UK foodservice supplier Apetito has revealed it has spent GBP5m (US$6.4m) on extra stock as a hedge against the possibility of a no-deal Brexit.
The company, which supplies food to the health and social care sectors, said its key aim is to “optimise its ability to supply customers, many of whom are elderly and vulnerable people, in hospitals, care homes and their own homes”, in the event of the UK leaving the European Union on 29 March without a deal.
Apetito said it will be increasing stocks of “high risk” raw materials and finished goods. Its plan has been developed following analysis of the company’s raw material and packaging supply chain, involving the 700 or so items it purchases to make its products.
Raw material stocks of the “high risk” items will be increased from four to eight weeks while finished goods stocks are being raised from an average of five to six weeks.
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To accommodate increases, Apetito has contracted additional storage for the next six months, at a cost of more than GBP100,000.
Paul Freeston, chair and CEO of Apetito’s businesses in the UK and Canada, said: “Given the level of uncertainty, we are investing heavily in a contingency plan to protect our customers. We are proud to serve some of the most vulnerable in society and we are determined to do everything we can to maintain supply.
“Meanwhile, we believe it is essential the current political stalemate is resolved so the food and farming industry can get on with its job of feeding the nation. This, in turn, requires frictionless trade with the remaining EU members, who form a vital part of the UK supply chain.”
