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Thursday Jul 31
Northern Foods Reports
Yorkshire-based company, Northern Foods, has witnessed a rapid change in spending patterns since an increase in inflation.
Families are now buying more frozen foods instead of chilled fresh goods, and are exchanging expensive meals out for ready meals in.
According to Chief Executive, Stefan Baron, consumers should now expect meat and other protein prices to rise alongside flour, wheat and dairy, which have all increased sharply over the past year.
He warned that there could be a further round of price increases on the back of continuing inflation. "We would expect year on year prices to be generally rising rather than falling," he said.
Northern Foods has already increased the price of chilled food by 3pc, bakery goods by 2.5pc and frozen foods by 12pc as it tries to recover the rocketing costs of commodities and utility bills, which will cost it an additional £32m by March 2009.
The company predicts that annual pre-tax profits will be as expected, as revenues grow in response to an advertising campaign for Fox’s business and a move away from their unprofitable private label business.
FMCG News from Executive Network
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