We must all add value

Those returning to these shores after an August break will find not too much has changed. Barak Obama is back on the front pages, football has replaced the Olympics has the main sporting debate of the nation and the weather is as dark and gloomy as when you left.

The state of the country's economy is no better either, in fact, if anything, it is getting worse. The economists are now upscaling the so-called credit crunch to talk of a full blown recession. The gold medal exploits of our Olympic heroes may have kept the doomy predictions of the front pages for the last couple of weeks, but they are now back with a vengeance.

So we thought we would add to the mood by taking our own look at the specific factors that are threatening to take a grip of the UK drinks, retail and hospitality sectors. Whilst the overall prognosis makes for a challenging read it is clear there are some common issues that a shared approach could go some way to addressing.

Whilst factors such as currency rates, fuel costs and the price of key raw materials remain out of our control, issues around pricing levels through the supply chain, particularly to the consumer, and the ways we actually run our respective businesses are.

But, as we also explore this week, the issue of business costs can also be determined by how many layers of management are employed in the process of getting drinks from A to B. The role of the "middle man" in the drinks industry is increasingly coming under the spotlight as those paying them from either end of the supply chain start to question what real value they are adding to the process. Whilst there are clearly pivotal roles in getting a product from some distant winery or distillery to the end customer there are other service roles that in difficult times could be seen as dispensable.

What those are will depend on your business' prime objectives, but it is only right that those paid to provide a service are held to account. We can all help each other get through this economic downturn by ensuring we deliver what we say as efficiently and as competivitely as possible.

Richard Siddle is Editor of Harpers Magazine

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