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apetito prepares for no-deal Brexit scenario

apetito prepares for no-deal Brexit scenario with £5m investment in additional stock.

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apetito, a leading supplier of food to the health and social care sector, is investing £5 million in its planning and preparation ahead of BREXIT. The key aim is to optimise its ability to supply customers, many of whom are elderly and vulnerable people, in hospitals, care homes and their own homes.
 
Given the level of uncertainty, political stalemate and the consequent risk of a hard Brexit, under which the UK food industry could be severely disrupted, apetito has now implemented its stock contingency plan as set out in its latest BREXIT statement.
 
In the lead up to Brexit, apetito will be increasing stocks of ‘high risk’ raw materials and finished goods, with a working capital cost of £5m. This plan has been developed from a detailed analysis of the company’s entire raw material and packaging supply chain, involving the c.700 items it purchases to make its products.
 
Raw materials stocks of the “high risk” items will be increased from 4 to 8 weeks, finished goods stocks are being raised from an average of 5 to 6 weeks, and to accommodate increases, apetito has contracted additional storage for the next 6 months, at a cost in excess of £100k.
 
Paul Freeston, Chair & CEO of apetito UK & Canada, said, “Given the level of uncertainty, we are investing heavily in a contingency plan to protect our customers. We are proud to serve some of the most vulnerable in society and we are determined to do everything we can to maintain supply.
 
“Meanwhile, we believe it is essential the current political stalemate is resolved so the food and farming industry can get on with its job of feeding the nation. This in turn requires frictionless trade with the remaining EU members, who form a vital part of the UK supply chain.”