Brexit Retailer Perspective Sharon Buckley Our business We feed 1 - PowerPoint PPT Presentation

Brexit Retailer Perspective Sharon Buckley

Our business

We feed 1 in 3 people across the island of Ireland every day 4

Musgrave Brexit priority Minimise the impacts of Brexit on shoppers, support our retailers and foodservice partners and protect our joint business with suppliers 5

Musgrave approach 3 objectives underpin our approach • maintain full availability • no disruption to the offer • minimise price inflation to the consumer 6

Impact of Brexit on Musgrave Tariffs & Non Tariff Supply Chain Maintaining Costs Efficiency Consumer Choice Potential inflationary Brexit will drive Brexit driven costs, impact particularly for UK operational inefficiencies inefficiency and cost into sourced supply chains and divergence will make some products unviable 7

Tariff and non-tariff costs • Re-source away from the UK • Find ways to take costs out of the end-to-end supply chain 8

Tariff impacts Post Brexit € 3.32 Pre Brexit € 2.99 9

Tariff and non-tariff costs • Re-source away from the UK • Find ways to take costs out of the end-to-end supply chain 10

Supply Chain Efficiency Current efficient model Suppliers and/or Customs & compliance procedures 1 2 Musgrave need to create friction, disruption, delays hold stock locally Increased lead times Less efficient future model 11

Musgrave foodservice supply chain All island supply model  Lack of clarity on Irish border  Prepare for the worst case scenario  Minimise disruption and cost  Brexit ready 12

Maintaining Consumer Choice • Diverging laws on labelling and food standards • Potential reduction in branded NPD launches in Ireland The Irish Consumer • Delays and disruption impact choice and freshness Opportunity for Irish suppliers 13

Working with suppliers Action • focus on lean, efficient supply chain • Brexit ready for a ‘no • build stocks in ROI deal’ exit on 31 • continue to innovate • secure additional space October • seek early • be prepared to comply commitments from with Customs and SPS your customers rules Challenge Be ready 14

A positive future……. Quality Fresh & Local Food Health & Sustainability Convenience 15