Product news


UK food manufacturers experience profits freeze Food manufacturers saw a stall in profitability over Christmas quarter


By Clare Nicholls


New analysis has found that UK food manufacturers suffered a challenging trading period over the crucial Christmas quarter. Food was the only manufac-


turing category to see profitabil- ity stall on inventory in the latest Manufacturers’ Health Index – a report of mid-sized manufactur- ers’ performance compiled quar- terly by inventory management software brand Unleashed. Most other categories saw an uplift, while only three saw a decline. The report reveals data on gross margin return on inventory – a measure of the profits made on inventory costs – across 16 man- ufacturing categories. Manu- facturers were also surveyed to gain first-hand insights into the


News in brief


Bunzl Catering Supplies has used the Relex Solutions


platform to support supply chain planning, demand planning and cross-functional collaboration across its operations. Since implementation, the supplier has improved product


availability and reduced manual workloads.


InchDairnie Distillery has signed a three-year distribution agreement with Disaronno International UK. The deal is the extension of a partnership between the two companies, as Disaronno International BV already distributes the InchDairnie portfolio across the Benelux countries.


Momo Kombucha is rolling


out is glass-bottled flavoured kombuchas to Gail’s Bakery nationwide from this month.


Momo co-founder Josh Puddle said: “I admire Gail’s because of the way the business has scaled while retaining the high quality they’ve become known for – no easy feat.”


2023, up from £1.40 the previous quarter. Jarrod Adam, head of product


Food manufacturers’ profits were the same in Q4 as the previous quarter


specific challenges and opportu- nities they face. Food manufacturers made


an average of £1.44 for every pound invested in inventory – the same as the previous quarter and


lower than Q4 2022 when it stood at £1.48. The food sector lagged behind


drinks manufacturers, which made £1.51 for every pound invested in inventory in Q4


at Unleashed, said: “Food man- ufacturers were treading water towards the end of 2023, with no uplift in inventory profitability over the Christmas and New Year period. This stands in contrast to most other areas of manufac- turing, which have seen growth. Overall, the businesses we sur- veyed were optimistic about 2024, with almost three-quarters saying they expect demand to grow.” The report suggests that food manufacturers are still con- tending with high costs. Daniel Wang of Oriental Food Express said: “Continuously increasing raw material costs, labour costs and energy costs all reduce the company’s profits.”


Suppliers join forces to create fruit juice firm


The joint venture, called THG Trading, will offer fruit and vegetable juices, purées, concentrates and ingredients


Two ingredients manufacturers, Th Geyer Ingredients and Sym- rise UK, have established a stra- tegic joint venture within the fruit juice industry called THG Trading. The new company, registered


in Marlow, Buckinghamshire, comprises a long-established team that was formerly part of fruit juice supplier Cobell, which Symrise acquired in 2017. THG Trading will offer a portfolio of fruit and vegetable


products@thecaterer.com


juices, purées, concentrates and ingredients. The deal to create the new com-


pany saw Symrise UK divest 51% of its existing fruit juice ingre- dients subsidiary to Th Geyer Ingredients. The terms of the transaction were not disclosed. Markus Krekeler, managing director of THG Trading, said: “This collaboration marks a significant milestone as we join forces to create a dynamic


partnership with a shared vision for success.” By entering this joint venture,


Th Geyer Ingredients wants to accelerate its successful busi- ness performance across Europe and the Middle East. As a partner for customised products and concept development, the com- pany has been growing stead- ily over the past few decades and feels its value proposition goes far beyond distribution.


www.thecaterer.com


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