Bidfood CEO Andrew Selley has confirmed the foodservice giant will put stockpiling on hold and sell through its contingency goods as Brexit is delayed for six more months.
Selley, who previously attacked the government’s lack of clarity in the lead-up to 29 March, said the company’s contingency plans were now on hold until July, when it will review the situation again.
The additional storage space the wholesaler secured to stockpile in a bid to avoid potential supply shortages will be kept, despite the reserves being run down.
As part of the July review, the company will reassess the need for additional storage space.
Selley told delegates at The Grocer Business Lunch in March that Bidfood had heavily invested in no-deal planning in the run-up to ‘Brexit day’, creating what he described as either “incredibly insightful and planned contingency stock” or a situation where it would be “burdened with excessive working capital”.
In the six months prior to the original March Brexit date, Bidfood had worked with its supply chain partners, EU customs, HMRC, its Belgian consolidator, hauliers and its seaport clearing agent to devise suitable no-deal contingency plans.
“With a six-month delay we will sell through the stock we have bought”, Selley told The Grocer. “We will keep our storage options available and review again in July as to where negotiations have got to and whether we need a contingency for the end of October at that point.”