It’s not higher costs that sink a business, it’s unpredictable ones

Cocoa2

Traditional commodity hedging suits big treasuries, not mid-sized manufacturers, but a newer breed of insurance could make volatile ingredient costs predictable instead of just painful, says Ian Wright, partner at Acuti Associates

Over the past few months, this column has argued that geopolitical turmoil and fundamental climate change pose serious threats to the supply of ingredients – and therefore to the quality and range manufacturers and retailers can offer shoppers.

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