Associated British Foods Finance Director Discusses the UK-Based Group's Grocery Business in an Interview With just-food.comBy Just-food.com, PRNE
Monday, November 22, 2010
BROMSGROVE, England, November 23, 2010 - In an exclusive interview with just-food.com, Associated British Foods
(ABF) finance director, John Bason, discusses the UK-based group's grocery
business, which spans markets including the UK, the US and Australia, and the
impact that rising commodity prices are having on the company.
After ABF posted a 26% jump in underlying annual pre-tax profits,
just-food managing editor Dean Best spoke to Bason about the performance of
the company's grocery division over the last 12 months,
a business that includes Kingsmill bread, Patak's cooking sauces and Mazola
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Food manufacturers are feeling the pressure of rising commodity costs but
Bason insisted the impact on ABF had been "a mixed bag". Rising wheat and
edible oil prices are affecting margins at the company's UK bread and US
grocery operations, although soaring sugar prices in China have helped the
group's local sugar business. "We really benefit from these much, much higher
prices in China. They went two years ago to a low point more like CNY3,000 a
tonne - they are nearly at CNY8,000 a tonne now," Bason said.
Rising commodity costs mean manufacturers are asking for price increases
from their retail customers. Bason said ABF is no different. "When wheat
prices go up 50%, you have to talk to the retailers in terms of looking for
an increase in price."
Premier Foods, a main rival to ABF in the UK bread sector, has recently
had a number of its brands delisted by leading supermarket Tesco after the
grocer refused the manufacturer's request to increase prices. Bason said
talks with UK retailers over price were always "tough" but said ABF's own
negotiations were "progressing well."
This exclusive interview forms part of the in-depth insight available
from the leading food industry business intelligence resource just-food.com,
and is currently available within just-food's Open House.
As part of the open house - which runs until 2nd December - just-food is
offering unlimited access to its premium online service,
(www.just-food.com/registration.aspx?lk=ohpr2) which includes daily
breaking news, comment, analysis and research. Over a ten-year history,
just-food has built an unrivalled reputation as the premium provider of food
industry intelligence. This is a unique opportunity to see why it is an
integral tool for over 90,000 business executives in the food manufacturing,
retailing and supplier sectors.
"This is an outstanding opportunity for executives within the food
industry, from retailing and manufacturing, to get their hands on some of the
best insight into the trends and events affecting the sector there is
around," said Chris Brook-Carter, Editorial Director, just-food. "just-food
has been a subscription service for over eight years now and it is a model
that has allowed us to invest heavily in our content. On top of a breaking
news service that is accurate, timely and comprehensive, our dedicated
in-house team of analysts and reporters provide daily strategic insight into
how that news affects the industry.
"By opening our doors for this exclusive two-week period, we want to
demonstrate why we are the most trusted source of intelligence to over 90,000
just-food.com is the food industry's leading online resource. Under the
direction of Managing Editor, Dean Best, our experienced editorial team and
network of international analysts provide a unique blend of up-to-the-minute
information, insights and intelligence.
As a result, every month we help more than 90,000 executives to keep
abreast of the very latest industry developments.
Since 1999, just-food has established a reputation for delivering
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Contact: Chris Boaz, +44(0)1527-573-616, chris.boaz at just-food.com
Tags: Bromsgrove, England, Just-food.com, November 23, United Kingdom