A scarcity of warehouse space because of Christmas demand and the pandemic is putting the U.K. at risk of shortages of some food products as it prepares to leave the European Union’s single market. With five weeks to go before the end of the Brexit transition period, large manufacturers and industry groups are warning that the capacity of the food supply chain is at its peak and can’t withstand any further shocks.
Unilever, the maker of Ben & Jerry’s ice cream and Hellmann’s Mayonnaise, said it is building up stock of key lines but “warehouses are absolutely full.” Like rival Nestle, the maker of Kit Kats and Nescafe coffee, maintaining supply of finished products and ingredients is now the priority as talks between Britain and the EU on a trade deal remain deadlocked. Yet that’s “with stock building more difficult at this busy time of year,” Nestle said.
There have been numerous warnings about potential Brexit disruption from companies and even U.K. ministers, such as lines of trucks on the highway regardless of whether there’s a trade deal or not. The trouble is that the latest contingency planning couldn’t come at a worse time as Christmas goods take up storage space.
People in the food industry say it’s likely there could be some shortages of key brands and ingredients made in the EU, which supplies Britain with everything from tinned tomatoes and olives to wine and baby food in foil pouches. Even with an accord, some food prices are also likely to rise.