Tag Archives: business

McCain to invest in Scarborough site

McCain Foods has announced plans to update its manufacturing facility at Scarborough in Yorkshire. Ahead of a formal planning application, the company has shared details of its plans for the site at Eastfield locally.

According to the company the £100 million investment is necessary to secure the success of the plant for decades to come and help it meet growing demand for new products. As well as upgrading equipment, the new plans include landscaping, an anaerobic digester to produce renewable energy and state-of-the-art odour reduction technology.

McCains’ Corporate Affairs Director, Bill Bartlett, commented, “This is a significant investment for McCain, and one that will allow us to meet the ongoing increased demand for our products, address long-term capacity and capability opportunities and deliver the latest technology and broader environmental benefits. This proposal certainly secures our operations in Scarborough and continued employment in the area for decades to come.”

The news comes just a month after the company said it would be closing its cold storage operations at the site, putting 74 jobs at risk.

The leader of Scarborough Borough Council, Councillor Derek Bastiman, said, “This is an extremely significant announcement from McCain, which cements the company’s commitment to Scarborough and the Yorkshire coast, and from which our area’s economy stands to benefit massively.”

Photo Caption: Artist’s impression of the new facility

Photo Credit: McCain Foods.

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Sorbet could give blackcurrants a boost

North eastern ice cream producer Beckleberry’s is launching a new sorbet which it hopes will cash in on blackcurrant’s reputation as a ‘super food’.

Growers also help that it will boost the profile of the fruit and increase demand. The Liquorice & Blackcurrant Sorbet will be pitched as an indulgent dessert with healthy benefits thanks to the fruit which is high in potassium, iron and antioxidants.

“We’ve always believed that when it comes to premium-tier desserts indulgence and health needn’t be mutually exclusive,” said Beckleberry’s MD Peter Craig. “We’ve always focused on more intense, adult-orientated palates, Tarragon & Passion Fruit, Sour Cherry & Amaretto and Blackcurrant & Kirsch, that preclude the need for unappetizing synthetic flavours.”

Photo Credit: Flickr

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Industry calls for trade agreement with Ireland

A group of leading representatives of the food and drink industries have written an open letter to the Government calling for an early agreement on future trade between the UK and Ireland.

Signatories to the letter included the Food & Drink Federation, Agricultural Industries Confederation, Fresh Produce Consortium, National Farmers Union and the Ulster Farmers Union. They point out that not only do the two countries share their only land border, but that the Republic of Ireland, ‘Buys more from us than the United States, China, Russia, Brazil, Canada and Japan combined. Nearly a fifth of UK food and drink exports go to Ireland, with more than a third of Ireland’s reaching UK shores.’ There is also a significant trade in raw materials between the two countries.

The authors of the letter represent the UK’s agri-food and drink sector which employs 4 million people, or 13.5 per cent of the UK workforce. They warn that, “A cliff-edge scenario that results in a sudden transformation to our trading arrangements with Ireland would be hugely damaging for our industry and for the wider economy on both sides of the border.”

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Plimsoll says value of fresh produce businesses increasing

The latest report on companies in the fresh produce sector by business analysts Plimsoll shows that many of them have increased in value by as much as 10 per cent over the last year.

However, the report also rated 182 of the 1132 companies studied as ‘Danger’. The authors say that 9 out of 10 previously failed Fresh Produce companies had been given the same Danger rating two years prior to their demise. However, with 562 companies rated as strong and 111 as good, it is not all bad news.

Plimsoll also says that 334 companies are ripe for takeover and 303 are making a loss. Report author David Pattison of Plimsoll commented, “In all, we have identified 86 businesses that have increased in value by at least 10 per cent and their financial performance adds to the belief that the overall market is continually improving.

“Having said that, we have seen 88 businesses that have seen their value fall by over a third and it is clear that, although the market is improving, it is still a challenging landscape.”

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Bedfordshire Growers launch dried sweet onion

Grower co-operative Bedfordshire Growers launched a new product at Fruit Logistica last week: dried sweet red onions.

Managing Director Stephen Hedderly told reporters that the product was produced simply by dehydrating the company’s sweet red onions without any additives and that they could be used as a healthy alternative to fried onions or even as a snack instead of crisps or nuts.

“We have customers all over the world but there is always a grade of product that people don’t want, and this is a way of using that product,” he said. “We launched the red sweet onions two years ago on Valentine’s Day, and we have overachieved on sales. We’re very pleased.”

Photo Caption: Sweet red onions were first introduced by Bedfordshire Growers two years ago.

