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Pernod Ricard's Denis O'Flynn urges senior industry figures to sign up and back WSTA

Published:  06 March, 2015

More senior businesses and figures in the UK wine and spirits industry need to get behind the work of the Wine & Spirit Trade Association to try and protects its future growth, according to Denis O'Flynn, managing director of Pernod Ricard UK, and the trade body's new chairman.

In a frank interview in the March issue of Harpers and for subscribers here on Harpers.co.uk O'Flynn makes an empassioned appeal to his senior colleagues in the trade to give the industry's most important trade body their personal and financial support.

O'Flynn believes a lot of drinks businesses don't understand the work and value of the WSTA. "When you think of Packaging Recovery Notes [the trade has saved around £50 million in glass recycling fees in the last year after a WSTA-led campaign sought to cut spiralling costs], that was very significant. Everyone benefited from our campaign."

He added: "I'm now asking, why don't you become part of it? If you want your messages heard in the right places, we can articulate them better than anyone else. And it works both ways: our credibility is increased from having broader alliances. It's a virtuous circle."

The WSTA, he said, would be working harder to attract a wider membership base and was hoping to bring in more English wine producers, mid-sized retailers, independent merchants and craft distillers. "We need to broaden our base."

He said his primary initial task as chairman of the WSTA is to make the case to parliament "for fairer duty". "That's what the Drop the Duty! campaign is about. We've got to sustain the momentum from last year," he told Harpers.

It was down to everyone in the trade to tell the story about how important the drinks industry is to the UK economy.

"It really is huge. The spirits industry in the UK represents 18% of employment across the spirits industry in Europe. That hasn't really been recognised, and we've got to look at that. As for wine, our growing industry is keeping people in areas that are being stripped of their population," he explained.

The WSTA, he said, would be working harder to attract a wider membership base and was hoping to bring in more English wine producers, mid-sized retailers, independent merchants and craft distillers. "We need to broaden our base."

He conceded it won't be easy but it was important to sit down with people and explain the work the WSTA does. "Some people will only be attracted provided someone of note contacts them directly," he said.

O'Flynn believes a lot of drinks businesses don't understand the work and value of the WSTA. "When you think of Packaging Recovery Notes [the trade has saved around £50 million in glass recycling fees in the last year after a WSTA-led campaign sought to cut spiralling costs], that was very significant. Everyone benefited from our campaign."

He added: "I'm now asking, why don't you become part of it? If you want your messages heard in the right places, we can articulate them better than anyone else. And it works both ways: our credibility is increased from having broader alliances. It's a virtuous circle."

O'Flynn argued 2015 was a critical year for the sector and that whoever comes out top in the General Election the industry needs to assure its voice is being heard.

"We have to keep an eye on what the next administration might look like after the General Election in May. I'd like to see reform to encourage banks to lend. New spirits producers won't have anything of great value out within four - or even 10 - years. Similarly, if you start planting vines now they won't be producing anything of note for five or 10 years. How can you ask a financial institution to lend based on that?"

* Subscribers can read the full interviw with O'Flynn in our People section.

 

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