Britain is seeking to remove a 5 per cent tariff on exports of Scotch whisky to Australia in an upcoming trade deal, trade minister Liz Truss said on Thursday.
"A UK-Australia trade agreement would be significant for Scotch whisky and the Union," she said in a statement.
"I am fighting hard to get these tariffs cut and secure a deal that benefits producers in Scotland and helps the whole of the UK."
Australia is the eighth biggest market for Scotch whisky exports, worth £113 million last year. The Scotch Whisky Association (SWA) says a tariff cut will help boost sales and support distillers across Scotland.
"We’re looking forward to the conclusion of a free trade agreement with Australia - which will benefit Scotch Whisky exports, our Australian consumers and which will support free and fair trade," Karen Betts, chief executive of the SWA, said.
"Over the last 10 years, exports of Scotch Whisky to Australia have almost doubled. But they’re subject to a 5 per cent tariff which we’d very much like to see removed, which would help to boost growth in our industry’s eighth largest global market.
"The FTA is also an opportunity to strengthen the legal protection of Scotch Whisky in Australia, and to improve its enforcement. Stopping those who seek to take advantage of the quality reputation of Scotch Whisky with counterfeit Scotch is a priority for us in Australia, as it is in all our export markets."
A deal with Australia would be the first in a series of “next generation of trade deals” that the government wants to strike with large and fast-growing consumer markets beyond Europe.
Truss and her Australian counterpart Dan Tehan held talks late on Thursday as both countries are seeking to strike a trade agreement by mid-June.
The proposed deal with Australia is the most advanced of several deals being pursued by London.
Member nations of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) on Wednesday agreed to allow Britain to start the process of joining the pact.
Earlestown Athletic Junior Football Club have a brand-new training kit thanks to the support of SPAR Newton-le-Willows.
The club’s Under-17s Celtic team have SPAR sponsored yellow and black shirts and black shorts helping the players look and feel more professional at training sessions and on matchdays.
SPAR advertising boards have also been put up at the club’s ground, The Hive, and the sponsorship came about after Club Manager Carl Hollingsworth made a beeline for the SPAR Newton-le-Willows store when seeking a kit sponsor for the 2024-25 season.
Carly Ashurst, Store Manager at SPAR Newton-le-Willows, said: “I am very pleased we have been able to help out Earlestown on this occasion and are proud to be a sponsor of the club.
“SPAR is a community retailer, and I was delighted to visit the ground with my Area Manager Gill Leech to meet the team and give them our support for the rest of the season.”
Dave Edwards, Club Secretary at Earlestown Athletic JFC, said: “Huge thanks to SPAR for supporting our club with the training kit and advertising boards at our ground.
“The training kits look fantastic and are a much-valued resource for our players who train in them twice a week and also wear them to warm up before kick-off on Sundays.”
James Hall & Co. Ltd is a fifth-generation family business which serves a network of independent SPAR retailers and company-owned SPAR stores across Northern England six days a week from its base at Bowland View in Preston.
Farmers have warned they have "nothing to lose", campaigners have warned, amid fears grow that parts of the farming industry may disrupt food supplies in protest against the Government's inheritance tax policy while ministers are reportedly preparing contingency plans to ensure stores shelves remain stocked.
Industry officials are closely monitoring the escalating tensions and are expected to meet with government representatives this week to assess the potential impact of any action, The Telegraph reported on Sunday (17). This comes ahead of a planned rally on Tuesday (19), where as many as 20,000 farmers are set to converge outside Parliament to protest a 20 per cent tax on inherited agricultural land valued at over £1 million.
Campaign groups cautioned on Sunday that failure to negotiate a resolution could see more radical factions resort to drastic measures, such as blockading ports, airports, and railway lines.
The threat has raised concerns about empty supermarket shelves this winter and risks bringing back memories of disruption last seen at the start of the Covid pandemic, when people stockpiled food at home.
However, Environment Secretary Steve Reed has dismissed the possibility of a policy reversal. Writing in The Telegraph, he urged farmers to “check the facts” and defended the Government’s stance.
