You might not know it, but without Cranswick your traditional Sunday morning breakfast might be significantly different to that which you are used to today.
In the 1970s the business was formed when a group of Yorkshire farmers began to produce high quality pig feed in consortium. In the 1980s they then moved into food production; the idea being that as a group they would be able to supply butcher quality sausages to the mass market. That ultimately became what we now know as Sainsbury’s ‘Taste the Difference’ and Tesco’s ‘Finest’ ranges.
Today, Sainsbury’s and Tesco still make up more than 50% of Cranswick’s sales.
But even a business that creates its own market faces challenges. The latest set of results highlighted three in particular; gross margin pressure from a tougher commercial landscape, operating margin pressure as a result of Brexit-induced labour concerns and higher capital expenditure costs driven by increased investment in their new poultry facility.
The question today is whether Cranswick is a company facing new and significant challenges in a market they have dominated for so long, or whether this is a high quality company going through a temporarily tough time.