Managing Director of Mangrove Global and outspoken industry commentator, Nick Gillett, has provided his reaction to the Labour Government’s Autumn Budget. With doom and gloom forecast by the media well in advance of the Budget’s publication – the new fiscal regime was never expected to be "good for business". That said, there will be many in the hospitality and spirits industries wondering exactly how they’ll manage when the bulk of changes take effect in April next year. Nick says it’s an age-old tale of the government introducing more costs and offering no assistance:
“Prior to the Budget being announced, I said the best we could hope for as an industry was to be left well alone. But sadly, that was a pipe dream.
“And whilst the unprofessional trailing of details hinted it was going to be a lot worse than it was – it’s still nothing to shout about. A vast increase in employment costs, rises to alcohol duty for spirits, and a lessening of the rates relief currently available to the hospitality sector, means that more businesses are bound go under.
“Since Covid and Brexit, many companies have never fully recovered, continuing to operate on the slightest of margins – and these added costs and lessening of support will be the final nail in the coffin for many.”
Since Covid, the Hospitality, Retail, and Leisure sectors have received significant business rates relief to help bolster the struggling sector – in the last few years the relief has remained at 75 per cent. This was hard fought for by industry lobbyists such as UKHospitality, in an attempt to protect businesses and employees alike. In the last Autumn Statement the Conservative Government extended the relief by another year, and still 50 venue closures a month were reported in the first six months of 2024. The latest Budget marks the end of the current relief, with a reduction to 40 per cent confirmed for April 2025.
He added: “To fully understand how damaging this is for hospitality, you need to go way back. The sector was first struck by Covid and the lockdowns. It was hit by increasing costs in alcohol, thanks to increased duty and bureaucracy. Cost of living continues to reduce disposable income and custom. And Brexit has forced out swathes of the workforce that was the lifeblood of the industry.
“Now, the Government continues to pile on costs – and we’ll need to wait and see if any of this actually increases the public’s spending power by putting more money in their pockets. One thing that is for sure – the only way businesses will survive is by increasing prices. And that will have an added effect on inflation.”
The Autumn Budget also detailed a mixed bag of changes that will affect spirits producers - including alcohol duty. Whilst duty on alcoholic drinks served on "draught" will reduce by 1.7 per cent, wine, spirits, bottled beers, and cider will see duty rise by retail price inflation. Both the lower and higher rates of the soft drink levy will also increase to £1.94 and £2.59 per ten litres respectively. Not only will this push up the price of tipple for great British drinkers, but it will also stifle growth.
“Previous, recent rises in alcohol duty have shown that the rise is passed onto consumers, leading to fewer sales, and less money raised for the treasury. So, to confirm another rise seems illogical," Nick continued.
“But let’s get this straight. The hospitality and spirits industries are bursting with talented, creative, and entrepreneurial people. Where these businesses thrive, local economies succeed.
“As much as the Government’s Budget hasn’t gifted us any giveaways, I have no doubt the industry will pull together, weather the storm, and come out the other side. All off the back of the exceptional people behind it.
“And when that happens – the UK economy will once again reap the benefits our success, as it always does.”
Trust in UK-produced food has reached its highest level since 2021 following three years of falling confidence in standards.
Most (75 per cent) adults now say they trust food produced in the UK. This is a rise from 71 per cent in 2023, although still below the level of trust felt by shoppers in 2021 (81 per cent).
The figure rises to 91 per cent when consumers are asked whether they trust food "exclusively produced" within the UK.
Significantly, more people now say they trust UK food more than NHS care, water from the tap, or any other core service or utility.
A clear majority (85 per cent) of respondents to the survey say they trust the country's farmers, compared to just 9 per cent of whom express distrust.
Animal welfare remains the most important aspect of food production for consumers, and 72 per cent of adults say farmers follow good animal welfare standards.
And a majority of respondents (72 per cent) say that assurance labels were a reason to trust food, while 77 per cent say that labels showing where food comes from helps build trust.
The findings, which draw on research from over 3,000 UK consumers, form part of Red Tractor’s annual Trust in Food Index. First produced in 2021, it is designed to provide the most comprehensive assessment of consumer attitudes to food in the UK.
Jim Moseley, CEO of Red Tractor, said the past four years had been 'brutal' for the food and farming industry. Farmers have particularly faced a series of challenges, such as severe weather events, poor harvests, and the prospect of rising taxes on the horizon.
"Not since the foot-and-mouth crisis over 20 years ago has the food industry had so much to contend with," he said.
But this year’s findings will likely give a boost following years of rising costs and higher prices for consumers.
