Huge Challenges for the UK Hospitality Sector.
You may have noticed over the last few months the prices have increased. Occasionally we have been out of stock of some products. Business has been tough this last year for lots of our customers and the last thing we want is to disappoint.
Manufacturers gave us little or no warning over the price increases. Luckily we have always kept large stock reserves. This helped us in two ways.
- Firstly we could delay the price increases.
- Secondly we were able to ride the storm of stock unavailability.
There are so many reasons why there have been larger price increases this year we will outline a few below if you would like further explanations please contact us here
Supply and demand: Covid caused international surge on demand for takeaway food packaging especially Bagasse trays, Foil trays, Tamper Evident pots and Block bottom bags. Covid also caused stock shortages due to manufacturing shutdowns.
Transport: The cost of containers from China doubled (not helped by the Suez Canal blockage) Brexit also caused shortages of drivers increasing pallet transport costs and delays. Brexit was also to blame for delays at ports and increased import taxes from some countries.
Increased energy prices by 90% : This increased the cost of the conversion of raw materials to finished products. It is expected that some of these costs will decrease over time such as container costs, however energy costs are not expected to decline in the near future.
How Can we Help?
We have had assurances from manufacturers that prices will decrease partly. When, we are not sure. Please rest assured that we will always strive to give our best prices. While keeping our enviable reputation for excellent service and outstanding quality of products. We have invested an extra third of revenue in stock this year. When comparing prices please check the quality and case quantities. We would like to thank all our customers for continued support in these difficult times.