Consumers continue to snub beer; UK wine industry enjoying record demand; quick expansion realistic without effects on working capital

WINE Production has reached an all-time high in the UK with demand for British-grown varieties boosting the export market, too.

The volume of UK-produced wines increased by 64 per cent in 2017, with the figure set to increase further in 2018 as both domestic and overseas markets look to quench their thirst for the drink.

Production of wine increased by 18 per cent in July 2018 alone, while gin production increased by 9 per cent in the same period.

Imports of international wines also increased, but by only 2 per cent, compared to the more remarkable domestic gains that firmly usurped their overseas counterparts.

UK winemakers need to invest to supply quickly increasing demand

The UK enjoyed record-breaking summer temperatures, which is set to herald the 2019 harvest as the earliest and most successful..

Camel Valley Vineyard in Cornwall became the UK’s first vineyard to obtain a Royal Warrant, while the improved climate has led four French companies investing in the UK wines and spirits industry.

Investment was cited by the Wines and Spirits Trade Association (WSTA) as a reason for the growth seen contemporarily, with the need for further investment key to placating consumer and trade desires going forward: Portman Asset Finance can be the key to unlock this potential.

Sales have increased quickly, therefore more equipment will be an imperative need for UK wine and spirit producers going forward – with interest rates available as low as 2.5 per cent, Portman has the experience in keeping rates low through its use of exclusive, industry-expert account managers.

Investing vital working capital into these new ventures and assets is not a necessity for businesses; the alternative actually involves your company saving money.

Buying an asset outright could lead to overdraft facilities — which are terminable — being utilised and impacting on cash flow, notwithstanding the cost of using working capital to purchase day-to-day consumables.

New tractors, bottling machines, kegs, or liquosystems will need to be purchased with the current increasing demand unceasing at this time – this can be done in less than three working days with Portman.

The cost of such hard assets can cost tens of thousands of pounds, while soft assets like having improved, more robust and higher capacity IT software will be needed and will cost thousands, too.

Expansion is not cost intensive; you can enjoy a relief to your tax burden, while spreading the cost of the assets over a period of years allows you to fulfill your business ambitions and cater for the growing UK wine sector.

Demand for wine from Uk vineyards at all-time high

It is imperative that hard and soft assets are invested in to boost UK wine industry – thanks to record demand.

 Why is asset finance lucrative for businesses?

UK companies can enjoy aforementioned interest rates as low as 2.5 per cent and 19 per cent reductions in tax liabilities, which will actually save your business money.

Working capital will be maintained thanks to production not being impacted by the purchasing of consumables and other goods.

Multiple policies are not of concern either. Businesses that already have finance agreements enacted can refinance agreements, while new arrangements can utilise hire purchase and lease and traditional business loan arrangements.

The wine, gin and spirits industry is enjoying buoyancy that reaches beyond the current climate-induced upward trajectory. Demand for the drink as a whole ensures that not investing in either supply chain, logistics, vehicles, consumables, IT infrastructure, staff and bottling equipment will stymie growth.

It’s easy to invest in your wine or other business using asset finance

Finance can be approved on the same day as application and all assets can be in place within a few days, ensuring that your business maintains optimal productivity, growth and cash flow.

Head of Marketing at Portman Asset Finance Mark Kozo explained why it is crucial for those involved in the wine production sector to invest using asset finance. He said: “Brits are continuing to snub beer and with a record-breaking harvest set to follow this year’s, earlier in 2019, investment will be vital to facilitate increased growth.

“With asset finance, your business does not have to worry about cash flow problems and can reduce tax burdens, creating the instant capacity to expand your output amid times where demand for wine is at an all-time UK high.”

Portman Asset Finance works with over 40 of the UK’s most prestigious and appraised lenders, using syndicated deals to provide you with interest rates unobtainable through approaching a lender directly – providing businesses with nearly £700 million in funding as an asset finance company.



Portman Asset Finance