LVMH is stockpiling wine and spirits in preparation for Brexit

Lianna Brinded
·Head of Yahoo Finance UK
Source: WikiCommons/Tomas er
Source: WikiCommons/Tomas er

France’s LVMH Moet Hennessy Louis Vuitton (MC.PA), which makes high-end beverages like Moet & Chandon as well as designer clothing, said it is stockpiling four months worth of wine and spirits in preparation for Brexit.

Bloomberg reported that on LVMH’s fourth-quarter earnings conference call, executives highlighted that Britain accounts for 4% of the company’s revenue and the group is “ready for the worst case scenario.”

LVMH is the latest out of a long line of companies to say they are stockpiling goods to prepare for Brexit. It is currently unclear whether a Brexit deal will be sealed in time for the 29 March deadline or if the UK is going to crash out of the European Union without an agreement in place.

This week, bosses of Britain’s biggest supermarkets and popular food outlets warned the public of “inevitable pressure” on food prices and fewer products if a hard Brexit leads to new checks, delays and tariffs at Britain’s borders.

Supermarkets Tesco, Sainsbury’s, Asda, and Morrison’s have also asked their main suppliers to ramp up stock over shortage concerns. Aldi has already considered stockpiling food as part of its preparations for Brexit but CEO Giles Hurley has said that Aldi’s increased fresh food range would make this more difficult.

READ MORE: Food shortages in a no-deal Brexit ‘realistic,’ says professor