Food giants Kellogg and Mondelez International are the latest companies to admit to stockpiling products ahead of Brexit, the UK’s official departure from the European Union.
Speaking ahead of the CAGNY food and consumer products event in Boca Raton, Florida, the companies said they are taking measures to prevent a shortage of products in the event Britain leaves the EU on 29 March without a trade deal.
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News agency Reuters reports Kellogg chief executive Steve Cahillane as saying the company is also working with suppliers to make sure it has enough raw materials at its plants.
“We’re making plans and spending real money to mitigate the impact. That’s things like opening new warehouses, building inventory, and preparing ourselves in the best possible way,” he said.
Cahillane said Kellogg’s supply chain left it exposed. For instance, Pringles, the UK crisps brand, are made in Belgium.
Meanwhile, Mondelez CEO Dirk Van de Put told Reuters it has increased warehousing and transportation capacity in the UK, and has been stockpiling all its European-made products, which include BelVita biscuits and Milka chocolate.
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By GlobalData“Roughly, we’re expecting interruptions to product flow for three to four weeks,” he said.
Away from CAGNY, another food business, Ireland’s Kerry Group, has told reporters it fears “grave consequences” for Irish food producers if Britain leaves the EU without a trade deal.
Kerry said it has stockpiled several weeks’ supply of raw materials in case of a no-deal.
