UK truck shortage could take fizz out of Christmas: drinks sector

[LONDON] Britain's favourite festive tipples, including champagne, could fall victim to the lorry driver shortage, the drinks sector warned on Wednesday, urging state intervention.

The Wine and Spirit Trade Association (WSTA) said in a statement the government must take more "immediate steps" to address the shortage and prevent more empty shelves.

"Businesses are still struggling, and further action is needed, particularly now in the run up to Christmas - a critical trading period for our sector," the sector body wrote in an open letter to Transport Secretary Grant Shapps.

The letter, organised by the trade body, was signed by 49 leading companies including the UK divisions of Laurent-Perrier, Moet Hennessy and Pernod Ricard.

The signatories added that shipping times were currently up to five times longer than the same stage one year ago.

"Drivers and vehicles are increasingly unpredictable in their arrival times, meaning goods are either not ready or are left waiting for collection," the letter continued.

"As a particularly competitive industry, the inability to fulfil orders in a timely manner can result in the loss of business, as products can be easily replaced by comparable products from elsewhere in the world."

The letter said government taxation revenues would ultimately be hit - along with consumers who are already face soaring consumer price inflation.

"While businesses are doing their best and being as flexible as they can, this loss of certainty and predictability is hugely damaging for their supply chain - and ultimately their bottom line, consumers, and tax revenue," it said.

"There is only so much businesses can do without having to increase costs for consumers."

Britain faces a worsening supply chain crisis due to Brexit and Covid, from backlogs in shipments to shortages of lorry drivers.

Resurgent demand from reopening global economies has created supply bottlenecks, while tougher immigration rules and bureaucracy for foreign workers have sparked crippling staffing issues.

AFP