In a further attempt to defuse tensions, one minister called for calm, while a Labour MP suggested dissenting farmers had been misled by powerful landowners. With the protest looming and supply chains under threat, the Government faces mounting pressure to address the growing unrest within the farming community.
Prime minister Sir Keir Starmer, who is currently attending the G20 summit in Brazil, defended the Government’s Budget, highlighting a record £5 billion investment in farming. Speaking to reporters aboard a flight to Rio de Janeiro, he acknowledged concerns over the controversial inheritance tax but sought to reassure farmers.
“Obviously, there’s an issue around inheritance tax, and I do understand the concern,” Starmer said. “But for a typical case—parents with a farm they want to pass on to one of their children—by the time you account for exemptions on the farm property, spouse-to-spouse transfers, and parent-to-child allowances, there’s £3 million before any inheritance tax applies. That’s why I am absolutely confident the vast majority of farms and farmers will not be affected by this.”
The National Farmers’ Union (NFU) has publicly urged its members not to strike, but some farmers are threatening action. Clive Bailye, one of the organisers of Tuesday’s protest, said he would not condone direct action but warned some farmers could take matters into their own hands.
“If they really got their act together, they could block entire train tracks and ports. English farmers are a bit more Queensberry Rules than the French, they don’t want to punish the public. I could see things like ports or airports being disrupted if the Government really does dig in, that is what we are going to see over the winter.”
Meanwhile, Andrew Opie, director of food and sustainability at the British Retail Consortium, said, “Retailers are closely monitoring the impact of the potential interventions, including strikes, but are adept at dealing with disruption and are working hard to ensure customers aren’t impacted.”
Essex Police has urged the stores selling knives and blades to sign up to its Responsible Retailer scheme.
The initiative is a partnership with Essex Trading Standards and the Essex Police, Fire and Crime Commissioner to help prevent knife crime.
Responsible Retailers pledge to
Store and display knives safely and securely
Operate a strict ‘Challenge 25’ age verification policy
Prominently display ‘Challenge 25’ posters explaining age verification to customers
Provide full and robust training for retail staff
Understand they could refuse sale to anyone if there is a concern a knife will be misused, or if the buyer appears drunk, agitated or aggressive
Share relevant knife crime intelligence with appropriate agencies.
“Stores must not sell knives or blades to anyone who is drunk or who appears agitated or aggressive. Staff should also consider the sale carefully if the customer is presenting any signs of being in crisis or other such vulnerability,” PC Glen Foote said.
“In fact, they can refuse entry, refuse to serve or remove people from their premises for a variety of reasons.
“We want staff to feel confident to refuse a sale, particularly if they are concerned a knife or blade will be misused, even if the person is legally old enough to buy one.
“The law states you must be 18 or over to buy a knife but we ask scheme members to agree to Challenge 25, which means asking for ID from anyone who appears to be under 25 if they seek to buy one.”
Foote also pointed out that anyone buying a knife or bladed article online should also be asked to verify they are 18 when they buy it and should be asked for ID when it is delivered or they collect it.
Across Essex, police recorded 1,498 incidents of knife-enabled crime in the 12 months to 31 October 2024.
This is a slight decrease when compared with the same period last year and an approximately 8 per cent decrease on pre-Covid levels.
If you are a store owner or manager and wish to find out more about the Responsible Retailer scheme or contact Essex Police business crime officers, visit the webpage.
Diageo needs its leading stout beer Guinness to keep growing fast and is pushing a zero alcohol alternative. But price hikes are turning off some UK customers and opening the door to rivals such as Heineken's Murphy's.
Guinness has been a much-needed bright spot in earnings for the world's top spirits maker, under pressure after a downturn in sales of other key brands like Johnnie Walker whiskey in some markets helped force a profit warning last year.
Diageo has made continued momentum for Guinness a key part of its growth strategy. Future drivers include a potential roll-out of Guinness 0.0, the zero-alcohol version, on draught in pubs beyond Ireland. It is currently testing the move at The Devonshire pub in London.
