine from the EU. Companies have bought well ahead of Christmas this year, due to potential disruption at the ports and to try and avoid depreciation in the value of sterling against the euro.’ Statistics show that British consumers buy over 26 million bottles of champagne every year, making Britain the biggest export market for the drink. 

A survey that Cips carried out illustrated that less than half of the British firms will not trade with EU countries in the scenario of a no-deal Brexit. Glen added on to say, ‘Mass border disruption during this time could have a catastrophic impact. Businesses need to be provided with as much detail and support as possible to ensure they can survive the festive period.’

Read the latest news update: Asian companies’ sentiment climbs, while recession fears heighten