Mondelez, the US-based spin-off from Kraft, is to return production of many Cadbury-branded chocolate bars to Bournville. To ease the takeover in 2010, Kraft had given an informal undertaking that it would retain all production in the Midlands but lost no time in shifting production to cheaper facilities on the continent once it had control. Clearly, the additional red tape involved in importing the goods from the EU as a result of Brexit would nullify the advantages of cheaper production and Mondelez would not want to lose the lucrative British market.
The immediate losers - apart from those interested in public health combating obesity - would seem to be the other brands which have no factories here and the supermarkets' own-label bars which rely on the bulk chocolate provider Barry Callebaut.
The specialist manufacturer Hotel Chocolat also has its own factory in England and will see no change in its cost of production because of Brexit. However, it would appear that the company's expansion into continental Europe may well be affected.
No comments:
Post a Comment