Business Model & Strategy
OUR PURPOSE IS TO DELIVER GREAT TASTING FOOD FOR OUR CUSTOMERS AND CONSUMERS AND, IN SO DOING, CREATE LONG-TERM VALUE FOR ALL OUR STAKEHOLDERS
We will do this by focusing primarily on the growing quality end of the markets in which we operate and by establishing meaningful and long-lasting relationships with all our customers. This will be supported by a combination of product development and high service levels. We will continue to invest in quality facilities and the latest equipment so that we can operate as efficiently as possible and to provide a safe and secure working environment for our employees.
OUR BUSINESS MODEL
The markets in which we operate are competitive both in terms of pricing from fellow suppliers and the retail environment in general. Despite this, we have a long track record of increasing sales and profits through a combination of investing in modern efficient factories, developing a range of quality products and making value-added acquisitions.
Our operations are focused on the production and supply of premium food products. We operate primarily in the UK, with a small, but increasing proportion of sales being exported.
We produce a range of high-quality, predominantly fresh products, including fresh pork, sausages, bacon and cooked meats for sale to high-street food retailers. We supply a range of pre-sliced, pre-packaged charcuterie products for sale to these same customers, together with pre-packed sandwiches predominantly for food service outlets.
We also supply artisan pastry products into both retail and ‘food to go’ channels from our purpose-built facility in Malton, North Yorkshire.
The recent acquisition of Benson Park has added premium cooked poultry to our product portfolio and also supports our focus on the fast growing ‘food to go’ sector. In April 2016, we acquired Crown Chicken, a leading integrated poultry producer. These acquisitions represent important progress in developing a meaningful presence in the poultry sector over the longer term.
We operate from fifteen highly efficient, well-invested food production facilities across the UK. Continued investment ensures that these facilities have sufficient capacity headroom to meet our growth aspirations, that they operate as efficiently as possible and provide a safe and secure working environment for our workforce.
Supply chain security and integrity is a crucial component of our business model. Robust technical audit and traceability systems ensure that our products are responsibly and sustainably sourced from suppliers whose values are aligned to our own. We also own our own pig breeding and rearing operations which supply approximately 20 per cent of our British pig requirements. This gives us even greater supply chain transparency, security and efficiency.
The business is under the control of stable, experienced and talented operational management teams supported by a skilled workforce. We offer training and specialist support where needed to ensure that our people feel empowered, dedicated and enthusiastic with a shared vision for the long-term success and development of our business.
OUR SALES GROWTH STRATEGY
DRIVING THE CORE
Consolidation of existing market positions
Around three quarters of our revenues come from our retail customers. In recent years, provenance and food quality have become increasingly important for the retail sector. For many years, we have invested heavily in our production facilities to ensure that they are some of the most efficient and safe in the UK food manufacturing sector, and this, together with increased focus on our supply chains, underpins our core category growth and supports the development of sustainable long-term contracts with our key retail customers.
EXPANDING OUR OFFER
Developing new products and channels in our core UK markets
We continue to differentiate through our focus on developing innovative premium products. 6.1 per cent of revenues in the current year are attributable to new product launches. The hugely successful Agriculture and Horticulture Development Board (AHDB) pulled pork campaigns in the last year also highlight the way in which innovative and focused marketing can deliver positive results.
The recent acquisition of Benson Park has further diversified our product and customer range and also supported the development of our growth in the ‘food to go’ sector. Benson Park has made an important contribution to our growth since acquisition, and we see further significant growth opportunities following the capital expenditure which doubled the site’s capacity during the current year. Building on this, the Crown Chicken acquisition in April 2016 has further diversified our offering as well as securing our chicken supply chain.
SEEKING NEW OPPORTUNITIES
Growing our international operations and customer base
We continue to develop our export business to maximise the value of our products. The Far East is a particularly important market for us. We have a dedicated business development manager based in Shanghai, and over the last year volumes shipped to the Far East have increased by 32 per cent. Overall, around 27 per cent of the tonnage produced by the Group’s two primary processing facilities is exported.
The majority of ribs processed are exported to the US, where prices for this cut of meat are highest. We have US Department of Agriculture (USDA) accreditation to ship ribs from our Hull primary processing facility and are investing heavily in our Norfolk facility with a view to achieving the same accreditation for that site.
We will continue to expand our international footprint by developing our products and offering a broader product range.
SUPPLY CHAIN MODEL
Sustainability and traceability are at the core of what we do
The recent acquisition of Crown Chicken provides the Group with a fully integrated farm to fork supply chain solution for its developing poultry business.