SUBSCRIBE

Breaking News on Industrial Baking & Snacks

Read more breaking news

 

 

Have your cake and eat it: The Brexit effect on bakery and snacks

Gill Hyslop

By Gill Hyslop+

31-Mar-2017
Last updated on 31-Mar-2017 at 14:42 GMT2017-03-31T14:42:20Z

Brexit will have far-reaching effects on the British food industry, according to Liberal Democratic Nick Clegg. Pic:©iStock/mrdoomits

Brexit will have far-reaching effects on the British food industry, according to Liberal Democratic Nick Clegg. Pic:©iStock/mrdoomits

BakeryandSnacks asked exhibitors at ife 2017, held in London at the beginning of March, what effects Brexit may have on their companies.

UK prime minister Theresa May officially triggered Article 50 on Wednesday, opening the doors of uncertainty within the food and drink industry, according to exhibitors at ife 2017.

“Nobody knows what the outcome of Brexit will be, but I am certainly very nervous about it,” said James M Walker, of Walkers Shortbread Limited.

Ian Wright, director general of the Food and Drink Federation, said currency devaluation will be the biggest problem.

Erwan Inizan, sales director of Bridor UK & IE, concurred, saying that currency fluctuations were already effecting the French bread bakery giant.

And while prices may not “catastrophically increase, all sectors will have to face price increases,” added Wright.

Unique crunchy pasta snack Pastino’s MD, Giuliano Mai said: “It’s going to affect small companies, like ours, that import raw materials, particularly from the EU.”

The good and the bad

According to Brexit-critic and former deputy minister of the UK, Nick Clegg, Brexit will have far-reaching effects on the British food industry.

While some manufacturers will hope that Brexit leads to the opening of new markets, the reality is that exporting will become more complicated and difficult in the short term, he wrote in his third Brexit challenge paper,  published in October 2017.

Matthew Ford of pork scratching-maker Mr Trotter Ltd (and Great British Menu judge) agreed it will make the possibility of expanding into Europe more difficult.

Wright also noted it will have a big influence on dealings with Ireland, which is “massively our biggest export customer”.

Consumers feeling the crunch

Clegg also wrote that consumers will have to get used to higher prices even beyond the impact of the falling value of the pound.

Brexit reader survey results

BakeryandSnacks ran a reader survey last year inviting readers to share their views on the Brexit vote.

However, NI André Chong, MC of Manning Implex, said Brexit offers a “unique challenge” as you can’t just pass currency fluctuations onto the consumer.

On a positive note, many of the ife exhibitors said Brexit was a reality that has to be accepted.

Both Tony Goodman, CEO of Ten Acre, and Jenna McDill, business development of Orkney Bakery said that “we all have to just get on and embrace it”.

‘Smoked’ and ‘burnt’ among flavors driving snacks: Mintel

‘Smoked’ and ‘burnt’ among flavors driving snacks: Mintel

The more unusual the flavor, the more likely a snack producer will capture another...

Millennials want to smell the source of their savory snacks: Kerry

Millennials want to smell the source of their savory snacks, says Kerry

Millennial snackers consider aroma essential and want their snacks to evoke immediate sense of...

Brazilian peanut processor Brumau courts European markets

Brazilian peanut processor Brumau courts European markets

Brazil’s largest peanut producer and oilseed processing company, Brumau is aiming to expand into...

Aptean’s ‘Factory suite’ streamlines snack factory operations

Aptean’s ‘Factory suite’ streamlines snack food factory floor operations

Aptean has developed the Factory Manufacturing Execution System (MES) suite of wireless automation programs...

Ancient grain genome breakthrough advances struggle for food security

Ancient grain genome breakthrough advances struggle for food security

A group of international scientists has identified the complex DNA sequence of Wild Emmer,...

Palsgaard removes PHOs from baked goods with new emulsifiers

Palsgaard removes PHOs from baked goods with new emulsifiers

Rose Regalado

General Manager , Palsgaard

Snack makers moving beyond pure indulgence to functionality: ESA

Snack makers moving beyond pure indulgence to functionality, says European Snacks Association

The sensible snacking concept is evolving at a rapid rate, said Sebastian Emig, director...

Arla extends protein bar shelf life with clean label ingredients

Arla extends protein bar shelf life with clean label ingredients

Troels Laursen

Business unit director of health and performance nutrition, Arla Foods...

Corbion's trans fat-free emulsifiers allow manufacturers to 're-engineer' cakes

Corbion's trans fat-free emulsifiers allow manufacturers to 're-engineer' cakes

"The conversion away from partially hydrogenated oils is really an opportunity to re-engineer cakes...

Bread hit hard by price wars

Bread is ‘price war casualty’ – FoB director

Bread is one of the biggest casualties of the supermarket price war, as retailers...

food packaging, business, women

How to be a successful woman in the packaging industry

Passion, determination and ambition: all top tips for aspiring businesswomen, say three senior Swedish...

NPD category busters: From ‘Teagurt’ to coffee fruit energy to Milo expansion

NPD category busters: From ‘Teagurt’ to coffee fruit energy to Milo expansion

Jane Barnett

Insights manager for Australia-New Zealand, south east Asia and India,...

USDA WASDE: Wheat supply up but ‘quality issue emerging’ says AHDB

Wheat supply up but ‘quality issue emerging’

Wheat supplies have hit record levels across the globe, but for France and some...

UK gluten-free businesses should storm Europe

Europe is ripe for UK gluten-free businesses

France and other European countries are prime targets for the UK’s established gluten-free (GF)...

Manufacturers are struggling with healthier food calls

Bakeries struggling with calls to cut salt, sugar and fat

Manufacturers of baked goods are reaching a point where calls to cut salts, fats...

Thins in packaged bread could spark growth, Mintel

Can ‘thins’ save a dwindling packaged bread sector?

‘Thins’ have taken off in the US and Canada with bread, bagel and even...

Bread innovation needed amid carb, additive backlash: Mintel

Additives and carb backlash stumps bread innovation, says Mintel

Stephanie Pauk and Pam Yates

Analysts, Mintel

Key Industry Events

 

Access all events listing

Our events, Shows & Conferences...