We ask founder Andrew Newlands what a leave vote could mean for his business.
On June 23, the UK will go to the polls to decide if we stay or leave the European Union. If the much talked about ‘Brexit’ happens, there is no doubt the ramifications on businesses would be huge, with both positive and negative elements.
The Source asks some licensees for their thoughts on how a leave vote could impact their companies, as well as the UK licensing industry as a whole.
Today: Monty Bojangles
Andrew Newlands, founder & md, Monty Bojangles
What will a leave vote mean for your business?
“A Brexit vote will most likely result in the immediate devaluation of Sterling. In the short-term, weak Sterling will enable an enhancement in the value we can offer our export customers, resulting in a lift in export volume.
“Longer terms benefits will surface if a low Sterling value remains, such as the emergence of new price cliffs that we can approach with confidence. However, many Euro imports will increase in cost as a juxtaposed by-product, robbing part of the above benefits.”
How might it affect the UK licensing industry as a whole?
“Where off-shore sourcing is a key factor in the product development and fulfilment process, a Brexit is likely to impact negatively on margins – particularly with products where little UK added value exists.
“The knock-on challenges to increase pricing will be resisted by retail at a time when affordability and offering value is believed to be key.”
This feature originally appeared in the Summer 2016 edition of Licensing Source Book. Click here to read the full publication.
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