FDBusiness.com

Sugar Dispute Results in Losses at Real Good Food Company

 Breaking News
  • Cargill’s European Poultry Business Expands into Poland Cargill has agreed to acquire Konspol, one of Poland’s leading value-added food companies, providing an array of products in the chilled convenience, frozen and cold cut categories. This acquisition marks the introduction of Cargill’s global protein business into the Polish market and strengthens the company’s global poultry footprint, expanding operations to 14 countries. Under the agreement, [...]...
  • Social Enterprise ‘Brewgooder’ Secures Biggest Ever Listing Scottish beer brand ‘Brewgooder’ has secured a new UK listing with Tesco that will significantly advance its mission to bring clean water access to one million people. Representing its biggest ever listing deal to date, the agreement will see the social enterprise supply single bottles of its popular Clean Water Lager to 481 Tesco stores [...]...
  • First Clean Label Liquid Margarine Bunge Loders Croklaan is launching Delica Pro Gold, its new, next-gen liquid margarine. The plant-based, clean-label margarine has been developed for artisanal and industrial bakeries. Delica Pro Gold is a liquid, non-hydrogenated margarine without E-numbers and contains no artificial colors or flavors. This innovative fat formula has exceptional functionality. “The real challenge was to create a liquid margarine [...]...
  • Global Aseptic Packaging to Grow 16% by 2022 The world market for aseptically packed products amounted to 152 billion litres in 347 billion packs during 2017, according to the new Global Aseptic Packaging report from leading food and drinks consultancy Zenith Global and packaging experts Warrick Research. Volumes have risen by 2.7% a year since 2012, with South East Asia achieving the fastest [...]...
  • Lactalis Expands in Infant Nutrition With €740 Million Acquisition Lactalis Group, the international dairy group based in Laval, France, is acquiring the Nutritional business of Aspen Pharmacare for €739.8 million (R12.9 billion). The business being acquired supplies a wide range of infant nutritional and growing-up milk products across both the premium and value segments. It manufactures and markets well established quality brands, including S-26, [...]...

Sugar Dispute Results in Losses at Real Good Food Company

Sugar Dispute Results in Losses at Real Good Food Company
August 05
10:02 2014

UK diversified food business The Real Good Food Company has reported a loss before tax and significant items of £1.0 million for the year ended 31 March 2014 due to a reduction of £7.6 million over the previous 12 months driven by a £7.2 million EBITDA reduction mainly in its Napier Brown and Garretts Ingredients businesses, which have been adversely impacted by a dispute with British Sugar, part of Associated British Foods.

The Real Good Food Company is a major distributor of sugar in the UK, and manufactures a wide range of baking ingredients, jams and sweet bakery products. Its portfolio of brands includes Whitworths Sugar, Renshaw and R&W Scott.

Group revenue from continuing operations for the year increased by 2.6% to £272.6 million reflecting overall volume growth across the group. Movements in base commodity costs in the year were managed effectively across the divisions with the exception of Sugar where the market reductions were not fully reflected in the group’s purchase price triggering the dispute with British Sugar.

“It would be easy to focus on the impact on our results caused by what we believe to be anti-competitive behaviour by British Sugar,” comments Pieter Totté, chairman of The Real Good Food Company. “The reduction in group EBITDA to £3.3 million hides significant progress in a number of operating divisions. In particular, the Renshaw result was very encouraging, while at Haydens it is clear that the new business model is beginning to deliver.”

He adds: “We remain in close dialogue with the Competition and Markets Authority and are hopeful that the regulator will take the necessary steps to ensure that competition law is enforced.”

However, the current sugar contract year does not end until 30th September, coinciding with the group’s half year, so despite continued strong trading at Renshaw and Haydens, the first half performance will still be materially affected.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 25, 2018PPMA Show 2018
  • September 27, 2018Int'l Fruit Show (eurofruit)
  • September 30, 2018Trade Fair for Butchers, Caterers and Meat Industry (Meat Expo)
  • October 1, 2018Poznan International Fair
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements