Musgraves, BWG seek suppliers’ Brexit plans

TWO of Ireland’s largest retail groups, Musgraves and BWG Foods, have contacted suppliers requesting that they disclose their plans for dealing with Brexit, in emails seen by the Sunday Independent.

Musgraves, which is behind supermarket chain Supervalu and convenience retailer Centra, asked its suppliers to share information on how they would “mitigate costs” associated with Brexit.

The email was sent last month, with suppliers expected to respond by close of business the following day. In response to queries, Musgraves, which had revenues of €3.9bn in 2018, said it had been collaborating extensively with its suppliers since 2016 as part of its Brexit planning.

“This communication was sent to 28 suppliers to clarify a number of additional details, and to understand our suppliers’ plans and their state of preparedness for a no-deal Brexit,” it said.

“We have had positive engagement with our suppliers over the last two-and-a-halfyears and this collaboration will ensure that we minimise the impact on consumers.” South-African owned BWG, which operates convenience chains in Ireland such as Spar and XL, contacted its suppliers asking them to provide information on their preparations for Brexit and how it would impact on the supply of goods to BWG.

The company attached a questionnaire with the email which asked suppliers to share information on their supply route.

It provided examples including whether the product arrives from the UK, passes through the UK, or is delivered directly from Ireland. It also asked suppliers if they had identified contingency stockholding, how much warehouse capacity they have available, and if any product inputs will be exposed to Brexit.

BWG, which had revenues of €744.2m in the six months to the end of March, told the Sunday Independent that it had been “actively involved” in contingency planning around Brexit with its suppliers and customers.

The company said it would not be appropriate to comment on those engagements.