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Pinguin announces 34 job losses in Boston

The Editor — Thu, 17 Nov 2011 12:22:10 +0000

More than half the jobs at a frozen food and storage distribution centre in Lincolnshire could be under threat.

Pinguin Foods has announced that 34 out of 55 staff at its Marsh Lane site on the Riverside Industrial Estate in Boston could lose their jobs.

The Belgian-owned food services provider has given staff a 90-day notice of redundancy, blaming competitive market conditions.

But the firm said it was hopeful the final figure would be lower.

The frozen food group has three sites in the UK – King’s Lynn, Boston and Bourne.

http://www.bbc.co.uk/news/uk-england-lincolnshire-15753675

Morrisons cautious despite rise in profit

The Editor — Thu, 10 Mar 2011 13:37:51 +0000

Supermarket group Morrisons has reported a rise in annual profit but has also warned that 2011 will be challenging.

The company announced a pre-tax profit of £874m for the 12 months to the end of January, up from the £858m it made in the same period a year ago.

Like-for-like sales, excluding fuel and VAT, rose 0.9%.

The group also said it planned to launch an online shopping service in the coming two years.

Morrisons is the UK’s fourth largest supermarket chain, after Tesco, Asda and Sainsbury’s, and is the only one of the “Big Four” without a significant online business.

As it continues to carry out research into e-commerce, it also announced a £32m investment in US internet grocer FreshDirect, which will see it take a 10% stake in the firm.

“They are leaders in fresh food online and they do it profitably,” chief executive Dalton Philips told the BBC.

This marked its second e-commerce investment in as many months, after February’s acquisition of baby goods website Kiddicare for £70m.

Morrisons also said it was exploring the idea of opening convenience stores, with plans to open three trial stores this year.

In addition, the group said it would return £1bn to shareholders over two years and was committed to double-digit dividend growth over the next three years.

But it also said in a statement: “We expect the economic backdrop to remain challenging in 2011, with higher taxes, government spending cuts, inflation and rising unemployment all continuing to weigh on consumer confidence and disposable incomes.”

For more on this story: http://www.bbc.co.uk/news/business-12696809

More than 100 jobs at risk at Exotic Farm Produce

The Editor — Thu, 10 Mar 2011 13:34:54 +0000

More than 100 people could lose their jobs after a Lincolnshire food produce company announced plans to close its site.

Exotic Farm Produce (EFP), owned by Icelandic company Bakkavor, employs 116 people in Kirton.

All employees have been notified of a 90-day consultation period stating the company’s intention to close.

A statement from Bakkavor said the business had been unprofitable “for a sustained period of time”.

“This is due to the impact of reduced sales volumes and ongoing input inflation,” the statement continued.

“More recently, EFP has lost a major customer contract and, despite tremendous efforts to secure new business over the past two years, the progress made has not been enough to counter this latest development.

“Unfortunately, as a result, the business is no longer in a position to sustain itself going forward.

“We appreciate that it has been a difficult period for everyone at Exotic Farm Produce over recent years and we would like to stress that this proposal does not reflect the commitment and hard work of the employees at the site.”

For more on this story: BBC Lincolnshire http://www.bbc.co.uk/news/uk-england-lincolnshire-12699874

Asda told to change adverts by ASA

The Editor — Wed, 02 Feb 2011 11:37:39 +0000

Asda adverts promoting price competition against other supermarkets must be changed, the advertising watchdog has ruled. (BBC News Business)

The adverts promised to refund customers the difference during their next shop if they found groceries cheaper at the other major stores.

But Morrisons and Tesco complained to the Advertising Standards Authority (ASA) that there were significant exclusions from the price comparison.

Asda argued the comparison was robust.

Cheaper?

Tesco and Morrisons complained to the ASA that the adverts were misleading as they implied that the Asda was cheaper than the two supermarkets and Sainsbury’s.

Asda disagreed, arguing that the adverts made it clear that the offer only applied to comparable grocery products.

The ASA upheld, or partly upheld, four of the nine complaints against Asda. The watchdog said that Asda did not make it clear enough that the price guarantee did not apply to non-grocery products, such as books and football-related items that appeared prominently in the adverts.

