The UK lorry driver shortage and subsequent fuel problems are just the start…food and beverage companies have warned that a scarcity of butchers, farm labourers, and factory workers will put further pressure on supply chains.
Rising costs of raw materials and energy are putting pressure on food and beverage producers. Among others, Nestlé said in July that this will squeeze margins.
Input cost inflation
The UK government furlough scheme ended on 30 September, and the £20 universal credit pandemic boost has also stopped, so it's only now that the industry will begin to get a clear picture of unsupported post-coronavirus spending habits.
The UK has yet to stabilise into a ‘new normal,’ making it difficult for buyers to analyse the conditions for measuring underlying sales and profits, which spiked during lockdowns for many companies selling to supermarkets. The extent to which people will continue working from home, and therefore buy food and beverage products, such as coffees or lunches, remains unknown.