Hilltop Honey is an award-winning, established brand of pure and natural, premium quality honey, available in recyclable hexagonal jars and easy squeezy bottles – a business based in the heart of Wales, delivering and innovating to the honey sector, providing a natural, healthier alternative to refined sugars with the overall mission to help food consumers learn that ‘there’s more to honey’.
Challenges and potential issues facing the business emerged due to the Brexit uncertainty and to cope with demand. Hilltop Honey imports approximately 95% of its raw materials. The company is highly dependent on the stability of gross margins on raw materials. These margins not only sustain the business, but also determine what contracts the company can tender for and re-negotiate.
Because of its exposure to imports, Hilltop Honey is faced with the following risks posed by Brexit:
- Possible changes to duties and tariffs.
- Possible exchange rate variations.
- Possible customs delays.
- Possible decline in consumer confidence.
Business Wales involvement included:
Business Wales, through a Relationship Manager supported Hilltop Honey from start-up to the growing business it is now: The Relationship Manager reviewed the potential impact of Brexit on the business and looked at production capacity and bottle necks within the process. This highlighted the need for specialist expertise, related to both the importation of honey from Europe and the need for increased production efficiency and capacity. Business Owner Scott Davies and the team were assisted with their business planning and financial forecasting to underpin the investment decision and finance application process, resulting in a successful Brexit Resilience Grant award.