WE HOPE YOU HAD A GREAT CHRISTMAS AND NEW YEAR!
2008 ended with the predicted doom and gloom, with Retailers heavily discounting and bringing forward Sales, which still did not stop the demise of some very familiar High Street names. I am sure that a lot more will follow in 2009 and the knock on effect on suppliers will be significant. For instance where will the £1m worth of Easter Eggs made and planned for Woolworth's be sold now?
All of us will have to closely watch our customers and take extra care to ensure that payment is safe and made on time, easily said!
Below you can see the collapse of Sterling against the Euro, which will mean that during 2009 we will see huge increases in products that are produced in Euro zone and US$ based countries. We have issued our new Price List for the first half of 2009, and can at least confirm that Barry-Callebaut and Belcolade prices are firm, other than Belcolade organic prices, which will be adjusted at the end of Jaunuary, as the currency element is covered, however the second half prices could be significantly higher unless Sterling stages a recovery. Also the Cocoa Market continues at high levels...
GBP / Euro as at 30-12-08
Cocoa Market as at 30-12-08
Other products, however, are at "spot" Euro prices and so we reserve the right to alter prices (both ways) for as long as the current weakness and volatility prevails. Obviously we will do all we can to offer stability. Should you wish to discuss specific product pricing, or if you prefer to purchase in Euros, we will be happy to accommodate you.
Remember this is a good opportunity for UK manufacturers, as we mentioned in the December Newsletter!!
31 st December 2008