Food Manufacturer News: January 2010 Archives

Despite encouraging news that an official and powerful new watchdog was being set up to help settle disputes between farmers and supermarkets, the Government have now announced that the appointment of an ombudsman will be on hold until after the general election. This has come as frustrating news to many, leading to accusations that labour ministers are 'dithering' over the issue.

The need to establish an official ombudsman was highlighted by the Competition Commission back in 2008, and it was expected that there would be an appointment by now, yet the Government have only offered a further consolation on the role and powers of the watchdog when appointed. The ombudsman will have the power to:

• Hear producer complaints over allegations of abuse from supermarkets and other retailers
• Establish and enforce a code of practise between producers and retailers, and between disputing parties
• To prevent retailers from passing excessive, sudden costs down to suppliers

These basic responsibilities are expected to be in place, but the consultation could see changes and new responsibilities added during the planned consultation, which will see everyone including MP's, farmers, supermarket bosses and union representatives weighing in with their opinions. One thing is for certain however, the eventual appointment of an ombudsman will make working relations easier for those in both production and retail food jobs.

According to the Enterprise Minister for Northern Ireland, Arlene Foster, Irish food companies seem to be beating the recession through increased sales outside of the country. Northern Ireland is a major supplier of food and drink to Britain, the Irish Republic and even farther afield, and both sales and employment have increased due to recent success in output sales figures.

Ms Foster has released figures demonstrating that output has increased by 10% and employment by 2.9%, providing a big boost to those looking for food jobs. Northern Ireland already employs over 19,000 people in food jobs, and this figure is set to rise if the current market success is sustained.

Other encouraging facts and figures:

• At the last count, the food industry in Northern Ireland was worth £3 billion a year
• £600 million worth of products were sold to non-UK markets
• The Northern Ireland food and drink industry provided 15% of all total products exported from the country
• The proportion of goods sold outside of Northern Ireland has risen to more than 60%

These impressive figures are proof of the industry's success, which the Enterprise Minister believes can be attributed to a number of factors, notably, the strong partnership between farmers and producers. The minister also praised the originality and quality of exported products, and the professionalism, focus and dedication to excellent customer service shown by food and drink companies, which she also believes are a large part of the industry's success.

Analysts at investment company Brewin Dolphin are predicting a bright future for the British sugar industry, as stabilising prices have boosted European sugar exports. This comes as good news for the food industry as a whole, which has seen growth and excellent sales performance recently even despite the current global economic industry, as well as for those in food jobs.

There has been significant upheaval in the European sugar industry in the last few years, mainly due to the restructuring of the EU Sugar Regime. Now this has ended, prices have stabilised. What's more, due to rocketing prices in the rest of the world, this means that the potential for export of British sugar products has greatly increased, leaving the market wide open for growth and development.

According to Brewin Dolphin, the food processing company Associated British Foods (ABF) stands to profit the most from the current situation, and it is subsequently predicted that sales figures and expansion opportunities for the ABF will improve dramatically in the next two to four years.

As for the recent and controversial Kraft takeover of Cadbury, analysts are predicting that there will a positive outcome for the British sugar and confectionery market. This is because former Cadbury investors can now and put their cash into other companies such as ABF and Tate & Lyle, who are expected to take full advantage of these stabilising sugar prices.

Despite extremely worrying reports and speculation that US company Kraft Foods would cut thousands of food jobs once the Cadbury takeover deal was complete, it has now been revealed that Kraft wants to create more UK food jobs in the future. After re-assessing the situation at Cadbury, representatives from the US food giant have reportedly said that in the medium to long-term, they are actually planning to create more jobs for workers in the UK.

As Kraft's operational strategies are very different to those of Cadbury, these new jobs are expected to be created in the fields of marketing and investment in order to enact a smooth transition. However, if Kraft are to believed as to their intentions for the British company, there may be opportunities for skilled food workers in other fields as Kraft expands into new ventures rather than the 'asset stripping' that many believed would happen as a consequence of the acquisition.

