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Mars Products Set For Substantial Brexit Price Hike: President

By Steve Wynne-Jones
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Mars Products Set For Substantial Brexit Price Hike: President

The latest storm arising from Brexit comes from Mars' president of global food and drinks, Fiona Dawson. She has claimed that the added cost created by post-Brexit trade barriers will almost certainly ensure that its products will see a substantial price hike.

These tariffs, under World Trade Organisation rules, would be in the order of 2o% for meat and other animal products, 15% for all cereals and 10% for fruit and fish.

In her speech to the American Chamber of Commerce, Dawson claimed that these tariffs would have an impact on the supply chain and create a serious threat to jobs.

Rising costs, shrinking economy

With the pound sterling falling in value, British manufacturers have seen knock-on price increases on the cost of raw materials such as sugar and grain. With retail prices generally fixed a year in advance, shops have been unable as yet to pass these costs onto the consumer.

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The Financial Times claimed that some companies have resorted to 'shrinkflation', reducing the size of the packages in order to overcome fixed prices.

The UK's Food and Drink Federation published a report last week showing that business confidence continues to fall in the UK, with manufacturers putting this down to the increased cost of raw materials, slimmer margins and a general uncertainty regarding the impact of Brexit.

Confectionery targeted

Mars may have reason to be particularly concerned. Part of the anticipated tariffs is a 30% tax on confectionery, causing a real impact on Mars' ability to trade with its neighbours.

© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Gavin Ryan. Click subscribe to sign up to ESM: The European Supermarket Magazine.

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