Brexit consequences to reach UK consumers

The Brexit is a bitter experience, almost like Marmite, the gooey paste-like substance most Brits love to eat and can’t live without either. Marmite disappears from the shelfs of Tesco’s and other Retailers as well as a lot of other products.

The Brexit (UK leaving the EU) arrived at the shelves or the retailers. Of all things the very essence of British spread is subject to the price war. Reason for this being the weak British Pound which significantly dropped after the Brexit-Vote. If you want to learn more about what the Brits have to say about this, search for #marmitegate in social media.


Brexit Consequences

But it is not only Marmite, which is produced by Unilever. The world famous breakfast tea from P & G, products from Dove, detergents from Persil and also ice cream from Ben & Jerry’s are on the list long of products that are currently not available at some of the larger retailers in the UK. The world famous ‘Toblerone’ chocolate bar has an altered shape now and fans are outraged.

Reason for this are increased purchasing costs due to the drop of the British Pound. Unilever for instance is apparently asking 10% more for certain products (like Marmite) and larger retailers (like Tesco) are not willing to pay.

Brexit is happening before March 2017 – Are you ready?

This development adds a completely new view on how companies need to deal with supply chain and supplier risk within the whole Brexit scenario. It doesn’t affect the classic supply chain in terms of disruptions, but cost of production due to increased cost for the products/components which are sourced and contracted outside of the UK.

This whole event happened so fast, nobody was prepared, which lead to the above lack of consumer products in the shelves of retailers. 

Modern supply chain risk management applications could have produced scenarios of the extent of what will happen before the actual event started with your specific supply chain and your suppliers in mind. Along with Supplier Management Solutions, well managed contracts as well as proper supplier and customers relationship management the result would have been more manageable – for both parties.

Is your organization affected by the Brexit? Let us know what you think by posting in the below comments field.

Kai Elsermann as Vice President Sales EMEA at riskmethods is responsible for Sales Development and Sales.
Kai brings extensive experience in software selling including six years in various areas of strategic purchasing and supply chain. He is an expert in focus areas of supplier management and risk management while most recently he served as Business Development Director for Central European activities at Achilles Group Ltd. Previously he worked as Account Manager of Supply Management Solutions for D & B Germany GmbH (formerly Dun & Bradstreet) where he set his focus on the financial risks of supplier portfolios and Master Data Management.

Leave a Reply