BACON and sausage producer Cranswick yesterday warned that attempts to pull in hard-pressed consumers by slashing its prices would squeeze the business this year.
The company, which supplies the Jamie Oliver brand as well as Sainsbury’s and Tesco, reported a 10 per cent jump in sales in the three months to 31 March across all its products.
But the Hull-based group, which was formed by farmers in the 1970s, said that, while lower pricing in the period had boosted volumes, it will squeeze margins this year.
Elsewhere, Cranswick said it had sold its 49 per cent stake in cooked meats business Farmers Boy to the joint-venture’s partner supermarket Morrisons.
The company reported sales of £758 million and pre-tax profits of £47.1m in the year to 31 March. Clive Black, an analyst at Shore Capital, said Cranswick had delivered a “very healthy” fourth-quarter performance.