Northern Foods cuts its losses
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Manufacturing News, Source : The Manufacturer US
Published : 27 Mar 2008 17:10
Northern Foods is to cut some of its less profitable products in order to increase its operations in faster-growing markets.
The company will discontinue several own-brand foods due to the unprofitability of the supermarket contracts, meanwhile it will look to develop products with higher profit margins, such as Goodfella’s pizzas.
Northern Foods said that its annual profits are expected to be at the top end of expectations, and that rising input costs have not posed too many problems, despite being forced to raise its average prices by up to 2.4 per cent.
“We are operating in a volatile trading environment with inflationary commodity prices,” said chief executive Stefan Barden. “We will continue to eliminate low margin and low volume products from our range.”
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