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June 16, 2020

Soup maker TSC Foods mulls redundancies as foodservice sales collapse

A UK-based soup manufacturer has seen sales collapse due to foodservice closures during the Covid-19 pandemic and is considering making hundreds of workers redundant.

By Dean Best

TSC Foods has entered consultations with employees over 200 potential redundancies after the UK-based soup manufacturer saw foodservice sales collapse in the midst of the Covid-19 lockdown.

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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.

Located in the town of Scunthorpe, North Lincolnshire, TSC Foods supplies the out-of-home and retail sectors with chilled and frozen soups but has seen production for the former fall 75% this year, according to a statement.

TSC said it has been been working with industry partners and customers to protect employees and the business but job losses were inevitable despite the easing in lockdown rules, measures which are starting to see fast-food outlets reopen but restaurants remain closed.

Managing Director Ray Pigg said: “Long-term closures and regulatory changes, though necessary and important for public safety, have had a significant impact on the foodservice industry. 

“The new operational restrictions placed on our customers mean they require much less from us as they start to emerge from this scenario, which in turn impacts our forecast significantly. With this in mind, we have conducted a considered and in-depth review of our market position and it is clear that to protect the future of the business, we must operate from a lower cost base.” 

TSC, formerly known as The Sauce Company, was acquired in 2014 by the privately-owned UK food manufacturer, the Billington Group. TSC owns the Glorious brand, encompassing vegan, vegetarian and gluten-free soups.

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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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