Boom time at Carlisle Cavrays factory
Last updated 13:10, Monday, 04 August 2008
Carlisle's Cavaghan & Gray food factory has seen a leap in sales as the credit crunch forces families to ditch fresh produce in favour of cheaper frozen meals.
The factory’s owner, Northern Foods, said sales in its frozen division, which includes the Harraby plant, have risen 7.8 per cent in the last three months compared to the same period last year.
The firm said the economic slowdown and rising food prices – and their effects on consumers’ pockets – were responsible for the trend.
Northern, which depends on Marks & Spencer for about 25 per cent of its revenues, said supermarkets across the UK and continental Europe were seeing a similar trend.
People are also ditching meals out in restaurants in favour of frozen ready meals at home, it added.
Stefan Barden, the company’s chief executive, said: “We have seen people beginning to change their shopping habits and we expect that to continue during the summer.
“We are seeing people trade down from chilled to frozen pizza and people who aren’t going to pizza restaurants so much are turning to ready meals.”
Overall, Northern Foods’ sales in its first quarter were up by 7.6 per cent, with the additional frozen food sales being balanced by lower revenues from products such as sandwiches, salads and ready meals.
The company warned it would have no choice but to pass on rises in the cost of basic ingredients to its customers, with commodity prices continuing to increase.
While flour, wheat and dairy product prices have already risen sharply, Northern expects the next round of price rises to come on meat.
Mr Barden added. “I think all manufacturers have to pass on costs to consumers (via their retail customers) or they will all go bankrupt.”
How depressing!! - so all the muck they make saturated in fat and salt will be be clogging up more arteries & creating an even larger generation of obese children and adults.
However small your garden or backyard is people will have enough room to grow some fresh healthy veg themselves, rather than making more profits for Northern foods.View all comments on this article
Have your say
people by what they can afford to feed their families.Just because food is processed doesnt mean its bad for you.If cavvys can weather the credit crunch so can carlisle . good news I think. mary veasey
Posted by mary veasey on 5 August 2008 kl. 17:08