Western and Central Africa
Eastern and Southern Africa
Eastern Europe and Central Asia
Friday, 24 Jun. 2016
United Kingdom's decision to leave the European Union will have consequences. It is possible that there may be a rethink, but we have assume that, over the next two years, long and intensive negotiations will have to take place to set new legislative and financial arrangements in place.
In general terms, there is already turmoil in the stock and money markets. This will affect consumer expenditure.
For the fruit juice industry, this will have big ramifications. Many non-EU based companies have established their production, management within the free market area. The total EU market could be about to shrink by over 10%. But that is only the start of it. They could quite possibly erect barriers to the unrestricted movement of juice which will result in delay, increased costs and lower profits.
On the other, there are as aspects to formulations, packaging and product claims which could cut both ways. The prescriptive EU rules may no longer apply to products which are sold in the UK. However, any benefits may be outweighed by extra costs and administration.
Few pundits predicted this result. But now that it has happened, your Market Insider will closely monitor the evolving situation as regards fruit juice.