Mars Bars face UK supply shortage in the event of no Brexit deal

Mars Bars could run out of supplies in the event of a ‘no-deal’ Brexit, according to warnings made to environment minister Michael Grove by the Food and Drink Federations (FDF).

The two brands’ 20 ingredients are imported from mainland Europe and reportedly can go off in a matter of several days, so a failure of the British government to reach an agreement with the EU could cause major supply issues.

This has been reflected by the FDF’s latest business confidence survey reveals that over a third (38%) of food and drink manufacturers surveyed are reporting and increase in costs as a result of stockpiling ahead of a possible ‘no-deal’ Brexit. National media in the UK have reported a corresponding rate of activity witnessed by storage facilities, as businesses prepare themselves for any eventuality surrounding the UK’s expected departure from the EU.

According to the federation’s latest quarterly survey, there has been a significant decline in business confidence amongst food and drink manufacturers during 2018. Economic uncertainty has seen net confidence amongst food and drink manufacturers decrease by 21% when comparing results reported in Q1 with those in Q3.

When looking ahead to 2019, two thirds of businesses FDF spoke to identified future tariff implications as a risk to their business. Just under 60% of businesses surveyed thought business investment across the overall UK economy would fall in 2019, whilst more than 96% expect to see rising input prices.

“These results tell us just how seriously the food and drink industry, the UK’s largest manufacturing sector, takes a ‘no-deal’ Brexit. It is a grisly prospect to which we edge closer every passing day,” said Ian Wright CBE, FDF Chief Executive.

“There is significantly increased worry across the sector following the announcement of the Chancellor’s new tax on plastic packaging. This will undoubtedly place many more financial burdens on UK food and drink manufacturers that load on coast at a time when just under three-quarters of our members report that their packaging costs are increasing.”

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