Spain panic as businesses hit by huge supply problems – Brit expats sent Christmas warning

Boris Johnson 'needs to step up for British expats' says expert

We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info

Britons visiting Spain this Christmas could see empty shelves during the festivities as alcohol brands have reported issues reaching the country. 

This is because of transport problems due to Brexit.

Supplies are already said to be scarce in pubs, clubs and bars.

Supermarkets, however, haven’t yet been hit by the shortages.

The executive director of the employers’ association of Espirituosos de España (Spirits of Spain), Bosco Torremocha, warned about an explosive “cocktail” of costs.

He warned Spain could see sky rocketing freight rates, an increase in raw materials, such as ingredients,  glass, cardboard and cork, as well as traffic jams in Customs.

Hundreds of bars and clubs in Spain have reported these issues. 

Spanish media claimed this is going to hit businesses as they were finally starting to recover from the COVID-19 pandemic

Restrictions on bars and clubs have finally been eased in Spain and businesses were beginning to recover after a critical period.

Spirits of Spain explained these issues have nothing to do with an increase in demand due to the reopening of clubs and bars but “reasons out of their control.”

A statement confirmed: “The problems are a consequence of the global crisis in transport, which affects international trade and the supply of raw materials.

“We can categorically deny that this situation is due to an exponential increase in consumption but to problems derived from instability in the markets.

“After passing the worst of the pandemic, the recovery of the sector is now being weighed down by an enormous instability in the markets, a global crisis in transport that affects imports and exports, and also the supply of raw materials.

“The current situation is not a consequence of an increase in consumption but derived from a crisis in transport and raw materials.”

Bosco Torremocha said if the situation continues, some companies would see their survival compromised.

“A stock break is a drama for a company, although if it lasts two weeks it is less tragic than if it lasts three months. It lengthens and you cannot fulfill orders, you do not have invoicing and therefore you have no liquidity,” he warned.

The problem is also affecting exports of Spanish spirits manufacturers, who sell around 40 percent of their production abroad.

Spirits of Spain say, however, they don’t want to make any predictions for Christmas as they needed to address the problem now.

Spanish beer won’t be affected by these issues as the main beer groups operating in the country have factories in Spain and do not depend on international transport or Customs. 

Additional reporting by Rita Sobot

Source: Read Full Article