Advertise with fastmoving.co.za
 
 

Premier Foods will start stockpiling ingredients and packaging to ensure Britain doesn’t run out of store cupboard favourites.
Premier Foods will start stockpiling ingredients and packaging to ensure Britain doesn’t run out of store cupboard favourites.

Premier Foods moves to Brexit-proof favourite products

RETAILER NEWS

By Arathy S Nair - Nov 16th 2018, 14:09

Premier Foods will start stockpiling ingredients and packaging to ensure Britain doesn’t run out of store cupboard favourites such as Oxo stock cubes and Mr Kipling cakes in the event the country crashes out of the EU without a deal. 

The preparations are the latest by a growing list of companies unsetttled by the failure so far to secure an agreed exit arrangement just four-and-a-half months before Britain is due to leave the EU on March 29.

Premier Foods, which also makes Ambrosia custards, Angel Delight desserts and Sharwood’s sauces, said it would look to build up stocks of finished products in January if it still seemed like Britain was heading for a ­“no-deal” Brexit, which could see trade flows disrupted and tariffs on some goods.

“If there was a hard Brexit, the issue will be the ports and it will be — in the short term — the flow of products,” CEO Gavin Darby told journalists on a conference call after the firm reported half-year results.

Darby said the decision to start stockpiling was made a few weeks ago and the company would only build up finished inventories of its key selling products. He did not elaborate.

The build-up of raw materials could hit working capital in the fourth quarter by up to £10m, Premier said, adding it expected to recoup that cost in the following financial year as the situation normalises.

Many commodities used by British food manufacturers, such as sugar, wheat and cocoa, are either produced domestically or imported from outside the EU.

Logistics firm Wincanton told Reuters a big food manufacturer had taken up extra storage to stock confectionery and Easter eggs, while a couple of the drinks producers were storing beers, wines and spirits.

British tobacco company Imperial Brands said last week it planned to build inventories worth about £30m in 2019 to protect against any Brexit disruptions, while Cadbury-owner Mondelez International said in September it was building up inventories of ingredients, chocolates and biscuits in Britain.

Other sectors, including pharmaceuticals and manufacturing, have also begun, or plan to begin, stockpiling.
Business Live 

Related News

New Look losses mount as Brexit, rain keeps shoppers away
26/06/2019 - 09:03
British fashion chain New Look reported a bigger annual pretax loss, hurt by a large charge, while Brexit woes and rainy weather kept many shoppers out of its stores.

10 Tips to kick-starting an FMCG product in the pharmaceutical space
28/05/2019 - 10:04
I was recently asked to give advice to someone wanting to launch an FMCG product in the pharmaceutical space in South Africa. My short answer was that it would prove tricky at this particular point and time. But of course, there are some tips to be shared from practical knowledge of the business, here are ten of mine.

Winning with sustainability in retail
16/04/2019 - 10:59
While there’s pessimism in the air with regards to global product sales, every day there are also groundbreaking changes being implemented by brands and activists who genuinely want to “be the change” when it comes to sustainability. Influencers and businesses are seeking to establish new markets through innovation, leveraging their ideas and products to help fight climate change.

Confusion around best-before dates causing unnecessary waste
25/03/2019 - 11:14
Confusion around best-before dates is widespread, causing unnecessary food waste. And in a country that's already food insecure, binning good food is not only unconscionable, it's plain wrong.

Award-winning low-carb health food company – MojoMe launches fundraising partnership with The Sunflower Fund
18/02/2019 - 19:18
The partnership between the two organisations will see The Sunflower Fund benefiting from a portion of the proceeds of the sales from two products - the O’ Mega Crunch instant breakfast and the O’ Mega munch instant smooth porridge. The products are easily identifiable with The Sunflower Fund’s logo on the top left corner of the box.