Grocery supplier Princes sees canned goods demand jump on UK stockpiling push
Princes Group said on Tuesday that demand for its canned fish, meat and vegetables had increased since the UK government launched a campaign encouraging households to stockpile emergency supplies.
The demand for essentials has risen since late October when the government asked households to keep three days of bottled water and non-perishable food to boost preparedness amid internet outages, unprecedented heat, drought and wildfires.
“The increase in demand for our ambient food products following the UK Government’s Be Ready campaign, further reinforces the relevance of our core categories,” interim CEO Giuseppe Mastrolia said in a statement without disclosing any precise details.
Princes, which owns Princes Tuna, Napolina sauces and Branston beans, is also benefiting from consumers eating at home more often amid the cost-of-living crisis.
The company is also raising prices to combat higher costs due to the Iran war and inflation and is in negotiations with its customers, which include supermarkets and convenience stores, to pass on these costs.
Its revenue increased 10% to £1.52 billion ($2.04 billion) in the nine months to September, driven by acquisitions in France, Germany and Italy. The company reaffirmed its full-year outlook and said it was making progress to achieve its medium-term adjusted core profit margin target of 9%.
Princes’ shares, already down roughly 18% so far this year on concerns about costs, slipped 2% in early trade.
Source: Reuters
