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Gü sold fewer puddings after supermarkets bring in new rules on high sugar items

July 2, 2024
in News
Gü sold fewer puddings after supermarkets bring in new rules on high sugar items
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Tuesday 02 July 2024 2:09 pm

Gü, which was previously owned by Noble Foods, was snapped up by private equity firm Exponent in May 2021 for a reported £150m.

Gü sold fewer puddings after raising its prices as UK supermarkets brought in new rules about where high fat and sugar products could be placed in stores.

The Hertfordshire-headquartered company said that the cost-of-living crisis plus a new ban on putting high fat, sugar and salt products on gondola ends in UK supermarkets had impacted the number of products it sold in the 12 months ended September 29, 2023.

But despite selling fewer products, price increases across its range meant Gü was able to nudge its turnover up, hitting just over £66.5m during the year, up from £66.1m in the 12 months before, according to results that have just been filed with Companies House.

However due to “external headwinds” the company saw its pre-tax profit slashed in half to £5m, down from £10.4m the year before.

In a statement on Companies House, Gü said: “2023 saw several external headwinds with soaring cost inflation, a ban on high fat, sugar, and salt products on gondola ends in UK supermarkets and a cost-of-living crisis affecting consumption in premium chilled desserts in the UK and France.

“Despite this we saw modest sales growth in the year with successful performance of new products and growth in the UK.

“Towards the end of the year we have entered into new markets including the USA, Ireland and Spain. The investment to the manufacturing site was made to meet new market demands.

“We implemented pricing across all markets which recovered the cost base inflation seen, and protected margins. This did however have an impact on volumes which were down year on year.

“Overall sales were slightly down in France with price increases dampening rate of sale. 2023 saw strong customer service at 98 per cent.”

Gü, which was previously owned by Noble Foods, was snapped up by private equity firm Exponent in May 2021 for a reported £150m.

The dessert maker saw strong sales during the pandemic as demand for at-home comfort food sky rocketed.

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Copyright for syndicated content belongs to the linked Source : CityAM – https://www.cityam.com/gu-puddings-sell-fewer-products/

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