Nairn's profits crumble as buyers change habits

OATCAKE manufacturer Nairn's has admitted it lost out during the recession to cheaper supermarkets that do not stock its products.

The Edinburgh-based company revealed a 2.6 per cent drop in sales on last year, with figures totalling 14.3 million.

Operating profit was reduced by around 325,000 to 2.3m, mainly as a result of increases in promotional expenditure.

Financial director Ken McGarrity said: "During the recession, shoppers changed their habits to shopping at stores such as the limited range discounters, where Nairn's products are rarely stocked."