It’s impossible to escape the fact that a “No deal” Brexit could be looming. Like many small businesses we’ve found it hard to plan – as we simply don’t know what sort of Brexit we’re planning for. However, I’ve concluded that we need to do something as – regrettably – “No Deal” seems a possibility. This does not mean price increases immediately though…
Our Brexit Planning means holding additional stock of both packaging and ingredients. This will mean that we hope to offer continuity of supply and static pricing during the run up to Christmas.
However, we do urge you to place your seasonal orders early this year. There is a degree of uncertainty and we’d hate you to miss out.
If it all becomes a disaster, we can take comfort in the fact that, in times of uncertainty, we will continue to eat chocolate. It’s a little affordable luxury that makes us feel better!
For those of you who may want more information about how chocolate makers like Coco Pzazz could be impacted by a No Deal in the long run here’s some more detail:
Our little chocolate business is closely linked with Europe and World trade. Cocoa is a commodity, traded in US Dollars then sold in Euro’s to Belgium to be processed and then sold again to us in GB Pounds. Global exchange rates therefore play a big part in the price of our chocolate. Climate change and weather conditions can also impact on the volume of chocolate available – making pricing volatile.
Also – we purchase our packaging under an EU free trade agreement and our chocolate moulds are manufactured in Italy. Our lovely organic flavour extracts are produced in India by a Women’s Enterprise. There is the possibility that there could be delays at ports after 31st October with the need for additional paperwork and potentially tariffs to pay.
As we have maintained our pricing for several years now, despite chocolate price rises of more than 25% during that period, we can’t absorb additional price hikes, so we could be looking at price increases in 2020. We will do whatever we can to minimize them.
Watch this space…..