Blog: Food firms vulnerable to financial problems

Catherine Sleep | 21 September 2004

Companies trading in the food and drink manufacturing sector are one of the most likely industry types to be unable to meet financial obligations, a UK credit reference agency claims. ICC Credit trawled through its database of more than four million limited and unincorporated firms to identify the types of business most likely to default on payment, and food and drink companies were found to be way up there.

The company said that one in eight firms has experienced severe financial difficulty. Unsurprisingly, the coal mining sector was even worse hit, with 25.7% of firms unlikely to be able to pay.

Does this surprise us? We’re traditionally told that food firms are fairly recession-proof (because even when times are hard, you still gotta eat) and offer a safe haven for investors, but perhaps these days that philosophy applies more to retailers than to manufacturers.

ICC's findings


BLOG

Nestle announces changes to senior team with new CEO on horizon

Nestle, set to welcome a new CEO on 1 January, has announced more changes to the make-up of its senior management team....

BLOG

Blue Bell Creameries involved in another safety scare

Blue Bell Creameries is trying to win back the trust of consumers after a fatal listeriosis outbreak last year was linked to its products - but in recent days the US ice cream maker has issued another...

BLOG

Hain Celestial's Orchard House deal waved through

The UK's competition regulator has given the all-clear to Hain Celestial's bid to buy UK food and beverage group Orchard House Foods, nine months after the US group announced the deal....

BLOG

Hershey's unusual move to share sales data

Hershey made an unusual announcement today (20 September), sharing its own sales data for the last four weeks to assuage any possible investor concern over figures released by Nielsen....

just-food homepage



Forgot your password?