Pecan Deluxe Candy overcomes Brexit hurdles with DDP European deliveries
pic: Pecan Deluxe
UK confectionery business Pecan Deluxe Candy has responded to increased challenges of exporting goods due to additional Brexit-related administration through offering customers in Europe an alternative buying process, reports Neill Barston.
According to the company, there has been a positive response to its use of DDP (Delivery Duty Paid) services for its range of toppings and inclusions, which operate on the basis of supplying firms taking care of the additional tax duties for customers that do not want to be burdened by extra logistics issues – a situation that has led to many British SME companies significantly reducing or ceasing exports to the EU due to the additional time and cost involved.
However, Pecan Deluxe believes its latest form of delivery service could prove significant in overcoming such trade hurdles that it acknowledged could have potentially damaged relationships with existing European businesses.
As the firm noted, it had worked hard to offer DDP as a buying option because it’s the easiest route for customers who just want to take delivery of products without any involvement with customs, Duty/VAT etc. The ability to sell with DDP means: smoother logistics, customs clearance & inspections & reduced supply chain costs which all assist with keeping prices down. However, as Confectionery Production has noted, in transferring the cost of handling tax matters to the supplying business, this option is considered slightly more expensive by industry observers, but is said to still save against the alternative frameworks in place.
Notably, the business added that the decision was made to use Calais as the single point of entry to the EU, enabling vet inspection and clearance to be streamlined at one place. In addition, the whole procedure is now managed by a single import broker resulting in a much faster, more efficient shipping process. After entry, the goods are free to circulate within the EU without any requirement to deal with customs officials at multiple border points and the consequent delays that would normally result from this. The haulier can drive directly to the customer without the need to divert to discharge a T1 Transit document.
Pecan Deluxe Managing Director Graham Kingston said” “Aside from streamlined delivery times, our DDP customers now have minimal involvement in the delivery element of their transaction. Essentially, from a customer perspective, the process that was previously fraught with complexity is now hassle free.”
Pecan Deluxe made the decision to reformulate a large proportion of its best-selling products traditionally made with animal derived ingredients like eggs & dairy so that they can offer customers an equivalent plant-based version which does not require an Export Health Certificate (EHC) & vet inspection & the associated paperwork & cost that this entails. Brownie, cake, cookie & cookie dough pieces are now all available without the ‘composite food’ classification that can bring additional hassle for European customers purchasing from UK suppliers – and they taste just as good!
In a further drive to reduce lead times and improve customer service Pecan Deluxe has invested in a new bakery area which will be fully operational by the start of 2023. The new bakery unit effectively doubles the companies’ production capacity & customers will reap the benefits of reduced production times as a result. In addition, as part of a continuing project to improve output for fudge & caramels, Pecan Deluxe has achieved a significant increase in production yields by making adjustments to the manufacturing process. The resulting fudge, toffee & caramels are made with the same recipes & to the same delicious high quality as before – only faster