Effects from the hard Brexit and the Public Health Alcohol Bill (PHAB) will pose challenges for the drinks sector of the Republic of Ireland according to an economic study.

Representer of brewers, distillers, brand owners, and distributors, ABFI has urged the government to exercise a series of policy measures to minimise the risks of Brexit and decrease the unintended consequences due to some policy measures in the PHAB.

According to the federation, beverage exports to 139 markets totalled around €1.4bn in 2015 and supported 200,000 jobs in a wider drinks and hospitality sector. With an annual wage bill of more than €4bn, the food and drinks sector plays a major role in the economy of Ireland.

Agri-economist and the report author Ciaran Fitzgerald said: "Since the Brexit vote last June and the subsequent decline in the value of sterling, the food and drink sector in Ireland has faced enormous challenges in the short term, including a surge in cross border shopping. 

"Its vital that the government puts in place a series of policy measures, which will support the sector."

"In addition, measures proposed under the Public Health (Alcohol) Bill place will exacerbate pressure on a sector that employs 200,000 directly and indirectly. The outcome of Brexit negotiations remains unclear.

"However, its vital that the government puts in place a series of policy measures, which will support the sector, ensuring it gains access to new markets, supports new entrants, and protects the unique geographic indicators for Irish Whiskey, Irish Poitin, and Irish cream that we share with the North.”

Conducted by Alcohol Beverage Federation of Ireland, the study has recommended some measures be introduced that can help the industry face challenges such as reducing excise duty, re-introducing bans on below-cost selling, and introducing tax and regulatory measures to incentivise companies in the food and drink sector.

ABFI also urged the government to challenge EU State Aid rules to promote future trade with the UK. 

Image: Beverages displayed in a supermarket. Photo: courtesy of Ralf Roletschek/Wikipedia.