A Cheltenham-based drinks business, Gravity Drinks, has celebrated a significant milestone with a £4.5 million export deal, facilitated by UK Export Finance and HSBC. This achievement underscores the UK government’s commitment to supporting British exporters.
UK Export Finance: A Catalyst for Export Success
UK Export Finance (UKEF) has once again demonstrated its pivotal role in advancing British exports. In a recent press release, the UK government announced that Gravity Drinks, a Cheltenham-based business, has secured a £4.5 million deal to meet the high overseas demand for their products.
This deal is a testament to the UK government’s efforts to ensure no viable UK export fails due to lack of finance or insurance. UKEF’s support is crucial in sustaining the growth of the British drinks industry, which has seen significant expansion in recent years.
For instance, UK drinks exports jumped 13% last year, reaching £9.4 billion, with spirits like whisky and gin leading the charge.
The Role of HSBC
HSBC played a vital role in this transaction by providing the necessary financial backing. This collaboration between UKEF and HSBC highlights the effective partnership between government agencies and private sector institutions in fostering export growth.
Impact on the British Drinks Industry
The success of Gravity Drinks is part of a broader trend in the UK drinks industry. The industry’s focus on premium products, such as whisky and gin, has attracted wealthy consumers globally, particularly in markets like India and Singapore.
As Rebecca Copping, Partner at Hazlewoods, noted, “British heritage brands have successfully placed themselves as a luxury in the international drinks market, drawing in young, wealthy consumers purchasing quality drinks brands that signify status and success”.
Market Expansion
The UK government’s support through UKEF is essential for expanding into new markets. For example, India has become the largest global market for Scotch whisky by volume, but the industry faces significant tariffs. A UK-India free trade agreement could address these barriers and further boost exports.
Benefits of UKEF Support
- Ensures no viable UK export fails due to lack of finance or insurance.
- Provides financial support for overseas projects.
- Facilitates partnerships with private sector institutions like HSBC.
- Supports the growth of key UK industries, including the drinks sector.
- Operates at no net cost to the taxpayer.
Quick view:
Category |
Value/Percentage |
|---|---|
| Total UK Drinks Exports | £9.4 billion |
| Growth Rate | 13% |
| Scotch Whisky Exports to India | £1 billion+ |
| Scotch Whisky Tariff in India | 150% |
Final Thoughts
The £4.5 million deal secured by Gravity Drinks with the support of UK Export Finance and HSBC is a significant victory for the British drinks industry. As the UK continues to navigate global markets, the role of UKEF in facilitating export success will remain crucial.
This story not only highlights the government’s commitment to exporters but also underscores the resilience and growth potential of British businesses on the international stage.
Sources: THX News & UK Export Finance.