Some commentators believe that Kraft may be simply providing both the government and the press with this reassurance in order to improve opinion of the multi-million pound takeover deal. If created, these new food jobs will provide a definite boost to the UK employment market and the economy, so all fingers are crossed that Kraft follow through on their promises.

Recent statistics have revealed that the top UK market performers of 2009 were fast-food giants McDonald's, demonstrating that the food and drink industry really is leading the way when it comes to beating the recession.

McDonald's managed to achieve record breaking sales last year, with figures for like-for-like sales coming in at 11% more than the previous year. They also managed to attract 7.5% more customers. McDonald's bosses believe 2009 was so successful for the company due to consumers need for good food at recession-busting value prices. This is shown in the popularity of particular products at McDonalds, with more customers preferring the 'saver menu' as well as the 'little tasters' value offer.

Expansion and new food jobs
Due to last year's resounding success, which saw the company create approximately 6,000 new food jobs due to the opening of new outlets, McDonald's are reportedly planning even more expansion for 2010. Ten to fifteen new outlets are currently in the pipeline, and will mean there will be a further 5,000 food job opportunities opening up.

McDonald's UK not only managed to outperform all other UK retailers, but they also managed to outdo the global McDonald's group. However, overall group income is currently up 6% from last year.

Tesco, one of the UK's largest and most successful supermarket chains, has been forced to revise and resubmit plans for a new store in Hadleigh in Suffolk, after the previous proposals were criticised for being too ambitious. Consequently, Tesco store planners have scaled down the size of the proposed new store by approximately one sixth of its original size, and have resubmitted a planning application to Babergh District Council.

Even at the scaled-down size, the new Tesco is expected to create around 200 new food jobs for the area, as well as attract a wealth of new shoppers to historic Suffolk town of Hadleigh. Despite criticism that the site for the new store is too close to the river, will cause traffic flow problems and damage trade in the high street, Tesco has been supported in its plans by a loyal group of residents, calling themselves 'Hadleigh's Tesco Supporters Group'. These Hadleigh residents have been campaigning for a Tesco to open in their town for over ten years, and it seems likely they will finally get their wish.

Tesco and other supermarket giants such as Asda, Aldi, Sainsbury's and Co-operative Food, have all been opening a number of new stores recently, which is a positive sign that the food industry is in good health and is continuing to expand. Being some of the top graduate employers in the UK, these major companies, at this highly successful time, are looking like an increasingly good prospect for food job hunters looking for career progression and job security.

At the National Farmers' Union in London last week, the chief executive of the Assured Food Standards (AFS) organisation, David Clarke, announced new scheme aiming to harmonise food standards in the UK.

The scheme, entitled 'Red Tractor Farm Assurance' is designed to help those in processing and manufacturing food jobs to navigate farm standards more easily, and will eventually involve the merging of other farm assurance logos into one, the Red Tractor logo.

Mr Clarke, explaining how the scheme will benefit both manufacturers and retailers, said that he believes the new scheme will ensure consistency throughout all sectors. Although the details of the standards themselves will remain the same for the most part, it is the universal use of common terminology that Mr Clarke is focusing on. As for previous farm assurance schemes, these will all be gradually renamed to be part of the unified Red Tractor family; the Assured Dairy Farms Scheme will now become Red Tractor Farm Assurance - Dairy, and so on.

The new scheme will start to come into effect immediately, with farmers and those in other relevant food jobs being issued with a manual by February, which will explain how they can meet industry standards in time for official inspections in April.

With all of the top supermarkets battling it out to perform well and achieve the highest sales figures over the previous Christmas period, there has been much speculation over who has come out on top. Recent reports have measured supermarket success by comparing growth in sales figures, and it seems that luxury supermarket Waitrose has emerged as the leader of the pack.

New figures have revealed that Waitrose, part of the John Lewis family, achieved a 17.6 per cent growth in sales over the Christmas period, its biggest sales figures and most improved market share since 2005. Waitrose's success has been attributed to the opening of new stores, a move which also created hundreds of new food jobs, as well as the quality of their products.

