The economy and battle for share in the UK’s potato sector has been laid bare as profits at two of Britain’s biggest growers and packers have fallen despite considerable increases in turnover.
In the year ending 31 May 2011, turnover at Albert Bartlett & Sons increased by 13.1 per cent from £114.9 million to £130m, yet pre-tax profit fell to £6.7m from £9.9m the year before.
At Branston, in the year ending 31 July 2011, turnover was up 14 per cent on 2010 at £123m compared with £108m in 2010, while pre-tax profit sank by 81 per cent to £2.2m. The results come after a 39 per cent pre-tax profit climb in the previous financial year, but MD Graeme Beattie warned at the time that the 2010-11 performance would be drastically different due to spiralling input costs and heavy supplies of potatoes.
Albert Bartlett directors said they were satisfied with the firm’s performance given the tough economic climate. “Price competition at trade and consumer level is intense as both retailers and manufacturers position themselves in a bid to grow market share and drive efficiencies,” they said in the report.
In April 2011 the Bartlett group established Albert Bartlett USA, a subsidiary to operate within the North American market.
The company said: “In the year ahead members of the team will spend time scoping the opportunityfor the business and its brands in the US and Canadian markets. “European opportunities will also be developed for branded products in the US and businesses will continue to form strategic partnerships to best serve local markets,” it added.
Bartlett’s core marketing activity included a four month long Roosterbrand TV campaign featuring Hollywood star Marcia Cross.