But years of double-digit growth for Guinness have caught the eye of rivals, including the world's top beer maker Anheuser-Busch InBev, which hope to become more serious competitors to Guinness, a dark beer with a rich malty taste.
Meanwhile, a series of price hikes has irked Guinness customers like Shane Ranasinghe, who with co-directors runs seven pubs across south London, including The Montpelier in Peckham and The Railway in Streatham.
He and two other UK publicans Reuters spoke to said they had started pushing rival brands, in particular Heineken stout Murphy's, to express their frustration and dent Guinness' hold on the market.
Ranasinghe and his co-directors put Murphy's next to Guinness on tap at their pubs, and later added signs advertising that Murphy's is around one pound cheaper at between £5.60 and £5.90 per pint.
"We said, 'let's give them (Diageo) some competition'," he told Reuters. "It was a struggle at first. Now, one in four pints of stout are Murphy's."
A Guinness and a Guinness 0.0 zero alcohol beer taps are seen at The Devonshire pub in Soho, London, Britain, October 10, 2024. REUTERS/Hollie Adams
Complaints like Ranasinghe's are growing across London pubs, he and the two other publicans said, adding that as well as hiking prices Diageo had become restrictive in providing Guinness glassware and reduced the technical support on offer.
To be sure, Guinness remains by far the most popular stout. Previous efforts, including by Heineken, to break into the market have had little success.
But such frustrations offer an opportunity for rivals to capture more of stout's growth in Britain as drinkers and pubs look to "rebel against Guinness' dominance", said Lee Williams, beer category manager at UK alcohol distributor LWC Drinks.
Stout sales grew 12 per cent in Britain in 2023, and have risen every month since November 2021, driven by Guinness, according to the British Beer and Pub Association. The UK is the world's largest market for stout, worth $971 million (£769m) in 2023, according to drinks market research firm IWSR.
Diageo made $4.1 billion in beer sales in its 2023-24 financial year. It does not publish separate sales for Guinness, but the stout is its largest beer brand.
"We are proud that Guinness is enjoyed in over 60,000 pubs and restaurants across the UK," a Diageo spokesperson said, adding a team visited those outlets weekly to ensure quality standards as part of a major investment in the brand.
Growth, margins
Diageo is looking to Guinness to help offset faltering spirits sales. Guinness sales have grown double digits every year since 2021. Sales of Guinness 0.0 have also surged, more than doubling in Europe last year.
It wants to drive further growth including via sponsorship of English Premier League soccer and the potential expansion of Guinness 0.0 on draught, already available across 1,700 pubs in Ireland.
In Britain, where Guinness 0.0 is widely available in cans, Diageo said the label had reached an 8 per cent share of overall Guinness sales at end-June.
Diageo charges more for Guinness 0.0 than standard Guinness, because the company says it is more expensive to produce, two Irish publicans told Reuters. That is despite it avoiding hefty alcohol duties, which the Drinks Industry Group of Ireland (DIGI) estimates average €0.55 per pint.
General view of the exterior of St. James's Gate Guinness Brewery, in Dublin, Ireland October 9, 2024. REUTERS/Clodagh Kilcoyne
Diageo recently doubled capacity for non-alcoholic stout at its Guinness brewery in Dublin to 176 million pints per year. If all of those were sold in Ireland, it would mean €97m in duty savings for Diageo based on DIGI's estimates.
The Hope Fitzrovia in central London makes a 52 per cent margin on Guinness, versus 75 per cent for Murphy's, said owner Philip O'Sullivan.
Simon Clarke, who owns The Railway in south London's Tulse Hill, added Murphy's on tap after Diageo hiked his Guinness prices around 25 per cent since 2020 and, at one stage, three times in a year.
He used to sell 10 kegs of Guinness a week; now around a third of that is Murphy's.
