Warburtons

[birch-chorley]

On 04/07/2020 at 19:59, Steejay said:

Unless you’ve been a supplier to the big supermarkets, you’ve no idea what cunts they are.

Milk, bread, produce, all of these suppliers are ground down to their knees.

They don’t give a fuck about businesses going under, they just want to increase profits.

Having worked in the industry for ten years I have to disagree to a certain extent 

‘Big Supermarkets’ have lost a huge amount of share to the likes of Aldi, Lidl and other discounters over the past ten years, predominantly because of lower prices 

In order to compete the big supermarkets have had to reduce prices, they do this by being leaner (job losses), making less profit and squeezing supplier profits 

The market dictates and that feeds through to suppliers, all on the back of the 2008 crash to be fair. Lets see what happens now, Tesco heading for a huge price war with the discounters (in particular Aldi) 

[Tonge moor green jacket]

Squeezing supplier profits. Said it there.

It's a race to the bottom, and supermarkets big and small are complicit, as are large sections of the public.

It's not a feasible option, but if all farmers got together, and picked on one chain and refused to supply for a week or two then there'd be shit everywhere.

[Sweep]

17 minutes ago, Tonge moor green jacket said:

Squeezing supplier profits. Said it there.

It's a race to the bottom, and supermarkets big and small are complicit, as are large sections of the public.

It's not a feasible option, but if all farmers got together, and picked on one chain and refused to supply for a week or two then there'd be shit everywhere.

We know that would never happen though, sadly. And even if it did, I'm sure the chain that was singled out would just say "fuck you then, we'll go and buy from South America (or wherever) instead"

it is though, predominantly consumer driven, always has been and always will be, so the race to the bottom will continue forever more

[birch-chorley]

I don't really know about own label or produce, my experience is all in branded 

However the big 4 Supermarkets haven’t had a great time of it in recent years, as businesses they are all worth about half of what they were 13 years ago before the financial crash. The pressure on household budgets fed through to grocery spending (thus the growth of Aldi etc) and that’s hit the top 4 very hard. If you look at the big supermarkets they have had a good few years in which they lost money, when they have been making profits its only circa 3% of Revenue which isn’t huge (Google etc 15%+) 

As you can imagine this has pressure works it’s way through the supply chain. Look at Warburtons, turnover more than half a billion each year but made a loss of £20m last year, historically they will make about £30m a year in profit (6%). However Warburtons are in a strong position as a family run business they can play a longer game and invest in the brand, something they have done very well at over the years 

Long and short, the pressure is being felt all across the industry, it’s difficult to point at any particular party and say they are creaming off huge profits at the expense of others  

[Tonge moor green jacket]

1 hour ago, Sweep said:

We know that would never happen though, sadly. And even if it did, I'm sure the chain that was singled out would just say "fuck you then, we'll go and buy from South America (or wherever) instead"

it is though, predominantly consumer driven, always has been and always will be, so the race to the bottom will continue forever more

I agree to an extent, but lets be honest, supermarkets have spent millions in behavioural studies, to capture ever more and more people and make them buy ever more. Much of which gets thrown away.

Last figure I heard was around 25% of all bread is thrown away. A disgrace.

Its not all consumer led any more, there is a lot of science and greed.