Cadbury prepares for Brexit snack shortage

Cadbury MilkConfectionery giant Mondelez International has decided to stockpile ingredients, confectionery and biscuits due to Brexit.

“Like the whole of the food and drink industry in the UK, we would prefer a good deal that allows the free flow of products as that would have less of an impact to the UK consumer,” Mondelez Europe president Hubert Weber told The Times.

“However, we are also preparing for a hard Brexit and, from a buffering perspective for Mondelez, we are stocking higher levels of ingredients and finished products, although you can only do so much because of the shelf life of our products. We have a contingency plan in place to manage …  as the UK is not self-sufficient in terms of food ingredients, so that could be a challenge.”

Reuters also reported that a Mondelez spokeswoman said via a statement that the company is currently “monitoring the political decision-making process and preparing for a number of potential outcomes. We stand by Hubert Weber’s comments and have nothing further to add at this time.”

Mondelez’ Cadbury factory processes cocoa in a plant in Chirk, Wales. It uses milk and sugar to create the base chocolate product – chocolate crumb – in Marlbrook, Herefordshire. While the milk is sourced locally.

Pharmaceuticals and manufacturing businesses have also begun or are planning to begin stockpiling their ingredients to deal with possible shortage, according to Reuters.

“With uncertainty prevailing around the UK’s post-Brexit trading position, stockpiling could help some businesses to mitigate possible supply shortages,” said Mark Waterman at Vendigital, a consultancy that helps companies to prepare for Brexit. “However, stocking high levels of raw materials could put pressure on cash flow.”

The Centre for Economics and Business Research also predicted this week that the UK’s imports could lift by 38 billion pounds if companies will stockpile a three months’ worth of raw materials and semi-manufactured goods from the EU and a month’s worth of finished goods.

Several consumers have also posted their thoughts on Twitter regarding the situation in Europe regarding Brexit and its effect on food and other products.

South China Morning Post reported that the British police have reportedly created some contingency plans for civil unrest in case the country crashes out of the EU, due to fears of possible shortages of food and goods.

“We have a contingency plan in place to manage … as the UK is not self-sufficient in terms of food ingredients, so that could be a challenge,” said the police.

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