Meanwhile, the importance of the Red Tractor logo when choosing food has risen to its highest level in the four years since the Trust in Food Index began.
Moseley concluded, "It should be a source of huge pride to everyone involved in food production in the UK that food is now more trusted than water or any other basic service we rely on every day
"Despite the extremely challenging environment, farmers’ efforts to work to some of the highest standards in the world has played a significant role in driving a resurgence of consumer trust in UK food."
Carlsberg Britvic is celebrating its official launch today (17) following the completion of the deal for Carlsberg Group to acquire Britvic plc.
In a landmark moment in the history of Carlsberg Group and the British drinks industry, today (17) marks the official launch of Carlsberg Britvic – the new company uniting Carlsberg Marston’s Brewing Company (CMBC) and Britvic’s UK business.
Carlsberg Britvic’s strong national footprint brings together CMBC’s breweries and leading in-house secondary logistics operation – with 15 depots servicing customers across the UK – with the dynamic packaging and production capabilities of Britvic.
The business is now the largest multi-beverage supplier in the UK, making the UK Carlsberg Group’s largest market by revenue in the world.
Across soft drinks, beer, and cider, Carlsberg Britvic is home to many iconic and popular brands. Its compelling soft drinks range includes well-known names such as Pepsi MAX, 7UP, Tango, Robinsons, J2O and Fruit Shoot, through to fast-growing breakthrough brands including the plant-powered Plenish range and Jimmy’s Iced Coffee.
These leading soft drinks brands will now sit alongside the Group’s flagship Carlsberg Danish Pilsner, as well as 1664, Birrificio Angelo Poretti and Brooklyn Brewery beers, as well as leading British ales such as Hobgoblin, Pedigree and Wainwright.
Paul Davies, formerly CEO of Carlsberg Marston Brewing Company, will take up the position as CEO of the newly formed Carlsberg Britvic in the United Kingdom, effective 17 January 2025.
Davies said, “This is a historic moment for everyone across our unique combined multi beverage business, I am immensely proud to have the opportunity to lead this new company, featuring so many iconic brands and so many dedicated and talented people.
"As we look to the future together, Carlsberg Britvic will demonstrate the important values that underpin our dedication to our customers, our consumers, our people and our planet.
“Carlsberg Britvic combines the fantastic qualities of both businesses and our shared ambition to grow the UK beverage category through our unique proposition across soft drinks, beer and cider.
"We are all eager to build a successful future together as we create new opportunities, integrate our operations and continue to deliver excellent choice, product quality and service to our customers.
“On behalf of everyone at Carlsberg Britvic, I would like to thank all those whose effort, commitment and passion have made today possible.”
Davies began his Carlsberg career in Marketing with Carlsberg UK in 2007 and has subsequently held the positions of VP Marketing and VP Sales for Carlsberg Sweden, and VP Craft & Speciality for Carlsberg Group in Copenhagen.
In January 2019 he was appointed Managing Director of Carlsberg Poland, where he was also Chairman of the Polish Brewers Association.
Davies is supported in his role by the new Carlsberg Britvic Executive team.
The new company will combine the strong shared values of CMBC and Britvic, maintaining ambitious targets in areas such as sustainability and equity, diversity and inclusion, while also delivering the highest standards of customer service and quality.
Accompanying the official launch, Carlsberg Britvic will be revealing its new corporate identity next week, which will be rolled out across the business as part of the integration of its operations in the UK.
Boparan Holdings Limited (BHL), the parent company of 2 Sisters Food Group, has announced the appointment of Paul Friston as its new group chief financial officer (CFO).
Friston will join the 2 Sisters Food Group business in early February and become a member of the BHL board.
He has a 28-year track record in financial and corporate leadership roles at Marks and Spencer, taking on senior finance, strategy, commercial & transformation roles, as well as holding the post of managing director of M&S' International business for six years.
Friston takes over from Nigel Williams who has decided to return to return to Australia for family reasons.
“I am delighted to welcome Paul to 2 Sisters,” Ranjit Singh, president of BHL, said.
“He joins at an extremely important time for the business and I look forward to working closely with him as we execute our ambitious sustainability and investment plans in the coming years which will shape our business for the next generation."
Friston added: “2 Sisters is a dynamic business, I know it well and very much respect it as a food manufacturing leader in the UK, so I am extremely happy to be joining the team.
“There are clearly many challenges for the food sector in such a competitive and cost-conscious environment, but the potential of a business as ambitious and significant as 2 Sisters is a truly exciting prospect. I look forward to playing my part in taking the company forward.”
