Bakkavor Identifies Possible Brexit Impacts To Business
Fresh prepared foods manufacturer Bakkavor has published its annual report, identifying a number of areas in which Brexit could pose a risk to the business.
The group said that the risk of raw material and input cost inflation has 'marginally increased due to ongoing uncertainty around Brexit', and has sought to put in place forward purchasing models and cost reduction programmes to mitigate this risk.
In terms of manpower scarcity, Brexit concerns pose a greater risk, the company said, as 'historically the Group has employed a material number of citizens from elsewhere in the European Union', it said.
To mitigate these challenges, Bakkavor has put in place measures to recruit future employees and build the attractiveness of careers in the food industry, as well as upgrade its facilities.
Thirdly, Bakkavor cited potential disruption at UK ports as an 'increased risk' resulting from Brexit, 'especially with short life raw materials, which ultimately might impact sales volumes'.
It said that it has obtained AEO status, 'which should help us streamline and simplify our import processes', and is also exploring longer-life packaging and increased raw material stocks.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.