Wednesday, 21 Oct 2020

Company to start stockpiling Oxo cubes and Mr Kipling cakes over looming possibility of a no-deal

PREMIER Foods will start stockpiling ingredients and packaging to ensure Britain doesn’t run out of store cupboard favourites such as Oxo stock cubes and Mr Kipling cakes in the event it crashes out of the European Union.

The preparations are the latest by a growing list of companies unsettled by the prospect of a no-deal Brexit.

Premier Foods, which also makes Ambrosia custards, Angel Delight desserts and Sharwood’s sauces, said it would look to build up stocks of finished products in January if it still seemed like Britain was heading for a “no-deal” Brexit.

“If there was a hard Brexit, the issue will be the ports and it will be – in the short-term – the flow of products,” Gavin Darby, the chief executive, said after the firm reported half-year results.

He said the decision to start stockpiling was made a few weeks ago and the company would only build up finished inventories of its key selling products.

Many commodities used by British food manufacturers, such as sugar, wheat and cocoa, are either produced domestically or imported from outside the EU.

Last week, logistics firm Wincanton told Reuters a big food manufacturer had taken up extra storage to stock confectionery and Easter eggs, while a couple of drinks producers were storing beers, wines and spirits.

Cadbury owner Mondelez International said in September it was building up inventories of ingredients, chocolates and biscuits in Britain.

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