Brexit News: Domino's Stockpiling Ingredients In Anticipation Of No-Deal Brexit

In anticipation of a no-deal Brexit in the U.K., Domino's Pizza Group is stockpiling imported ingredients such as pineapples, tomato sauce and frozen chicken, with the company having spent the equivalent of $8.5 million, according to reports.

Although the pizza giant gets its flour and cheese domestically, it imports tomato sauce from Portugal, which is a member of the EU. A no-deal Brexit would fundamentally alter trade between the U.K. and EU countries, which could make it harder for companies such as Domino's to get the products they need.

Prime Minister Boris Johnson has said that he is bringing the country out of the EU on Oct. 31, regardless if it has made a deal with the EU or not. Some experts have warned that a no-deal Brexit would plunge the country into a recession.

The prospect of a no-deal Brexit adds to Domino's problems in the U.K. as the company reported a profit drop of 27% on Tuesday due to challenges in the international markets and a slowing British economy. CEO David Wild is also set to retire.

Services such as Uber Eats and Deliveroo are straining Domino's in the U.K., as they have enabled other restaurants that have pizza delivery. Pizza Hut is also one of Domino's top U.K. competitors.