Sausage squeeze: Low prices will hit margins for pork producer
30 March 2012
A supplier of sausages and bacon to supermarkets today warned that attempts to pull in hard-pressed consumers by slashing its prices would squeeze the business this year.
Cranswick, which supplies the Jamie Oliver brand as well as Sainsbury's and Tesco, reported a 10% jump in sales in the three months to March 31 across all its products.
But the Hull-based group, which was formed by farmers in the 1970s, said while lower pricing in the period had boosted volumes it would squeeze margins this year.
Elsewhere, Cranswick said it had sold its 49% stake in cooked meats business Farmers Boy to the joint-venture's partner supermarket Morrisons.