It ruled that the adverts must not appear again in their current form.

Competition

The complaints mark the latest salvo in the battle between the big supermarkets over prices.

Share of the supermarket sector

Tesco: 30.5%
Asda: 16.9%
Sainsbury’s: 16.6%
Morrisons: 12.4%

Source: Kantar Worldpanel, 12 weeks to 23 January

Ronan Hagerty, news editor of the Grocer magazine, described the current row as “very bitter”.

But he added that the current competition over prices was unsustainable, owing to rising food and fuel costs.

“They will keep it as competitive as possible and that is the good news for the consumer,” he told BBC Radio 5 live.

“But there is not much slack in the system.”

Slice of the market

Figures published earlier in the week showed that discount stores had begun to grow their market share in the supermarket sector recently, as families looked to save money.

The latest data from Kantar Worldpanel showed that Aldi increased its market share to 3.1% from 2.9%, while rival Lidl rose from 2.2% to 2.4%, in the 12 weeks to 23 January.

Among the big four supermarket chains, Sainsbury’s saw its share of the market rise from 16.3% to 16.6%. This pushed it closer to Asda, which remained in second place with a share of 16.9%.

Market leader Tesco maintained its share, at 30.5%, the figures showed. Morrisons’ share fell from 12.5% to 12.4%.

Krispy Kreme chooses Manchester for first UK factory

The Editor — Mon, 31 Jan 2011 11:10:41 +0000

US-based doughnut giant Krispy Kreme is opening its first UK manufacturing unit, as it bids to double its number of stores in the country within the next five years. (Foodmanufacturing.co.uk)

Krispy Kreme UK has taken up a 10-year lease on a 5,392 sq ft production unit on Heywood, Manchester, which will create up to 40 jobs and house a manufacturing line and processing kitchen with the ability to produce 3,000 doughnuts per hour.

Chief financial officer Rob Hunt said: “We looked at a number of industrial parks across the North West but Heywood proved to be the perfect location for us, not only because of its fantastic transport links but also because it is brand new and therefore, highly suitable for food grade use.”

Krispy Kreme UK has 42 branded UK outlets, said Hunt: “This move is the next step for our expansion plans to double the number of stores in the next five years.”

The UK expansion reflects a successful 2010 for Krispy Kreme, which expects to report global revenues of $17-20m this year, and predicts this figure could rise to $22-24m in 2011.

Aims to crack beverage sector

Within the UK, Krispy Kreme provides a range of glazed doughnuts from Krispy Kreme branded stores plus instore cabinets at outlets such as Tesco and Moto service stations, as well as in coffee bars and kiosks.

The firm also offers coffee and speciality beverages, while it is testing ‘soft-serve’ drinks served in cones, shakes and doughnut sundaes, having identified the need to bolster its presence in what it sees as the high-margin beverage sector.

Brand lacks penetration

During a conference call earlier this month, chief executive Jim Morgan said the Krispy Kreme brand was “significantly under-penetrated with substantial room for growth” worldwide.

Within the 11am-2 pm sales window he noted that the brand was “almost non-existent”, due to the firm’s doughnut-centric focus that it wanted to extend.

“We also think we’ll have products that will offset the traditional slowdown that doughnut sales have in the warmer summer months,” he said.

Founded in 1937, Krispy Kreme opened its first UK store inside Harrods, London, in 2003, and the company said the move was the latest stage in rapid expansion phase that means it now has 640 outlets open worldwide, 564 of which are franchises.

Jardox savours £1m factory investment

The Editor — Fri, 28 Jan 2011 15:46:22 +0000

Savoury ingredient supplier Jardox has completed a £1 million factory upgrade project that has doubled its production capacity. (Foodnavigator.com)

The modernisation programme, which has just been finished, includes production areas, staff facilities and new equipment to improve efficiencies at the firm’s Sevenoaks, UK base.

As a leading supplier into the UK chilled ready meal, soup and sauce market, Jardox provides wet stocks, pastes and dry ingredient blends, and provides own-label ingredients for the likes of Tesco and Asda, as well as leading food manufacturers such as Kerry Group, Greencore and Premier Foods.

