Dairy Crest stockpiling in case of no-deal Brexit

31st Jan 2019 08:34

(Sharecast News) - Food company Dairy Crest said it was stockpiling ingredients and packaging materials as it sought to insulate itself against a no-deal Brexit.The cheese and butter maker said there was "significant uncertainty" around Brexit and the "impact of a potentially disorderly exit is hard to predict".While its supply chain and customer base was largely located in the UK, Dairy Crest said it was acting to reduce its exposure to any fallout from a UK exit without a trade deal.In a third quarter trading update, Dairy Crest maintained its full year outlook as sales grew 6%, driven by Cathedral City cheese, Clover spread and Frylight.Cathedral City had a "particularly good third quarter", Dairy Crest said as both volume and revenue grew by around 10% helped in part by new product launches, including flavoured snack bars, Lactose Free and a refreshed kids' snacking range."Frylight returned to double digit volume and revenue growth in the third quarter, although over the nine month period the brand declined due to the challenging first half of the year", the company said."Our key brands have delivered exceptional performance in the third quarter with all four generating both volume and revenue growth. Demand for our functional ingredients is also increasing, with positive implications for price," said chief executive Mark Allen.