The logo of Mondelez International is pictured at the company’s building in Zurich November 14, 2012. Picture: REUTERS/MICHAEL BUHOLZER
The logo of Mondelez International is pictured at the company’s building in Zurich November 14, 2012. Picture: REUTERS/MICHAEL BUHOLZER

London — Mondelez International, the owner of chocolate maker Cadbury, is stockpiling goods and ingredients in a bid to avoid any shortfall for UK customers in the event of a hard Brexit.

The UK alone can’t provide the ingredients for the confectionery company’s products, Hubert Weber, president of Mondelez’s European arm, said in an interview with the Times of London published on Tuesday. Mondelez is stacking up goods in case the country’s withdrawal from the EU creates import delays.

Companies across Europe and beyond are laying out plans to prepare for supply interruptions and shortages threatened by the creation of a border between the UK and the EU. Rolls-Royce Holdings said in July it was considering stockpiling components as the outcome of a Brexit deal remained unclear, while pharmaceutical companies, such as US-based Merck, have also included higher inventories in their contingency plans.

Michel Barnier, the EU’s chief negotiator, gave the UK some reason for optimism Monday when he said a Brexit deal was six to eight weeks away. Still, any agreement would most likely be lacking in detail, with most of the meaningful decisions on alignment of trade and regulations likely to be postponed until after Britain leaves the bloc in March.

A spokesperson for Mondelez confirmed Weber’s comments, saying the company is monitoring the political situation and "preparing for a number of potential outcomes".

Bloomberg

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