Natural cosmetics brand Lush will focus expansion efforts outside its UK home, in response to continued Brexit uncertainty.
The ethical cosmetics brand issued the following statement on the matter:
“To date Lush has flourished from the freedom of movement of people and goods, and now we face uncertainty in both of these areas. The negotiation of new trade agreements could take years, but the risk is that we will be paying more import duties across the business.”
“With Britain close to full employment and with a severe skills shortage we are concerned that restrictions on free movement of people will impact the availability of both the skilled and the unskilled restricting future growth in both our UK manufacturing and buying facilities.
“Having opened our new Germany manufacturing facility during the year we will be reviewing other options for growth outside of the UK. With little clarity on the government’s approach to the implementation of Brexit this remains a key uncertainty for the business going forward.”
According to the company, more than 80 of its employees agreed to relocate to its new factory location in Germany in reaction to Brexit negotiations. Approximately 20 percent of its staff do not hold British passports, and had “suddenly felt unwelcome and understandably upset” over the vote to leave.
However, notwithstanding the uncertain climate, Lush has continually performed strongly in the wake of the referendum. Turnover rose 26 percent to £723.3 million, with group turnover rising 21 percent to £394.9 million during the year to June 2016. In addition, the company said that pre-tax profit had increased 76 percent to £43.2 million.
Lush has been in operation at its headquarters in Poole, Dorset since it was started in 1995 by Mark Constantine and Liz Weir. The company specialises in ethical 100 percent vegetarian-friendly produce, such as bath bombs and lip scrubs. As well as operations in the UK, the brand also is located in Germany and various sites in Canada.