Greggs have announced that they have begun stockpiling pork – as well as building up supplies of other “key ingredients” and obtaining certain pieces of light machinery – as part of preparations for Brexit.
The beloved pastry giant said “We are preparing for the potential impact of the UK’s departure from the European Union”, and that the equipment being acquired is any that “could be affected by disruption to the flow of goods into the UK”.
Firms are still nervous about the stability of the UK’s future relationship with Europe.
The news was put into new light by Boris Johnson’s Brexit deal which, despite being voted down, seemed to confirm that firms are still nervous about the stability of the UK’s future relationship with Europe. Ford and Honda both plan to close UK plants, Sony are moving their European headquarters from the UK to the Netherlands, and HSBC are considering sending sizeable portions of their workforce overseas.
“Greggs’s apprehension about Brexit shouldn’t come as much of a surprise”
Greggs’s apprehension about Brexit shouldn’t come as much of a surprise- the source of their anxiety, especially in the case of a no deal, is relatively easy to understand. Being in the EU makes it easier for UK businesses to forge supply chains with companies in other member states, whose logistics are often fine-tuned with a minimal margin for error (the most notable example – which is far from exclusive to the EU – being “just in time” production). In addition to it being harder to create those supply chains, it is also feared that, as Brexit will put a stop to free movement of labour for the UK, labour costs may spike, another eventuality that could be problematic for Greggs.
As the world of business watches the 31st October Brexit deadline approach with bated breath, Greggs are taking drastic preparatory action.
Last modified: 29th October 2019