FOB Chief Executive’s Weekly News – 1st April 2019

Dear all,

Sorry, I’m a day late!

As of 1st April 2019 there has been a change to the legal status of FOB to Federation of Bakers Limited, a private company limited by guarantee without share capital.

FOB will now be formally known as Federation of Bakers Limited but still be referred to as FOB.

As part of this legal change in status the Federation of Bakers Limited now has a Board of Directors, who are the FOB Council Members, and I am the Company Secretary.  To avoid any confusion my title has changed from Director to Chief Executive.

We will be contacting the accounts department at all member companies to advise them of changes to our company status, bank account details and new VAT number which will be changed on all FOB Ltd invoices going forward.

Gordon Polson – Chief Executive

Federation of Bakers Ltd

 

Economic News

Barclays Economic Update-UK Consumer Confidence, March 2019

previous: -13

consensus: -14

actual: -13

Consumer sentiment remained stable in mar’19, but key forward-looking components were mixed. Furthermore, the Confederation of British Industry (CBI) distributive trade survey deteriorated recently, for both past and expected volumes for retail sales. This combination of surveys provides a subdued backdrop for household spending in mar’19. Retail sales held up well in jan’19 and feb’19, defying weakness signalled by household surveys, credit card data and the British Retail Consortium (BRC) retail sales survey. This contributed 0.2pp to q1’19 consumption. However, the outlook for mar’19 looks less buoyant as these consumer and retailer surveys continue to highlight a series of headwinds for households.

Within the GFK survey, the general economic outlook and expectations for unemployment and personal finances over 2020 all improved marginally, albeit from very low levels. However, major purchase intentions deteriorated following a brief bounce in feb’19, while savings intentions continue to steadily increase. Plans to purchase big-ticket items have in recent years oscillated around the annual growth rate in consumer spending, which is a worrying signal for household spending.

The mar’19 survey was carried out during 1st – 14th mar’19 on a sample of 2,001 individuals aged 16+ on behalf of the European Commission. Survey responses are typically collated during the first two weeks of the month. the apr’19 survey is due to be released on 30th apr’19.

Summary: mar’19 consumer confidence remained steady around low levels, with major purchase intentions deteriorating while savings intentions continued to increase. The combination of weak household sentiment along with the sharp fall in mar’19 CBI retail sales volumes paints a far less buoyant outlook for retail sales in mar’19.

 

Other News

Groceries Code Adjudicator Newsletter: Read the latest edition here. In this edition the Adjudicator talks about the Co-op investigation, her annual survey and provides an update on her Top Issues.

Groceries Code Adjudicator (GCA) sector survey: The GCA’s sixth annual groceries sector survey is currently open and runs until 23 April. You can complete it by following this link. The survey allows you to give honest feedback on your experience of how retailers are complying with the Code and is a very important source of information, allowing the GCA to collect a wide range of views on current Code-related issues facing suppliers.

Nutrition legislation if there’s no EU Exit deal: DHSC published guidance about the process for the authorisation of health claims that would apply in the event of a no-deal Brexit.  A new committee, the UK Nutrition and Health Claims Committee (UKNHCC), will be constituted should a no-deal be the outcome of ongoing discussions.

UK nutrition and health claims register: The Department of Health and Social Care (DHSC) has published new information about a UK nutrition and health claims register, which sets out all authorised and rejected nutrition and health claims.  In the event of a “no-deal” Brexit only authorised claims in the register may be used in the UK.  The annex to the register lists health claims authorised on the basis of proprietary (privately owned) data. The DHSC has provided guidance to support use of the register. It has also published a spreadsheet of Article 13.1 “on hold” health claims that may continue to be used in the UK in the event of a no-deal Brexit, subject to conditions set out in additional guidance.

UK register for food additives: The Department of Health and Social Care (DHSC) has published new information about vitamins, minerals and certain other substances that may be added to foods in the UK, if the UK leaves the EU without a deal. This UK register specifies which vitamins and minerals may be added to foods, and any substances that are banned or restricted, in the event of a no-deal EU Exit.  The DHSC has provided guidance to support use of the register.

Some Useful Reminders:

Import / Export Guidance: FDF has produced one page guides for food and drink importers and exporters, aimed in particular at SMEs. These documents set out five essential steps to ensure your business is ready to import from and export to the EU in the event of a no deal Brexit. The documents are: Five essential steps for exporters and Five essential steps for importers.

EORI Number – Importing and Exporting: If you want to continue to import and export from the EU after 11pm on 29 March 2019, you will need an Economic Operator Registration and Identification (EORI) number. Apply for an EORI number online and you should receive it within 2-3 working days. Do let us know of any feedback you have regarding this system that we can share with Defra.

The 2019 FDF Convention:  will take place on 14 May at The National Gallery in London. The FDF Convention is the place to be to hear about the big issues affecting our industry; Brexit; retailer consolidation; plastics and packaging. This year we welcome guest speakers including Graham Stuart MP, Minister for Investment; DIT Director General for Exports John Mahon; Susan Hayman MP, Shadow Secretary of State for Environment, Food and Rural Affairs; Rose Price, Head of Buying, Ocado; Nestlé UK CEO Stefano AgostiniBen Morrison, Head of Commercial Grocery Division at Nielsen; Glenn Hall, Partner, Co-Head Government Relations & Public Policy Solicitor, Norton Rose Fulbright LLP; Adam Leyland, Editor, The Grocer Magazine; WRAP Director Dr Peter Maddox and Andrew Taylor, Partner at Aldwych Partners and advisor on competition and mergers. More information can be found here.