Scottish chocolate fountain and popcorn equipment maker Sephra Europe is facing significant operational hurdles in the wake of Brexit, according to the company’s leadership.
David Archer, Managing Director of Sephra Europe, has revealed the extent of Brexit-related challenges affecting the Scottish-based manufacturer, which exports its specialty catering equipment worldwide.
“As a business that carries out significant levels of importing and exporting within the EU, we have had to cover all areas to ensure we fully understand the challenging impact leaving the EU will have on our business,” said Archer.
The company, which ships its products to markets spanning South America, North America, Europe, Russia, the Middle East, Africa, and Asia, has been particularly vulnerable to new cross-border trade complexities.
Archer highlighted specific operational difficulties, including escalating paperwork requirements and rising logistics costs. “We have invested in our operations significantly to ensure we remain competitive with the EU and have absorbed a range of costs,” he explained.
Despite these proactive measures, uncertainty continues to plague the business. “There is still a lot that is unknown, such as administration costs to handle the increased shipping paperwork to the growing transportation fees, and it will be some time before we get a grip of the full expense of leaving the EU,” Archer noted.
The situation has been further complicated by the pandemic, which has compounded the Brexit-related challenges for Sephra Europe, mirroring difficulties faced by numerous Scottish and UK businesses involved in import and export activities.
The company’s experience reflects wider issues in the Scottish food and drink sector, where businesses are contending with increased delays in ingredient and packaging supplies, alongside significant transportation disruptions since the UK’s departure from the European Union.
