Strategic Report
Other Celebration Cake Licences Tese four major brands are complemented by a range of other licences which are particularly focused on driving Celebration cake sales. Evergreen properties such as Peppa Pig, Hello Kitty, and Me To You, are complemented by more trend led licenses such as One Direction and, later this year the new Despicable Me offer, to provide a compelling offer across all key target markets. Tis portfolio of licenses has played a key role in growing our market share of the UK Celebration cake market.
Speciality Bread Licences Nicholas & Harris bakery has three brands which it continues to develop and market under the long-term licence agreements, along with LivLife which was developed and launched by Nicholas & Harris. In what has been a volatile and turbulent year in the bread market with sales declining 3.4% in value and 2.3% volume, Vogel’s, Crank’s and Te Village Bakery Rye breads have maintained their position. Te repositioning of Vogel’s from ‘Experts in Seeds and Grains’ to ‘Crammed to Bursting’ have given additional traction to the PR activity, gaining new followers on Facebook and now over 2,000 new Twitter followers. Village Bakery continues to demonstrate a loyal customer following, with further interest being shown in the sector where the use of ‘no added wheat’ is a key part of the brand. Cranks is being relaunched this year with the main focus still being on ‘real bread’ but with the added addition of vegetables. Tis is being supported by PR and advertising campaigns later in the year. LivLife having been launched in July 2013, is showing continued interest in both people who wish to reduce carbs and people who have diabetes type 2.
Overseas Te Group’s 50% owned Company Lightbody Stretz Ltd, supplies and distributes the Group’s UK manufactured products and third party products primarily to Europe.
Principal Risks and Uncertainties Te Group operates in an environment which is continually changing and as a result the risks it faces will also change over time. Te assessment of risks and the development of strategies for dealing with these risks are achieved on an ongoing basis through the way in which the Group is controlled and managed internally. A formal review of these risks is carried out by the Group on an annual basis. Te review process involves the identification of risks, assessment to determine the relative likelihood of them impacting the business and the potential severity of the impact, and determination of what needs to be done to manage them effectively.
Te Directors have identified the following as the principal risks and uncertainties that face the Group.
Competitive Environment and Customer Requirements Tere is currently over capacity in the market place and competition is strong between manufacturers in the Bakery sector. Te monitoring of key performance indicators at customer level such as service levels and customer complaints is part of the risk management process associated with this specific risk. Strong customer service, quality products, low costs and innovative new product development are areas of focus to satisfy customer needs and remain strong in a competitive environment. Te Group has invested heavily in category management, new product development and marketing skills. Tis investment has helped create an insight into customers and consumer demands. Continual monitoring of customer KPI’s and production quality measures take place to ensure customer requirements are being met and issues are identified in a timely manner to limit their impact.
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