The King’s wine supplier Berry Bros. & Rudd has blamed the rise in National Insurance rates and “extremely challenging” trading for a round of redundancies.
The 327 year old company, which has has a store at 3, St James’s Street since 1698, has entered into a redundancy consultation with 30 employees, according to industry news website Drinks Business.
In a statement CEO Emma Fox said in a statement that “extremely challenging global market conditions” as a factor in the company’s decision.
She also cited the planned increases in national insurance (NI) contributions, announced by Chancellor Rachel Reeves in the 2024 Autumn Budget.
The NI rate will increase for employers from 13.8% to 15% in April 2025. The threshold at which employers start paying NI will also decrease from £9,100 to £5,000.
Fox said : “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.
“As such, we have recently entered into a consultation process with colleagues across 30 roles. We are doing everything we can to support all of our dedicated colleagues and especially those affected by this announcement.”
Fox had previously warned that the proposed 50% reduction in business property relief - which allows family owned businesses to pass down assets tax free - was a “body blow” to the business.
The company currently employs around 400 staff members around the world. It has been supplying the royal household since 1760 and was awarded its first royal warrant from King Edward VII in 1903. It currently holds a .warrant from the King.
It is understood that the consultation will affect roles across all departments. This is the first major restructure by the company since 2016, when Berry Bros. & Rudd shook up its business in Asia and the UK.
Latest results from the company covering the 12 months to 31 March 2024 show sales falling 3.3% to £246 million. It made a loss before tax and exceptional items of £1.2 million, down from a profit of £9.5 million the previous year.
