Action urged on inflation after brewery relocates

Jersey Hospitality Association co-chief executive officer Marcus Calvani wants the government to address inflation

Rising costs must be addressed or more businesses could close or leave the island, hospitality bosses have said.

It comes after Liberation Brewery announced it would stop production at its St Saviour site and move it to Somerset.

Jersey Hospitality Association co-chief executive officer Marcus Calvani urged the Government of Jersey to take action on costs and inflation because "it's not profitable to operate on the island".

The government said it was providing millions of pounds in support to businesses as part of its Better Business Support package.

Mr Calvani said the closure of the 154-year-old brewery was a "sad moment" for the island.

"Communities are often built around these breweries and it's certainly played an enormous part of community life in Jersey," he said.

However, he said after speaking to directors at the company it was clear to him it "makes total sense" to relocate "from a business standpoint".

"We need to squash these base costs, we need to stop the inflation or we will see many other businesses choosing to relocate or shut because it's not profitable to operate on the island," he said.

He said the hike in water bills, announced on Monday, was an example of the rising financial burden.

"In brewing you use about four pints of water for every one pint of beer, so water has a huge impact, then there's electricity, labour costs have gone through the roof, rent is expensive," he said.

Matt Topman of Stinky Bay Brewery said the closure was "a shame"

Matt Topman, one of the founders of Stinky Bay Brewery, said they would soon be the only brewer left in the island and it was "a shame to lose such a longstanding brewery".

Asked if his business would benefit from the departure, he said: "I don't know that we will.

"Liberation Group will continue running their pubs. It's not opening up a new market for us, it just means we have fewer brewing friends on the island."

Mr Topman said the cost of shipping was a problem but he also acknowledged many UK breweries were closing or consolidating.

"If people stop drinking local products or supporting other local businesses, you just end up with a few larger companies," he said.

"It's a shame for it to have left Jersey."

The BBC asked the government's economy department for a response to industry concerns.

It said it had set aside £20m to help businesses and was focused on strengthening productivity nurturing skills and ensuring every sector had the tools it needed to thrive.