Vion gets its teeth into business of profit

PROFITS at Vion Food Group, the UK arm of the Dutch farmers’ co-op that bought Grampian Country Foods in 2008, tripled last year as cost-conscious shoppers chose cheaper cuts of meat.

Accounts filed at Companies House show pre-tax profits at the group, which has about 12,500 staff at 46 UK sites, jumped to £59.8 million in 2010, boosted by demand for bacon, ham and sausages.

Chicken sales also rose, with further products developed for customers including Asda, Marks & Spencer and Sainsbury’s. Beef sales were up but lamb sales dipped due to higher prices.

Vion Food Group said it had been forced to pass on higher grain prices to its customers, but added that it had also introduced discounts to attract shoppers.

Turnover for the firm fell to £13.5m from £17.1m but revenues at its core Vion Food UK subsidiary jumped to £1.2 billion from £562m.

Livingston-based Vion Food UK, which owns the Hall’s brand, narrowed its operating losses to £12.4m from £19.5m. The firm had laid off 830 staff in 2009, including 150 at Cambuslang. Hall’s recently unveiled plans to add 250 jobs.