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August 7, 2019

F Smales & Son mulls future of chilled seafood division

F Smales & Son, a UK-based fish merchant and processor, said it may be forced to close its chilled seafood division after the loss of a "major" contract. 

By Dean Best

F Smales & Son, a UK-based fish merchant and processor, said it may be forced to close its chilled seafood division after the loss of a “major” contract with an unnamed customer.

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  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
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Should the plans go ahead, the family-owned company said 95 jobs will be lost at its facility in Witty Street located in the city of Hull in north-east England as the site also faces closure from the contract loss. Smales also put the development down to “vertical integration” in the seafood industry.

However, the company is re-evaluating its business strategy for its trading division, which supplies frozen fish and catering products – from pies to chicken nuggets and sausages – to fish and chip shops, wholesalers, foodservice outlets and “national accounts”. Smales’ chilled division generates 20% of its annual turnover, according to the firm.

just-food has contacted the company to try and ascertain where the business has been lost, although Smales noted in a statement announcing the closure that “there will be no further comments at this time”. 

The trading division turns over some GBP70m (US$85m) in a sector that Smales said is still growing and therefore plans to “accelerate” opportunities in that area.  

It noted in the statement: “The company is in a strong and secure financial position moving forward. As such, F Smales & Son (Fish Merchants) Ltd. are re-evaluating business the strategy to potentially switch focus solely on the trading division.” 

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Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

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