Photo Credit: Bedfordshire Growers.

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Accounts show potato suppliers profiting

According to reports, Scottish-based Bartlett International Holdings, which owns Albert Bartlett, saw its pre-tax profits for the year ending 31 May 2016 fall by a third to £5.513 million, down from £8.198 million the year before. However, turnover increased 3% in the same period.

In his director’s report, Mr Bartlett blamed the drop in profits on “competitive pricing pressure” and start up costs in relation to the launch of the company’s new frozen business. “Whilst the trading environment presents challenges, the group continues to develop and promote the Albert Bartlett brand and remains fully committed to the development and success of our exclusive premium varieties and our own label offering,” he said.

Elsewhere, Lincolnshire-based Manor Fresh, which supplies potatoes and other produce to M&S showed a slight increase in pre-tax profits for the year to 30 April 2016, up from £1.4 million to £1.6 million. Turnover during the period also increased, rising from £57.1 million to £60.3 million. The firm also reported that the sale of green vegetables was “particularly strong.”

Photo Caption: Potato grading at Manor Fresh.

Photo Credit: Manor Fresh.

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Tesco to revamp distribution network

Changes to Tesco’s distribution network will see the closure of two depots and the loss of 1,000 jobs, the company has said.

However, the changes, which include the closure of Welham Green and Chesterfield distribution centres, will also create 500 new roles. Welham Green’s grocery operations will move to the Reading distribution centre, while the majority of general merchandising will move into one distribution centre at Middlesbrough. The company is also withdrawing from a warehouse shared with logistics firm DHL in Daventry, Northamptonshire. Clothing operations there will move to the nearby Tesco Daventry distribution centre.

Tesco UK and ROI CEO Matt Davies commented, “As the needs of our customers change, it’s vital we transform our business for the future. As part of this we are proposing to close two of our distribution centres in the UK. These changes will help to simplify our distribution operations so we can continue to serve our customers better.”

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Preva Produce in administration

According to reports, Norfolk based potato supplier Preva Produce has been placed in administration.

The company is now up for sale with 20 job losses anticipated due to significant cash flow pressures and difficult trading conditions. Creditor interests have been safeguarded and the possibility of selling parts of the business is being explored, according to joint administrators Matt Howard and Stuart Morton, of accountancy firm Price Bailey.

Operations at the company’s 29,000 sq ft packhouse, in Snetterton were suspended in November, and a sale has been agreed subject to contract. “The management team are working with Price Bailey to review the company’s position and to formulate a strategy. Unfortunately, it has been necessary to make 20 redundancies, leaving 11 staff remaining,” said Mike Howard.

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“Over 7,000 jobs to disappear in Dutch agriculture and horticulture”

According to a report by the Dutch Employee Insurance Agency (UWV), more than 7,000 full-time jobs could disappear from Dutch agriculture and horticulture by 2020. However, there may be more opportunities for gardeners and growers.

The number of jobs in the agricultural and horticultural sectors has been falling for several years, with 51,000 full-time jobs being lost since 2000. Declining employment is partly due to increases in efficiency and automation as the industry tries to increase productivity while reducing costs, including labour. However the growth of the housing market means there is a higher demand for landscaping and garden services.

Not only does this affect those who work as gardeners, where there is a shortage of workers during the peak season, but there are also opportunities for specialist growers such as flower bulb producers. The report also points out that while the number of permanent jobs is dropping, the use of flexible workers in agriculture and horticulture has increased to compensate. Currently nearly a fifth of employment in the agricultural sector consists of flexible workers.

Photo Caption: Cost reduction measures are reducing full time employment opportunities

Photo Credit: Wikipedia Commons

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Supermarket sales drop below £100 billion

Supermarket sales have sunk below the £100 billion mark for the first time in six years as competition in the grocery sector, particularly between discounters and traditional retailers, increases.

Food retail revenues dropped by 3 per cent to £99 billion in the second quarter, according to a study by The Share Centre. Industry observers say that the UK launch of online grocery service AmazonFresh could make the sector even tougher.

Helal Miah, investment research analyst at The Share Centre, said that intense price pressure and competition from discounters have made it a difficult time for Britain’s supermarkets: “It has been a tough couple of years for UK plc, battling against global economic headwinds and sector-specific problems that have beset commodities, energy, and food retailers.”

He also warned that economic uncertainty, triggered by the EU referendum result, could also harm retailers’ sales. “The implications of the economic slowdown will mean lower demand for sectors such as house builders and retailers, while the travel industry is already feeling the effects,” he said.