Upbeat tones at IFE

By: Dean Best - 17 March 2009 16:16

It's day three of the IFE trade exhibition in London's Docklands – and each day has appeared progressively busier for visitors and exhibitors.

Today (17 March), Peter Marks, the chief executive of UK retailer The Co-operative Group, gave the VIP address at the show – and promptly insisted a supermarket ombudsman will not protect suppliers from retailers.

Marks, who also claimed the Co-op, would deliver a “significant increase” in profits as it navigates the downturn in the UK said the company's recent acquisition of fellow UK retailer Somerfield had proved “the icing on the cake”.

Throughout the three days, similarly optimistic tones have come from Fairtrade chocolate maker Divine Chocolate, while Brazilian meat giant Sadia is lining up an ambitious move to launch branded products into a competitive UK retail poultry sector.

It's been a hectic three days so far and there are signs that, despite the downturn, parts of the food industry remain defiant and positively bullish about their prospects.

Comments on this blog post

Having spent a couple of days at the IFE I would confirm the generally positive sentiments expressed in your article. While clearly some companies are suffering from the challenges of managing cash flow in a a hostile borrowing environment, business fundamentals remain sound. The UK food industry is used to the ups and downs of cost increases, pricing pressure and the like and is therefore well prepared for the current climate(balance sheets to one side). In our daily mergers and acquisitions work, we come across many examples of companies still growing and thriving despite today's environment. At Oghma Partners, we expect to see these companies leverage their success over the coming months taking advantage of the opportunity that the current conditions throw up.

Mark Lynch, United Kingdom