Brexit for better or worse?

As the UK begins the long and complex task of leaving the European Union Julie Baxter asks one onboard supplier - Adam Sopher of Joe & Seph to share the impact of the Brexit vote

Did you predict the Brexit vote. WERE YOU READY FOR THE RESULT?

In the lead up to the referendum, like most of the population in the UK, we didn't think that the vote would go the way it did and certainly hadn't thought that the pound would plummet as much as it has. Many economists have said the pound was over valued before, but the fall from €1.30 on June 23 2016 to €1.13 today (November 2017) has been dramatic and not one we could have anticipated

How has the result IMPACTED YOUR BUSINESS?

The most immediate impact was on our raw materials – we source most of our ingredients in the UK but our corn is grown in France, some packaging comes from China and these products were only contracted ahead for a few months. As soon as these contracts

came to an end, our costs went up.

Weren't there benefits. HOW ABOUT EXPORTS?

We expected to see an immediate increase in the amount of popcorn we were selling abroad, but this has taken a year to start happening. Overseas customers wanted to be sure the exchange rate was here to stay before factoring in the price reduction and reducing the RRP. Now a rush of export orders is beginning and we have launched Joe & Seph's into lots more countries in recent months thanks to lower pricing, which is exciting.

Do you use EU workers. WHAT'S THE IMPACT ON STAFF?

The most unsettling impact of the result was on our staff. Like most businesses in the food

manufacturing sector around a third of our workers come from the EU and immediately they were concerned for their future in the UK. They also had to cope with the fact that they had effectively seen their salaries drop by 15% when they converted it back to Euros.

DO YOU THINK YOU WILL LOSE STAFF BECAUSE OF BREXIT. Will they stay?

Many of our team has been with us since we launched in 2010 and have been a big part of our success. We hope they will stay but a recent Food and Drink Federation survey found almost half (47%) of businesses surveyed said that EU nationals were considering leaving the UK due to uncertainty surrounding their future. This poses a big challenge for our sector.

SO WHAT ARE YOUR THOUGHTS ON THE FUTURE. What will Brexit ultimately mean for your business?

As a business we would much prefer less uncertainty and the status quo, but the change expected with BREXIT does create opportunities. Smaller businesses like ours are best placed to thrive and react quickly to change compared to larger businesses, so we are positive despite the significant challenges.

DO YOU THINK IT WILL BECOME HARDER TO DO BUSINESS as a British business, particularly in the onboard sector?

I believe there will always be a demand for quality, British products so if we keep our focus on making the best tasting popcorn out there, customers all over the world will continue to love what we do.

How have your onboard clients responded to the Brexit vote. ARE THERE ANY SPECIFIC IMPLICATIONS FOR ONBOARD?

We haven't seen an impact yet although we are expecting one.

For example, currently all food products sold in Europe comply with the EU FIC regulations which essentially means there is one, common way to label all food products in the EU. Brexit means there is uncertainty as to whether this will stay in place or if the labelling requirements for the UK will become different to the rest of the EU.