A resident of Oxfordshire has started a campaign to raise funds to install metal shutters for Spar Minster Lovell store the front doors of which were completely devastated during a ram raid recently.
Calling the shop as "cornerstone" of her community in Oxfordshire, resident Karen Turner-Dutton is calling on people to offer donation to restore Spar Minster Lovell, owned and run by the family of retailer Ian Lewis, after its front was damaged badly during the shocking ram-raid.
"This store isn’t just a business; it’s the heart of Minster Lovell, a place that connects and sustains our village. We can’t afford to lose it," Karen states on the fund appeal's Go Fund Me page.
"Every donation, big or small, will help secure the shop and bring peace of mind to Lyn and Dave. Let’s come together to protect this vital part of our community and show the Lewis family how much they mean to us."
The funds are being raised for metal shutters to prevent future break-ins, a Smoke Cloak system to deter and neutralize intruders and for an upgraded alarms for faster response times and better protection.
During early hours of Dec 27, five individuals smashed through the front doors of Spar Minster Lovell near Witney in Oxfordshire and used a vehicle to pull an ATM machine through the premises, causing extensive damage to the shop’s infrastructure and stock.
They made off with the cash machine, which had about £2,500 inside. Around £1,000 in stock was lost; the fridges were also damaged due to the impact.
Lewis told Asian Trader at the time, "The cash machine was at the back of the store. It was pulled and dragged right through the chiller and ambient area, causing extensive damage to the store, chiller doors and, stock.
“The automatic doors of the store were replaced recently on Dec 17, after the last break in that happened in September. We haven't even paid that bill fully and the doors are now completely damaged. This is over and above all the damage that the store sustained.
"Since the machine was at the back, almost the whole store has been shattered since it was pulled and dragged through, breaking everything that came on the way."
The ram-raid incident came as a shock to the community as well. Many locals and regular shoppers reportedly helped Lewis and his family to clear the shop floor which was filled with broken glasses and spilled stock.
As the shop reopened, they had to board up the doors which makes it look like it is closed. This has meant passing trade has significantly decreased, leaving Lewis about £30,000 down.
Still disturbed by the incident, Lewis thanked Karen for launching the fund-raising campaign.
"Your kindness and effort mean the world to us, and we’re incredibly grateful to have such supportive members in our community. Every bit of support makes a difference, and together, we can ensure the store remains a safe and welcoming place for everyone," Lewis wrote on social media.
He also thanked AF Blakemore & Son Ltd for their "ongoing support during this tricky period".
Lewis wrote, "The banners and posters they designed and printed in record time will hopefully help make customers aware that we are open."
The recent ram-raid has been devastating for Lewis' family, particularly his elderly parents who were sleeping upstairs during both incidents.
The business has been in Lewis’s family for generations, set up by his grandmother in 1937.
The store was targeted for the second time in three months. Earlier in September 2024, a group of four masked men were caught on store's camera trying to break in the store before they cut the CCTV connection.
In Glasgow's East End, Davie’s Mobile Grocery Shop is rewriting the rules of convenience retail. Operated from a van, this innovative store brings groceries and essential services directly to the community, making shopping easier and more accessible.
Through a partnership with Payzone, Davie has extended his offerings to include bill payment services, enhancing both customer convenience and his business prospects.
After identifying a need for more accessible shopping options, Davie ventured into mobile retail, creating a unique business model that’s as practical as it is innovative.
“It’s essentially a store on wheels. I sell almost everything you can buy in a traditional convenience store, but instead of having a retail space, I use a van and travel around the East End of Glasgow,” Davie has said.
Beyond selling groceries, Davie’s mobile shop has become a social hub. It’s a space where locals not only pick up their essentials but also connect with one another.
“I enjoy speaking to different people every day. I have regulars now, and it’s nice to chat with them and find out how they and their families are getting on,” he added.
Like traditional convenience stores, Davie’s shop offers a range of products including everyday essentials such as bread and milk, which are the top sellers; food items such as tea, coffee, cold meats, bacon, sausages; household goods including toiletries and cleaning products; and a range of treats and snacks.
By bringing these goods to his customers, Davie makes shopping accessible for those who might struggle to visit a store.
“It allows people who aren’t able to travel, for whatever reason, to pick up their groceries and pay their bills without having far to go,” he said.
Davie’s partnership with Payzone has elevated his business by integrating valuable services like gas and electric top-ups and regional offerings such as SPT ZoneCards.
“It’s definitely brought new customers to the van. Most people also spend money buying groceries, so it’s helped improve turnover,” he said.