Steady turnover growth

Alex Gardener, md, told FoodNavigator.com that the investment over the last 12 months included new retail lines with fillers, wrap and capping machines. This has increased Jardox’s capacity on jars alone by 30%, he said, adding that it was difficult to estimate current output due to the viscosity of many products.

The firm mainly supplies UK customers, although it has a small customer base in Europe, and Gardener said Jardox is currently growing at around 15% per year. Turnover currently stands at £12m, and the firm plans to grow this to £14m in the short-term, perhaps by the end of 2012.

Flavouring regulation impact

Although the EU flavour ing regulation 1334/2008 was adopted at the end of 2008, one major change active from January 20 2011 concerning suppliers, of ingredients, food manufacturers and retailers includes more detailed labelling requirements for natural flavours, with reclassification of nature identical and artificial flavours as ‘flavouring substances’ on labels and documentation.

Asked if this change had affected Jardox’s business significantly, Gardener said: “Slightly, but we’ve had time to prepare for it and since we mostly deal in natural and allergy-free products, so there hasn’t been as much impact on us as some of the flavour houses.”

Meal kit trend

As for current retail trends affecting ingredient supply, there is a significant increase in demand for own-label ‘cooking aids’, said Gardener, emphasising that such products add value to home cooking.

“People are buying ready meals, but are also keen on buying ready meal kits and cooking dinner from themselves – we see real potential for growth here,” he said.

“You can take this into traditional British cuisine as well, where consumers waste so much when they home cook at home with herbs and spices: this isn’t the case if you have a meal for four with sensible portion control. You simply have the herbs and spices supplied for one meal.”

Relief for organic meat industry as EC calls off nitrate ban

The Editor — Fri, 28 Jan 2011 15:39:37 +0000

Major players in Europe’s organic meat industry have expressed relief after the European Commission (EC) chose not to ban the use of nitrates and nitrites for curing products. (Foodnavigator.com)

Sodium nitrite (E250) and potassium nitrate (E252) are widely used in cured meats to prevent the growth of pathogens such as clostridium botulinum, the bacterium responsible for botulism, and add flavour and colour to products such as bacon.

But opponents claim nitrates are unsafe, where they form carcinogenic nitrosamines at high temperatures and have been linked with an increased risk of pancreatic cancer; a 2010 study published in the Journal of the National Cancer Institute also linked nitrates to chronic liver disease (CLD).

The EC set a deadline of December 31 2010 to review nitrate use before contemplating removing them from the list of permitted organic food additives under EC Regulation 889/2008, a move opponents claimed could decimate the EU’s organic bacon industry.

Safety and meat colour at stake

Last November, our sister site FoodManufacture.co.uk reported that EU agriculture ministries had returned a questionnaire sent out by the EC, asking them to report on progress in research on the replacement on nitrates and nitrates in organic food.

However, 16 of the 24 member states that replied to the questionnaire said they were not ready to withdraw use of these additives – 2 supported their wholesale withdrawal, 1 reduced levels – citing safety and meat colour as the principle reasons.

As an EC organ, the EU Standing Committee on Organic Farming met on Monday this week to and noted member state concerns, and citing concerns over botulism and listeriosis, colour and taste and the lack of viable alternatives.

For instance, plant extracts rich in nitrates cannot be used for legal and technical reasons, while sea salt (also with high levels) cannot be used because of obvious health concerns surrounding overuse of sodium chloride.

Nonetheless, the EC has proposed to review the future use of nitrates at a future, but as a yet unspecified date, which DEFRA (the UK department department for the environment, food and rural affairs) said would be in around 3-5 years time.

EC forced to back down

Clare Cheney, director general of UK-based Provision Trade Federation (PTF), which represent producers and opposed the ban, told FoodNavigator.com: “The EC was virtually forced to come to this conclusion – it really didn’t have any other option given the extent of Member State opposition.”

“It was a clear choice between having an organic bacon industry or withdrawing nitrates. There’s been extensive discussion and research into alternatives, but there are none.

“Plant extracts can be used instead of E250 and E252, but these are also high in nitrates so you are left with the same problem.”