After a bumper Christmas for retailers all round, it seems evident that customers have recovered from the recession to the extent that they are starting to choose quality over value again, especially when it comes to stocking up for Christmas.

Growth in the sales figures of other supermarkets are currently the following:

• Morrisons - 12. 8 per cent
• Sainsbury's - 8.6 per cent
• Tesco - 8 per cent
• Asda - 5.9 per cent
• The Co-op - 4.8 per cent

These figures are certainly good news for retailers, and also for the economy, but it is also beneficial for food job hunters as these major companies will be looking to expand with new stores and product ranged if growth in sales figures continues.

Sainsbury's, one of the UK's largest supermarket chains, is reportedly planning to open two new mini supermarkets in Bristol city centre. The stores are classified as 'local' branches, similar to the Tesco Metro-style stores. In addition to an existing Sainsbury's Local branch in Horfield in the area, two new stores will be opened next week in Broadmead and Broad Quay, creating a total of 61 new food jobs.

The two new stores will both have the following:

• A selection of everyday food items, fresh food and bakery products, and a small section of non-food items.
• 5,000 square foot of combined sales space
• Three cash machines and three self-scan checkouts
• A 'Bag for Life' scheme in operation to help customers recycle

These new Sainsbury's stores are expected to not only provide those living in the Bristol city centre area with a more convenient source for everyday items, but it will also boost the area's job market. Sainsbury's is a brilliant graduate employer, offering a wide range of food jobs in many areas of food retail. It may be a good time to get on board.

The close of this week is expected to be a busy and exciting one for market commentators looking for signs of recession recovery from high-street retailers, as supermarket Morrison's releases Christmas sales figures. Two of the big four supermarkets, Tesco and Sainsbury's, have already reported figures, but Morrison's is expected to surpass both companies. However, Asda have yet to report sales figures for the festive period, so the number one spot could still be for the taking.

Sainsbury's reported a 4.2 per cent growth for the period, whilst Tesco is currently the front-runner with a 4.9 per cent same-store growth. However, expectations are high for Morrisons to achieve a 7 per cent increase for the festive period. This is based on two factors:

• Impressive past performance in the same period for the last two years
• The new direction the company has embarked upon since Marc Bolland took over as CEO

Bolland has recently left the company to work for rivals Marks & Spencer, leaving a question mark over who will head the company for the future. This hasn't affected sales, as the company is still benefitting from Bolland's successful business model, but uncertainty has meant that shares may be affected.

One thing is for certain, Morrisons is looking an excellent prospect for customers and food job hunters alike. Continued momentum in sales figures means more development and expansion; encompassing new product ranges, which requires more skilled workers in the field of food technology, and the opening of new stores which will create thousands of new food jobs.

One of the UK's most prominent food producer, Premier Foods, is set to beat expectations by announcing full-year sales figures of £2.6 billion on February 16th. Although this phenomenal figure is impressive, the company has been doing consistently well for some years now, and the 2009 figures show only a 2.2% increase from the previous year's results.

Premier Foods attribute their success chiefly to the sale of branded goods, accounting for £1.7 billion of the total figure or 63 per cent. What's more, branded goods within the groceries section, which accounts for around 60 per cent of total turnover, has increased by an impressive 8%, especially in the fourth quarter. This period included Christmas and New Year, which no doubt gave sales a considerable boost.

Particular products and ranges that performed well included:

• Ambrosia desserts range
• Loyd Grossman sauces and ready-to-eat range
• Batchelor's soups
• Mr Kipling Christmas Puddings
• Hovis branded bread

The success of Premier Foods in the previous year is good news for both investors and those looking for food jobs. A successful, profitable company and all the associated high-profile brands such as Ambrosia and Hovis means there is likely to be plenty of opportunities for food jobs opening up this coming year, making it a perfect time to get on board.

