Patties Foods losing their share of supermarket frozen foods pie
Competition from private label discounting has eaten into Patties Foods’ share of the frozen food aisle market and caused its half-yearly profit to dip 16.5 per cent. The latest financial results for the half-yearly period ending in December 2012 were released to the ASX on 25 February 2013.
The company, which owns a number of Australia’s icon brands including Herbert Adams and Four’N Twenty, has seen pressure increase on its frozen fruit products and on Nanna’s Fruit Pies but did still see an increase in revenue of 5.1 per cent.
Patties Foods has also faced equipment issues. “The commissioning of the new robotic packing equipment has been below expectations and has caused higher conversion costs and supply disruptions,” said managing director Greg Bourke.
In the face of increased pressure in their supermarket ranges, the company plans to focus on supporting and enhancing its brands as well as improving supply chain processes, including better waste management and the completion of the robotic packing equipment before the end of the 2013 calendar year.