Proposed Beer Collection

Dear Partner,

We want to keep you updated with regards to LWC Ltd  as a business and the ongoing crisis with regards COVID-19.

We understand that the sudden closure of the On Trade will have left you with beer stock in your cellar. We have been working hard in the background to ensure that we have full agreement from all Brewers that they will not let any partner be left with unopened stock that has passed its best before date.

At this moment in time our business has temporarily suspended operations across all its depots, and placed most of its staff under the government’s Job Retention Scheme to protect jobs. We have kept some staff in full-time employment to assist in organising the credit and collection process. This is a complex process on which we have a team working around the clock.

Our representatives will be in touch with you in due course to accurately record what stock is in your cellar, which will be credited once collected.  We are currently planning this collection process to start as soon as the government will allow and dependent if LWC distribution staff can access your premises within the current social distancing guidelines.

Please note this has been agreed on Beers and Lagers.   All ciders have been excluded due to having a naturally long shelf life.

This process is further complicated by the Government’s ‘Lockdown’ announcement.

On Friday 27 March, HMRC announced they were going to relax the rules on cellar destruction with ‘immediate effect’. This means that they will allow pub staff to destroy beer in order to facilitate getting excise back to brewers - and ultimately for us to get the savings back to you. The British Beer and Pub Association are now currently developing best practice guidance for this, particularly given the environmental considerations of tipping bulk quantities of beer into drainage systems.

 

What do I do next?

- Please do nothing for now, we are still waiting on industry practice guidance – so please do not attempt to destroy any stock on site. This will have an impact on our ability to pass any benefit on to you.

We will be in touch as soon as possible with an update - but given the scale of our distribution, the complexity of tracking, and the requirement for LWC to liaise with other brewers and distributors, this may take us some time to agree. Please bare with us as we work our way through a solution to this. In the meantime, do not destroy any stock on site.

Please see below information on the government assistance for our industry, if not already registered we urge you to register now with your local council

Find your local authority.

Other Useful links

https://www.gov.uk/government/publications/guidance-to-employers-and-businesses-about-covid-19/covid-19-support-for-businesses

https://www.businesssupport.gov.uk/faqs/

Take Care,

Ebrahim Mukadam

Managing Director

LWC Ltd

 

Small business rate relief

You can get small business rate relief if:

The Chancellor has set out a package of temporary, timely and targeted measures to support public services, people and businesses through this period of disruption caused by COVID-19.

Other things to assist partners at the moment.

This includes a package of measures to support businesses including:

  • a Coronavirus Job Retention Scheme
  • deferring VAT and Self-Assessment payments
  • a Self-employment Income Support Scheme
  • a Statutory Sick Pay relief package for small and medium sized businesses (SMEs)
  • a 12-month business rates holiday for all retail, hospitality, leisure and nursery businesses in England
  • small business grant funding of £10,000 for all business in receipt of small business rate relief or rural rate relief
  • grant funding of £25,000 for retail, hospitality and leisure businesses with property with a rateable value between £15,000 and £51,000
  • the Coronavirus Business Interruption Loan Scheme offering loans of up to £5 million for SMEs through the British Business Bank
  • a new lending facility from the Bank of England to help support liquidity among larger firms, helping them bridge coronavirus disruption to their cash flows through loans
  • the HMRC Time To Pay Scheme Support for businesses through the Coronavirus Business Interruption Loan Scheme

The temporary Coronavirus Business Interruption Loan Scheme supports SMEs with access to loans, overdrafts, invoice finance and asset finance of up to £5 million and for up to 6 years.

The government will also make a Business Interruption Payment to cover the first 12 months of interest payments and any lender-levied fees, so smaller businesses will benefit from no upfront costs and lower initial repayments.

The government will provide lenders with a guarantee of 80% on each loan (subject to pre-lender cap on claims) to give lenders further confidence in continuing to provide finance to SMEs. The scheme will be delivered through commercial lenders, backed by the government-owned British Business Bank.

There are 40 accredited lenders able to offer the scheme, including all the major banks.