Post Brexit; the good, the bad and the jumping on the bandwagon of price increasesAs a manufacturer, Foodmaker are keeping price increases following Brexit to an absolute minimum. We understand that yes, prices in the market are going up (for how long we don't know) but our customers need stability now more than ever as many of their customers are flat out refusing to take any increases...we have to work as “partners in production” to weather this storm. Where possible we're trying to make savings in overheads, reducing margins, reformulating products and creating innovative ingredients; much like our Garlic Replacement. Though it is interesting to see some suppliers increasing prices by up to 25%, the reason given – Brexit.
Are these companies “jumping on the bandwagon” of price increases? Perhaps. Though these sort of increases may cause severe trauma in the manufacturing industry; Ian Wright of the Food and Drink Federation (FDF) warned that “most [companies] will reach a point where something has to give”. After Sainsbury's ex-boss Justin King warned that grocery supermarket prices were likely to increase 5% in the next six months, it is a challenging time across the industry to try and keep these effects to the end consumer to a minimum.
Though out of every challenge comes an opportunity; increased export activity and presence at international trade shows can result in the greatest gains FDF Director stated. Also with Chancellor Phillip Hammond's first Autumn Statement recently being released, there are many opportunities within that including a £23bn investment in the way of a new National Productivity Investment Fund.
It would be interesting to know more about the increases other companies have been facing, and if suppliers are looking at prices with a fine toothcomb and increasing prices a bit too much following Brexit?
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