Competition
Heineken told Reuters that its distribution of Murphy's in Britain remained small and it had not increased marketing support to the brand. However, it added: "We are seeing more licensees looking for an alternative to the market leader."
AB InBev, meanwhile, said growth in the stout market prompted it to launch its Camden Stout in May last year, adding it was now the second-largest brand in British pubs, restaurants and other venues. Britain's BrewDog also launched a stout, Black Heart, last year.
Murphy's, Camden Stout and Black Heart don't have zero-alcohol versions. Guinness 0.0, meanwhile, became the eighth top-selling non-alcoholic beer in British pubs or other venues in 2023, after launching cans in venues in 2022, according to food and drink research company CGA using Nielsen data.
Guinness is likely to remain dominant, but other brands can also succeed as more drinkers, including young people and women, get a taste for stout, LWC's Williams said.
"We believe they will look for alternatives," he said. "Instead of just one player, there could be three or four brands of scale."
According to a new Accenture research, price remains a significant factor in spending decisions this festive season, with nearly two-thirds of Brits (62 per cent) maintaining or reducing their budget compared to last year,
Feeling the squeeze, shoppers are tightening their purse strings yet again, with consumers planning to spend on average 11 per cent less than last year. To manage festive spending, 41 per cent are setting strict budgets and 36 per cent are searching for promotions, while nearly half (45 per cent) plan to delay their shopping until November and December.
As shoppers seek more economical ways to gift, the research shows that one in five (20 per cent) UK adults plan to buy presents second-hand from resale platforms, such as Vinted or Depop, or from charity shops. This trend is even more pronounced among Gen Z, with 25 per cent incorporating thrifting into their festive shopping plans.
Stuart Chalmers, retail lead for Accenture in the UK, said, “It will be another tricky festive season for retailers this year. Not only will they need to navigate consumers who continue to be cautious with their spending, but they must account for a developing shift in shopping behaviour, especially amongst Gen Z and Gen Alpha. These younger generations are embracing ‘lifestyle commerce’, which offers seamless shopping experiences and dynamic, consumer-driven marketplaces often found on social media platforms.
"To meet sales targets, retailers must understand that shoppers are increasingly moving towards digital channels, and resale platforms, not solely for financial reasons, but because they prefer the experience. More than ever, it’s crucial for retailers to understand the underlying motivations behind these behavioural shifts and adjust their strategies to accommodate the changing landscape.”
Experience based gifts
Many consumers are moving away from material gifts altogether in 2024, opting for more specific experiences instead. Nearly half (48 per cent) of shoppers said experience-based gifts, like travel and entertainment would allow them to do something unique.
Brits are at the forefront of this trend, with 67 per cent considering buying experiences for family and friends this season with most popular gift being entertainment, such as concert or theme park tickets (49 per cent), followed by travel (44 per cent) and wellness, like gym or spa and yoga retreats (43 per cent).
Gift cards
With UK festive shoppers overwhelmed by the amount of information they need to sift through when buying a gift (76 per cent) and 77 per cent overwhelmed by the number of options, weary shoppers are turning to gift cards to solve their "buyers’ block" – with over half of Brits receiving one last year.
While gift cards are chosen for their convenience – 71 per cent of consumers cite ease as the main reason for buying them. However, 39 per cent of receivers felt disappointed that the giver did not spend enough time to plan a personalised gift. To compound this, the research found that recipients aren’t making the most of their gift cards, with fewer than half using the total balance, and a notable 27 per cent forgetting about it entirely. As a result, an average of £109 per person was left unspent on gift cards in the UK last year.
While the purchase of a gift card immediately translates into revenue for the retailer, unredeemed cards represent a significant missed opportunity for retailers, which could gain new, lifelong customers and incremental sales if used effectively.
Chalmers continued, “With Brits fed up with receiving gift cards in their current state, there is great potential for a redesign. Building creativity and interactivity into the experience can help evolve gift cards from a last-minute, mind-blank gifting solution, into a thoughtful and personal gift that customers are excited to give, and recipients are excited to use."