Berry Bros & Rudd is to make up to 7.5% of its workforce redundant in response to “extremely challenging global market conditions”.
The specialist wine and spirits merchant said it had entered into consultation with 30 of its 400 employees, following a period of declining sales and profitability.
BB&R boss Emma Fox said growing costs, persistent inflation and the recent rise in National Insurance contributions necessitated the reduction in staff headcount.
“Like many businesses, we are having to make some very difficult but necessary decisions in the face of extremely challenging global market conditions, as well as significant cost pressures, high inflation and recent increases in NI contributions,” Fox said. “As such, we have recently entered into a consultation process with colleagues across 30 roles.”
She added: “We are doing everything we can to support all of our dedicated colleagues and especially those affected by this announcement.”
The announcement comes shortly after accounts for BB&R for the 12 months ended 31 March 2024 showed a 77% decline in operating profits and a 51.2% reduction in EBITDA.
BB&R blamed “falls in fine wine prices, increased advertising and promotion investment and significant inflationary pressures” for the dip in profitability.
Sales, meanwhile, slid by 3.3% to £246.0m. The fall was predominantly down to a sales decline in Berry Bros & Rudd’s US spirits import business Hotaling.
BB&R’s core fine wine & spirits business, however, did manage to grow by 0.6% year on year, on the back of increased customer numbers and purchasing frequency. Premium spirits, meanwhile, also performed well. BB&R’s The No.3 London Dry Gin bucked category declines to grow revenues 10.3% year on year,
BB&R brands and UK distribution channels grew by 11.8%, with both BB&R and third-party brands seeing sales growth.
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