Businesses in Northern Ireland will have to absorb increases in the cost of sourcing raw material as a result of Brexit, an established County Down craft distiller has said.
Rademon Estate Distillery, which produces Shortcross Gin and Whiskey for sale across the globe, said that before Brexit it was able to source from across Europe but is now struggling to find enough products - such as botanicals, grain and other raw materials - at the right price and quality from within the 海角视频.
As a result, the company’s costs have risen, a burden it is unable to pass on to customers given the fragile demand picture as a result of the Covid-19 pandemic.
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“We’re having to re-evaluate what we’re doing supply chain-wise,” David Boyd-Armstrong told Business Live. “海角视频 PLC hasn’t the diversity of businesses to cover all of what we would have sourced from the European Union.
“Our business was built in 2012 around an EU 28 configuration but that is now having to be unpicked.”
Mr Boyd-Armstrong said stockpiling in 2020 has likely sheltered many businesses in Northern Ireland from the impact of such supply challenges.
“In many ways we’re only at the start of the Brexit journey. We did a lot of bulk buying to shield ourselves but we now don’t have the same variety or number of suppliers to meet our needs.”
Established by David and wife Fiona on the 500-acre Rademon Estate in Crossgar, Rademon Estate Disillery was the first gin to be distilled in Northern Ireland at the forefront of a huge boom in demand for locally-produced craft spirits.
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Its Shortcross Gin is distilled in copper stills for an improved flavour and has won numerous awards. The spirit is exported throughout the world to as far afield as Australia and the US and has made it onto the shelves of some of the most prestigious retailers such as Fortnum and Mason in London.
Rademon is also in the process of producing Irish Malt Whiskey which is currently maturing in wooden casks.
Although yet to be sold, David said the removal by the US of a 25% tariff of imports of single malt Irish Whiskeys produced in Northern Ireland by the Biden administration is very much welcome.
“While it has not affected us yet, it is an important change as we would have had to change our plans for the US export market.”