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Domino's Stockpiles Tomato Sauce For No-Deal Brexit
6 August 2019, 14:54 | Updated: 6 August 2019, 14:55
Britain's biggest pizza delivery chain has revealed it spent £7m stockpiling ingredients like tomato sauce in the event of a no-deal Brexit.
Domino's is concerned about having a shortage of supplies in a no-deal Brexit, so has been stockpiling ingredients.
“A potential no-deal Brexit carries the increased risk of disruption to raw material supplies into the UK and foreign exchange volatility which could increase food costs,” Domino’s said on Tuesday.
Whilst Domino’s buys flour and cheese in the UK, it gets the tomato sauce for its pizza bases from Portugal.
Other imported ingredients that the company has stockpiled for Brexit include frozen chicken, tuna and pineapple.
Boris Johnson’s government has pledged to leave the EU, come what may, on 31 October with or without a deal.
Trade experts believe a no-deal scenario would threaten businesses with delays at the border and an increased possibility of higher prices.
Domino's is also looking for new leadership. The company announced the retirement of Chief Executive Officer David Wild on Tuesday and said it was in talks with its franchisees to resolve a row over profit sharing.
The departure of the 62-year-old Chief Exec comes as Domino's struggles with mounting losses at its overseas operations, while trying to negotiate commercial terms with its franchisees in the UK and Ireland.
The company has 63 franchisees in Britain and seven in Ireland.