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  #1   ^
Old Mon, Jul-08-19, 00:35
Demi's Avatar
Demi Demi is offline
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Default Bakers notice decline - as Brits ditch bread for low-carb diets

Quote:
8 July, 2019

Bakers notice decline in dough - as more Brits ditch bread for low-carb diets

Sales take a hit at UK breadmakers Warburtons, with sales falling for the third year in a row, as Brits adopt low-carb and gluten-free diets


Sales at bread makers Warburtons have taken a hit as shoppers ditch bread in favour of low-carb diets.

Loaves sold at the family bakers have fallen for a third year running, according to documents filed with Companies House.

Sales dropped 3.5% to £506 million from September 2017-18, while profit slumped from £20.7million the previous year to a pre-tax loss of £13.5million.

The firm has attributed this to a “continuing decline in the core market” as well as some one-off restructuring costs.

And consumer experts claim the bread market is shrinking with growing numbers opting for gluten-free or low-carb diets.

“Bread is in long-term decline,” said Aimee Benson, consumer insight director at market research firm Kantar.

“The industry is trying to reinvigorate, adding seeds and looking at bagels or wraps, but it’s still not really saving the category.

“More and more people are choosing gluten-free options, perhaps buying bread less frequently or choosing to remove bread from their diets altogether.”

The £1.5 billion wrapped bread market has been falling steadily for the past five years, according to the consumer expert.

While the market for ‘free from’ products is growing and is now estimated to be worth £2.2billion.

Warburtons is said to be hoping its new bagel and wrap categories can help tide declining sales, with Robert De Niro fronting their latest ad campaign.

The 75-year-old Goodfellas star visits Bolton in Warburton’s two-minute commercial, which features the Hollywood legend playing a New York ‘bagel boss’.

It is not known how much it cost to get the Oscar winner onboard for the ad, which the bakers said was “the biggest campaign we’ve ever had”.

De Niro’s appearance follows that of Rocky legend Sylvester Stallone, who starred in an £18 million campaign for the bakers in 2015.

The Muppets and comedian Peter Kay have also appeared in commercials for the bakers.

In their annual accounts the company said the losses were due to £19.6 million of one-time only restructuring costs as well as the sales decline.

These include the closure of its Stockton Bakery due to excess capacity.

Jonathan Warburton, chairman of Warburtons, said: “The wrapped bakery market continues to be very challenging and this, coupled with increased costs and some exceptional items, impacted our results for the 2017/2018 financial year.

"Excluding the exceptional costs, the underlying business remains profitable. During the same period, we also invested significantly to ensure we are well placed for long-term growth.”



https://www.mirror.co.uk/news/uk-ne...h-more-17487741
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  #2   ^
Old Mon, Jul-08-19, 01:35
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s93uv3h s93uv3h is offline
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what do you call loaves of bread at the bottom of the sea?

[ a good start ]

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  #3   ^
Old Mon, Jul-08-19, 08:11
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Bob-a-rama Bob-a-rama is offline
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Plan: Keto (Atkins Induction)
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Default

As people get healthier, some foods win, others do not.

I'm seeing a lot of articles, probably sponsored by the grain and bread companies telling people keto is bad and you need carbs.

But I remember ads that used to say, '2 our of 3 doctors recommend Camel cigarettes'.

All I know is keto works for me.

Bob
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  #4   ^
Old Mon, Jul-08-19, 08:19
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GRB5111 GRB5111 is offline
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Plan: Very LC, Higher Protein
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Default

Camels and Lucky Strikes were doctor recommended, as saturated fats were eventually doctor discouraged. Now it's carbs and bread in this case. How does it feel? Failure of bakers doesn't bother me one whit. Paying "stars" to lend credibility is a total joke and an insult to free will. Desperate times require desperate measures.
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  #5   ^
Old Mon, Jul-08-19, 13:11
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bevangel bevangel is offline
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Default

I do feel a bit sorry for anyone whose business goes into the toilet because of a major shift in what potential customers want and will buy. But that is just the way a free market economy works. Some businesses manage to shift to alternative business models and survive. Other don't and eventually wind up going bankrupt (unless the gov't decides to bail them out!) Whether it is pure luck, business savvy, or exactly what that allows some businesses to survive and thrive while their fellow go under, I honestly don't know. Still, despite the pain that comes from shifting consumer tastes in a free market economy, I remain convinced that free-market still works a LOT better (and causes less pain in the long run) than markets that are controlled top down.

Actually, come to think about it, that's really the way nature works too. Conditions change and some species manage to adapt and thrive - albeit in a different form - while others die out.

On an individual basis tho, yeah, I feel sorry for those that don't make it. Not really so much for the "businesses" as entities (despite being legal entities, businesses DON'T have feelings and never will) but because businesses are owned by and staffed by real people who suffer when they lose their livelihoods.

Hopefully many people currently working in the bread industry will see the handwriting on the wall and start looking for other employment before it is too late.

The times they are a changing!
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  #6   ^
Old Tue, Jul-09-19, 07:05
Bob-a-rama's Avatar
Bob-a-rama Bob-a-rama is offline
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Plan: Keto (Atkins Induction)
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Yes, it's the people in declining industries that we feel for. Bakery employees, newspaper employees, coal minerrs, and so on.

Survival goes to the businesses that can adapt to the ever changing marketplace.

Bob
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  #7   ^
Old Tue, Jul-09-19, 07:32
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GRB5111 GRB5111 is offline
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Plan: Very LC, Higher Protein
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The image of bakers struggling to maintain a sole proprietorship business is heart wrenching, but there's this:
https://www.warburtons.co.uk/
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  #8   ^
Old Tue, Jul-09-19, 08:06
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bevangel bevangel is offline
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Plan: modified adkins (sort of)
Stats: 265/176/167 Female 68.5 inches
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Default

Okay, that's a funny commercial but more than a bit confusing. Am I supposed to be moved to want to buy Warburtons bagels in order to keep the "mafia" from taking them over? Or BECAUSE the mob is taking them over? Or exactly what?:

Maybe someone more in tune with European commercials can explain it.
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  #9   ^
Old Tue, Jul-09-19, 10:02
GRB5111's Avatar
GRB5111 GRB5111 is offline
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Plan: Very LC, Higher Protein
Stats: 227/186/185 Male 6' 0"
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Progress: 98%
Location: Herndon, VA
Default

Yes, hardly sole proprietorships of struggling independent bakery owners trying to make a living. Now those are the people for whom I have empathy. Big bakery able to hire celebrities to endorse their products to stimulate the "follow me" crowd is quite another thing. Sheep to the slaughter to protect the bottom line, health isn't even a question. It's not just Warburtons, as there are some big boys like Coca Cola, Pepsi, Cadbury, and others who deftly use NLP to send their message. Hey, if De Niro likes bagels, they must be good . . . .
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