Organic control body Organic Farmers & Growers said safety concerns had been paramount to it during discussions about nitrate withdrawal over the past 2 years. Chief executive Richard Jacobs said:

”While we prefer to see as few additives as possible in organic products, safety must come first and unless a proven alternative can be found, sodium nitrite and potassium nitrate will have to remain available to those curing organic meat.”

”The most likely outcome of their loss would have been the collapse of the market for organic bacon and related products, as many processors may have come down on the side of caution and abandoned product lines they could not be confident in producing safely.

“Nor does it seem likely that many shoppers would be willing to accept a change to a rather unappetising looking, greyish product.”

BSE can spread by air, study claims

The Editor — Fri, 28 Jan 2011 15:28:08 +0000

Slaughterhouses may have to install additional ventilation and air extraction systems after scientists discovered bovine spongiform encephalopathy (BSE) can be spread to livestock by air. (Meatinfo.co.uk)

They have found prions – the infectious agents triggering the disease – are not necessarily transmitted only by eating contaminated material.

The researchers from the University of Zurich, Switzerland, and the Institute of Immunology, Friedrich-Loeffler-Institut, Tübingen, Germany, say that the discovery could help to develop new defensive measures against the disease.

The scientists exposed mice to prion-containing aerosols and, after one minute, they all contracted the disease, with the prions infecting the brain directly from the windpipe and lungs.

“Precautionary measures against prion infections in scientific laboratories, slaughterhouses and animal feed plants do not typically include stringent protection against aerosols. The new findings suggest it may be advisable to reconsider regulations…” said a University of Zurich note.

The study was part-funded by European Union research projects ANTEPRION and PRIORITY.

Cranswick unveils new Yorkshire plant

The Editor — Fri, 28 Jan 2011 15:25:31 +0000

Sainsbury’s group commercial director Mike Coupe has opened a new Cranswick production facility at Preston, East Yorkshire. (Meatinfo.co.uk)

Coupe officially opened the facility by unveiling a plaque, following a tour of the new factory.

Cranswick is said to have invested £13m in the new facility, using robotic technology, to replace the original, built in the 1980s.

Livestock will be drawn to what is now Cranswick’s largest processing plant from across Yorkshire. The new facility will also ensure easy access to the factory for local farmers, the company added.

Cranswick CEO Bernard Hoggarth said: “After three years of planning and construction, it’s fantastic that the new facility is now complete and that Mike Coupe could join us for the official opening. This was the final stage in the development plan and I’m happy that we continue to offer a highly efficient operation at Cranswick to local pig producers and that this considerable investment ensures the highest levels of animal welfare going forward.”

Chicken giant’s last minute offer tempts Northern

The Editor — Fri, 28 Jan 2011 15:22:18 +0000

Chicken magnate Ranjit Singh Boparan has made an 11th hour £341m cash bid for rival Northern Foods – after he was given a ‘put up or shut up’ deadline by the Takeover Panel. (Meatinfo.co.uk)

Boparan Holdings, the company behind the 2 Sisters Food Group, is believed to have tabled the bid just minutes before a 7pm deadline – which had already been extended from 5pm following a hold-up with the financing package.

The bid values Northern Foods, the pizza and biscuit producer, at 73p a share.

The entrepreneur and his advisers from Rothschild are believed to have come to an agreement with Northern’s pension trustees – after the liabilities of the group were seen as a stumbling block. Northern Foods, whose main business is in supplying ready meals to supermarkets such as Marks & Spencer, is facing an annual pensions shortfall of about £25m a year.

Boparan hopes to put the skids under a proposed all-share merger with Greencore that was tabled last November and valued the company at the price of 50p a share.

Greencore will now be expected to sweeten the terms of its own £236m merger in order to convince Northern’s board to stick with the original plan. The Irish company has already made it clear that it regards the merger’s £40m synergy targets as conservative, while it could also be expected to inject cash into the deal in order to appeal to shareholders.

The bulk of Boparan’s private 2 Sisters business is supplying products to supermarkets. Its main customers are Tesco, Sainsbury’s and Marks & Spencer. It also supplies Lidl, Aldi, Morrisons and Budgens, as well as Kentucky Fried Chicken, and owns the Buxted poultry brand. Boparan bought the Harry Ramsden’s fish-and-chip chain a year ago and has built up a 6.6% stake in Northern Foods.