Brexit Preparations

Wednesday, 23rd January 2019

Over the past few months the directors have been assessing the potential impact of Brexit on Indigo Wholefoods.  It has come to the attention of the directors that a few customers are beginning to buy extra produce in preparation for Brexit on 29th March 2019.  Therefore, the time has come to let customers know what the directors anticipate will be the impact of Brexit on Indigo Wholefoods and how Indigo Wholefoods will respond to it.

At 11pm on Friday, 29th March 2019 one of three things will happen. Each will have a different impact on Indigo Wholefoods.

  1. UK does not leave EU because Brexit is cancelled or delayed. This will result in no interruption to supply.  The directors currently consider a delay to be the most likely, hopefully in advance of a full cancellation.  If Brexit is not ultimately cancelled options 2 or 3 will eventually occur.

 

  1. UK leaves the EU with an agreed withdrawal arrangement. This will result in no interruption to supply.  The withdrawal agreement allows for a 21-month transition period which may be extended.  The directors currently consider that leaving with an agreed withdrawal arrangement on 29th March 2019 is least likely to happen.  It may happen after a short delay.  If the UK enters a transition period either on 29th March or shortly after the directors will update customers to the implications of leaving the transition period towards the end of the transition period.

 

  1. UK leaves the EU without an agreed withdrawal arrangement. This may result in interruption to supply.  There will be no interruption to supply of fully UK grown/produced and processed goods.  The possible interruption to supply of other goods will not be immediate as there will be some supply both in the shop and in the UK at our wholesalers.  The interruption may affect imported finished goods and imported ingredients to be made into finished goods in the UK.  This will be because of delays occurring at customs on arrival into the UK.  This will impact goods coming from the EU and outside of the EU due to delays in customs processing at ports.  There is also the potential for price rises as a result of tariffs being applied to these imported goods and ingredients.  The directors currently consider that leaving the EU without an agreed withdrawal arrangement is unlikely but may occur due to intransigent political positions.

 

In preparation for the possibility of leaving the EU without an agreed withdrawal arrangement the directors will be increasing stock-holding of the most popular impacted goods.  This action will begin in mid-March if it is still necessary.  Unfortunately, it will not be possible to increase stock-holding or guarantee an uninterrupted supply of fresh organic fruit and vegetables

For customers who are considering buying extra produce in preparation for this outcome the directors make the following recommendations:

  1. Don’t panic – the chances of leaving without an agreed withdrawal arrangement in place are still slim.

 

  1. Wait – there is still plenty of time to wait for the Brexit situation to become clearer before making decisions of this nature.

 

  1. Plan – consider which products you would like to ensure you have extra supply of and when you want to start stocking up.

 

  1. Talk to us – we can let you know if the products you are concerned about are likely to be impacted by this scenario.

 

  1. Make a special order – our staff will be happy to place a special order for your chosen product or products and offer you our best price. If you make a special order it helps us to plan and ensure that we have enough stock for you and for the rest of our customers.

 

The directors will be continuing to assess the likely outcomes, the implications for Indigo Wholefoods and the supply of produce over the course of the next few months and longer if necessary.  Customers will be updated as the assessment changes, if it does.

George Howell