Due to record customer numbers over the Christmas period just gone, the UK's third largest supermarket, Sainsbury's, was able to report a huge rise in sales figures this week. The company apparently served approximately one million customers per week over the last quarter, a figure which peaked at a record 24 million in the week before Christmas.

Despite a decrease in food price inflation, Sainsbury's managed to convert these high customer numbers into exceptionally high comparable sales figures. The company achieved a 3.8 per cent rise for the third quarter, which contributed to an overall sales increase of 6.2 per cent.

These impressive figures were boosted by the opening of 8 new stores during the quarter, meaning that 32 more stores than last year were open in time for Christmas. As well as helping the company to increase overall sales, these new stores have also created hundreds of new food jobs and helped the company to sustain growth.

This is good news for anyone looking for a food job, as the success of Sainsbury's demonstrates the strength of the food retailing industry despite the global recession. Large supermarket chains such as Sainsbury's, Asda, Aldi, Waitrose and Tesco are all excellent companies to work for, offering more job security and possibilities for career progression than businesses in most other industry sectors.

Despite the ongoing global recession that has hit a number of companies in all industry sectors, Domino's Pizza has recently revealed that sales for the latest quarter have grown exponentially. Due to an 8.6% per cent rise in like-for-like sales in all 501 of its UK stores in the last three months, Domino's are anticipating that sales figures at the end of the year will more than exceed expectations.

Domino's Pizza, who are already one of the largest pizza delivery companies in the UK today, opened 55 new stores in 2009, meaning that they now have a total of 608 stores operating in the UK at present. The new stores created in excess of 1,500 new food jobs, which brought their total workforce up to approximately 20,000 employees. The addition of these new outlets has also meant that compared to the same time last year, sales figures have increased by 15.6 per cent to £112.4 million.

City experts believe that the success of Domino's Pizza can be attributed to a number of factors: the number of new stores, short-term tactical promotional strategies and campaigns like the sponsorship of 'Britain's Got Talent', and a greater focus on improving online sales.

For those looking for food jobs, the current success of the company seems to indicate that now is the perfect time to get involved. Both job security and potential for career progression are incentives offered by this burgeoning UK employer.

It seems that Tesco is developing some of the best staff members in the country. It has recently been revealed that the supermarket is the new hunting ground for talented senior staff.

The food store has been described as The University of Management because staff there learn the very best in management practices and are then unleashed into the employment market to take on other food jobs. Headhunters are fighting for the chance to employ staff from Tesco because any manager of a Tesco store will have been dealing with a billion pound turnover and they will also have a knowledge of how to produce the best standards, because in a new job, they will have a standard of 'how can we beat Tesco'. In an era when Tesco has been described as taking over the world, this is invaluable.

The other bonus of employing talented staff members from Tesco is that they will have had a huge responsibility in their job. Because of the enormity of the company, no matter what they were responsible for, there is no doubt that it will have been big.

It seems that the supermarket giant is a real talent pool that other companies have got their eyes on. But beware, because once you take on a food job with Tesco, you are well and truly thrown into the deep end. But then, that's the best way to learn.

The Co-operative is seeing a slight change of image due to a new marketing strategy which will bring the food company together with Somerfield.

A new advertising campaign is set to highlight the fact that The Co-operative is able to offer incredible value deals because of its joint campaign with Somerfield.

And the food group is using two real members of staff to front the campaign. The couple really have bagged themselves food jobs with a difference. Store supervisor from The Co-operative and Somerfield checkout operator Tomieka Shiell were chosen for the job because it was found that customers connected with them. They had initially been chosen as internal communicators for Somerfield and The Co-op.

The campaign aims to highlight how customers can benefit from the combination of The Co-op and Somerfield.

The Co-op acquired Somerfield in March after a £1.6 billion deal. Since the, Co-operative products have been phased into Somerfield stores. The next step is to re brand Somerfield under the Co-op banner and it is hoped that this will be completed by 2011. this new step will really highlight how customers can benefit from choosing The Co-op/Somerfield brand.