NEWS
Ukraine crisis set to add further cost and supply pressure to food & drink By Greg Pitcher
Russia’s invasion of Ukraine will add to the cost and supply pressures already being felt by fine food retailers across the UK, key figures have warned. Representatives of delis, bakers and farm shops said the economic consequences of the conflict would reach far beyond the borders of the countries directly involved. Since Vladimir Putin’s forces entered Ukrainian soil in late February, relations between Moscow and the West have broken down and oil and gas prices have risen sharply. Nick Carlucci, director at Berkshire-based importer and distributor Tenuta Marmorelle, stressed that the war represented a truly “horrific situation” for those directly involved. Beyond the humanitarian crisis was a series of challenges for European businesses, he added. “The main issue for us
Russia and Ukraine make up almost a third of global wheat exports
is that Ukraine is one of the largest producers of sunflower oil in the world,” he added. “Our suppliers use it to preserve antipasti in jars. At the moment they still have stock but they have warned us it could become a problem.” With Italy highly reliant on gas supplies from Russia, the cost of drying pasta has almost trebled in recent weeks, Carlucci said. Meanwhile, UK Flour Millers director Alex Waugh said Russia and Ukraine accounted for almost a third
Waitrose and Tesco launch pointof-difference displays in-store Last month – to mark B Corp Month – Waitrose launched areas dedicated to ethical businesses bearing the certification in 187 of its stores and promoting its online B Corp shop. Under the banner ‘BE THE CHANGE’, the retailer showcased the B Corp-certified products it sells in aisle-end displays including messaging explaining what the certification means. Waitrose launched its online B Corp shop in 2019 with it now boasts hundreds of ethically certified lines. Meanwhile, Tesco launched a craft coffee fixture, collecting its range of coffee challenger brands
that produce ethicallysourced, specialty-grade coffee, aiming to provide a point of difference in the category in-store. Coffee from Löfbergs, Littles, Roastworks, Rokit and multiple awardwinning SKUs from Change Please. waitrose.com tesco.com
of global wheat exports. “Although much of what they produced from the harvest in 2021 has already been shipped, there is some that remains in store,” he said. “There are also medium-term concerns about the prospects for the next harvest in August/ September and what may be available. The price of wheat on the London futures market rose 28 per cent between 16th February and 3rd March, Waugh added. As well as feeding directly into
bread, wheat is critical in the preparation of eggs, meat and other food, he pointed out. George Fuller, chairman of the Craft Bakers Association, said the cost of bread and baked products was “likely to increase”, particularly at the next harvest. “We may also see some disruption to the supply chain, sooner rather than later, if stored wheat is not exported from Ukraine or Russia,” he added. Barbara Cossins, proprietor at Dorset’s Rawston Farm Butchery, said she had seen a “definite” impact on demand since Moscow’s invasion of Ukraine affected pump prices on UK forecourts. “The fuel crisis is having an effect,” she said. “People do one shop at a supermarket rather than drive around smaller businesses. Customers are telling us they are watching their fuel use.”
Belfast deli owner working ‘non-stop’ to help refugees The Polish owner of a Belfast deli has devoted her time and business to collecting donations for Ukrainian refugees. Monika Rawson, who owns Smokey Deli, told FFD her life had been turned upside down in the weeks since the Russian invasion. Born in Poland, Rawson has family living across the border in Ukraine and found the scenes of the conflict extremely upsetting. “The first few days I just cried,” she said. After seeing social media posts about supplies being taken from Belfast to Poland for refugees fleeing the violence, she decided to use her position in the community to help. “I thought if we fill half a van then it would be worth it; in the end, we loaded a full van from Smokey Deli alone,” she said. “People came from all over after hearing what we’re doing.” Regular customers have volunteered to help sort donations after the volume became overwhelming. “Since 25th February my life hasn’t stopped,” said Rawson. “The phone rings a hundred times, there are non-stop messages. She pledged to keep collecting for “as long as it is needed”.
WHAT THEY ARE SAYING ABOUT... HOW THE WAR WILL EFFECT PRICES NICK CARLUCCI TENUTA MARMORELLE
“Costs are going up on everything from pasta to empty pallets. On 1st March we put our prices up – on average about 5%. It’s the first time we’ve increased them in three years. Everyone knows it is a difficult situation, though, and we’re doing our best.”
GEORGE FULLER CRAFT BAKERS ASSOCIATION
“The cost of bread and bakery is likely to increase due to a number of factors. The cost of wheat combined with the significant rise in energy prices will mean that craft bakers will have to recover these additional costs by increasing the cost of bread and bakery.”
BARBARA COSSINS RAWSTON FARM BUTCHERY
“Ukraine is one of the strongest agricultural producers in Europe. With the Russian invasion, this has all changed for the foreseeable future as borders are closed and getting these commodities into the UK is currently impossible. In the UK, our shelves will be emptier and our prices will be higher.” Vol.23 Issue 3 | April 2022
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