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Brexit 2020 V3.0 - Impacts on packaging consumers

Jan. 5, 2020, 8:31 a.m.

Brexit 2020 V3.0 - Impacts on packaging consumers

As Brexit has come twice already, most of us are probably already prepared in all sorts of ways for stock, storage and distribution and for those who haven’t here’s another chance to get ahead of the game!

Firstly, Swiss Pack has manufacturing plants across the world in places such as: China, India, Lithuania & Mexico! As well as that we have distribution hubs in many major cities across and surrounding Europe that have been stockpiled to ensure supply ability!

Therefore, you can rest assure wherever you are you should have no issues with us! But beyond storage and distribution, there are many other factors to consider Brexit may have...

Product & Labelling
Upon leaving European union quality schemes will no longer be applicable to UK Businesses, which will require the following but are not limited to these:

Food Businesses will require to have a food business operator address or EU importer address clearly stated on their packaging.
Designation of origin must also be stated
EU Organic Logos must not be used if the UK leaves the EU
Health & Identification Marks – The EC Abbreviation must not be used except by those companies based in the UK but companies must state their country in full or by the use of ISO code and the approval number of the establishment.
Certain edible products must not be made available for sale without approval / authorisation by the EU Commission. (This includes but is not limited to Additives, Flavourings, Smoke Flavourings, Novel Foods or Genetically modified foods).
Importation of food of animal origin from the UK is prohibited unless the EU commissions criteria for the establishment is met.

Recycling & Sustainability

Where recycled plastic materials to be used with food, authorisation holders shall notify the commission of all the manufacturing and recycling sites situated in third countries
Products described as organic must meet the regulation No 834/2007. Organic products imported from the UK must be accompanied with a certificate by a recognised body in accordance with Article 32(2) of Regulation (EC) No 834/2007.

Workforce

The UK’s Choice to leave the EU will have an heavy impact upon sectors that are labour intensive which includes hospitality, healthcare, food production, packing, storage & distribution & fulfilment centres. Although your business may not fall into any of these sectors but you probably cross paths with them somewhere in your supply chain which could cause you some disruption as many companies in these sectors are looking to take a reactive approach as opposed to pro-active due to the continued delays in departure.

Therefore, it would be a good idea to discuss with your suppliers where they stand with Brexit and how they’ve prepared for potential impacts as many interchange services with each other.

Key Risks:

Labour shortage creating a domino effect of disruption on the supply chain.
Low output efficiency due to change in workforce and demotivated staff

Increased labour costs

Price Sensitivity

Many suppliers may push perceived increased costs down to the unit cost of your product/service
as opposed on actual costs causing a rise in Inflation. This may push many consumers to then shop around for preferential rates from companies residing outside the EU where this is likely to be little disruption. A quick and easy solution would be to lock pricing with your suppliers residing in the EU throughout the period and conducting risk assessments across all processes that may be impacted.

Useful links:

Withdrawal of the United Kingdom & EU Food Law & EU Rules on Quality Schemes
https://ec.europa.eu/info/sites/info/files/eu_food_law_en.pdf

Preparing for Brexit Through Workforce Planning
https://www.cipd.co.uk/Images/brexit-workforce-planning-guide_tcm18-38797.pdf