A number of British hospitality associations, including the British Beer & Pub Association (BBPA), UKHospitality and the Night Time Industries Association (NTIA) have welcomed the Supreme Court’s recent decision that many business interruption insurance policyholders will be able to claim for losses due to the on-going COVID-19 restrictions.
The Supreme Court ruling is likely to affect 700 types of policy, 60 insurance companies and around 370,000 small businesses and policyholders.
Commenting on the Court’s decision, the BBPA’s CEO, Emma McClarkin, said: “This landmark ruling is great news for pubs and brewers who hadn’t received pay-outs on business interruption insurance thus far.”
Whilst the other hospitality groups broadly welcomed the news, the overall view is that the sector, which has taken the brunt of the coronavirus restrictions, will have a long way to go before hospitality companies are back to pre-lockdown trading.
There was better news from a recent report, A Blueprint for Success in the Ecommerce Space for Alcoholic Beverages, which found that online sales of alcohol in the UK had a “very high internet penetration” (95%) with online sales driven by gifts and special occasions.
The report found that shoppers also tend to spend more online than when shopping in store (25% of shoppers are happy to spend 15% more online) and that almost 50% of UK consumers buy alcohol online at least once a week.
Although the online sales are centred on the UK’s leading supermarket chains (claiming 50% of the market), there is scope for the independent sector to capitalise on this trend.