UK snack group Glisten has said it expects the introduction of new value products to see it through the current recession after seeing half-year profits fall.
“We believe that consumer focus on both premium and better-for-you/healthier snacks will return strongly but in the short term, there is no doubt, that the absolute priorities for many are price and value,” chief executive Paul Simmonds said.
Glisten recently introduced a new line of 99 pence snacks in order to shore up demand as UK consumers become increasingly concerned over price.
“Consumers are self-evidently changing their buying patterns weekly, prompted by an increasing range of deep-cut price-promotional offers particularly from some of the big multi-national brands. Glisten has responded swiftly to this challenge with the successful launch of price-fighting ranges offering excellent value for money and securing short term demand,” Simmonds said.
While Glisten posted a slight increase in turnover for the six months to 31 December, up from GBP33.5m (US$48.8m) to GBP35.4m, the company booked a significant drop in profits.
Profit before tax and adjusted items sank to GBP2m for the first half of last year, down from GBP3.3m for the comparable period of last year.
Nevertheless, the board said it remained “confident” that Glisten will book a “solid year”.