on 07-08-2016 02:16 PM
Shocked and wow was our teams' initial reaction on the morning of Friday 24th Jun. It's been challenging for us since BREXIT decision was confirmed. The main reason is we source the majority of our specialist materials from Europe, like our recycled aluminium foil sheets for us to create the foil infuser sticks.
Day 1 following the Brexit decision the team I were on the phone contacting all our suppliers across Europe. The task was to extend payment terms and hold up imminent invoices that required payment. The pound sterling was in a bad way and we immediately lost thousands of pounds. Fortunately our suppliers was vey understanding and could feel our pain. We held out for a week, then eventually took a decision to settle all outstanding bills as we had produced just over 14 pallets of product and one container filled with T-Sticks was set to sail for Asia.
We do have a euro € account as part of our business unfortunately one of our buyers put the first instalment of their two pallets in our GBP sterling account which did not help the situation.
We have recent experiences entering Poland having recently visited Gdansk and Warsaw 6-9th June as part of a Enterprise Europe Network trade mission to explore the opportunity to find partners and growing sales in these new markets. The evening of the 24th June Ricky as the co-founder was asked to give a presentation on T-Sticks of London and expansion to through an export model to the Polish Business Link community. The business meeting was was held on the Thames and had a turnout of around 100 people. As one can imagine it was a rather somber mode and Ricky adapted his presentation to focus on the BREXIT and what this means in the short term and long term. Overall the majority of attendees are well established Polish business people in the UK and know their businesses will still thrive in the UK.
The OptimisTic future
Going forwards we focuses our energies to be optimistic and held our heads high as currently the majority of our first year revenue was from exporting. Due to the implications of Brexit the pound stayed low and this makes our product cheaper to foreign international markets and buyers. As a result we have seen a 30% increase in foreign enquiries for our product range. The jury is still out and we are continously improving our product range, varieties and sourcing materials within the UK.
Polish business link and EEN.
on 08-08-2016 08:13 PM
I've never seen your product before, but that's great! I love the simplicity of the idea - essentially a hardwearing, firm, teabag you can use as a stirrer as well. And the foil manufacture means that flavour is well kept in - unlike boxes of bags which are often left open.
I guess if you are doing a lot of export, this is actually great news for you. I only sell my product within the UK at the moment, though have the ability to send throughout the EU. It's a scale thing. But being a luxury hot chocolate, I buy in Belgian - and cocoa isn't the most stable market anyway - so prices are looking a little increased, with further potential for change. My retail cost contained a buffer for the cocoa market, and luckily nothing has gone beyond what I allowed for.
One further step for me is now to create chocolate directly from the beans - thus changing my ingredient costs to something a little lower, and also creating an entirely new product for my customers! Something with far more export potential as well, I think.
Either nothing was going to happen, or something was. If something happens - make the best of it!
on 10-08-2016 03:06 PM
We launched our crowdfunding campaign through Seedrs just after Brexit and I do wonder whether there will be an impact on the overall result with this. We are a UK company, where anyone around the world can now order quality home made cakes/cupcakes to be hand delivered by our army of fully registered and insured bakers throughout the UK. But will investors still be investing in start-ups ( we launched in April 2016) with so much uncertainty.