Prices set to rise in the drinks industry
Drinks research company CGA has predicted that prices are set to rise in the drinks industry, with three-quarters of hospitality businesses admitting that they are likely to raise prices.
The research company says costs resulting from ongoing supply chain issues will result in price rises this autumn.
The poll of industry leaders found that 99% of hospitality businesses are currently experiencing supply chain issues, with 88% facing reduced product lines. More than four in five have seen deliveries of products delayed (82%) or failing to turn up completely (84%). Four in five are seeing higher costs in their supply chain (82%). 68% of drinks leaders identify supplies from Europe as a major problem following Brexit.
Sebastien Sepierre, managing director for EMEA at Fourth, said The survey paints a very stark picture of the supply chain crisis that is severely impacting hospitality businesses right now.
Tom Platt, deputy managing director of Liberty Wines, says Our supply planning team is working on much longer lead times – six to eight weeks from Italy and Spain, where it was previously three to four – to ensure we have stock arriving on time. He also said paperwork now adds 2 days to any shipment.