Scottish soup manufacturer Baxters Food Group has confirmed that a “small number” of jobs are set to be cut as the company struggles with high inflation.

The Fochabers-based business stated that “unprecedented inflationary pressures” have impacted “business performance”.

Baxters did not confirm the number of redundancies but noted that it would be fewer than ten.

A spokesperson said: “As a result we have made the difficult but necessary decision to make a small number of reductions within our workforce.”

Last year, Baxters entered debt talks with its lenders as part of a refinancing initiative, describing the discussions as routine.

At the time, the company said: “We regularly review our advisers and suppliers across all areas of the business including our financial partners and advisers, in this case in relation to our planned routine refinancing.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

Baxters is a family business that can trace its roots back more than 150 years. Its products – including canned soups, canned meat products, pickles and chutneys – are sold by major supermarket chains in the UK, including Tesco and Sainsbury’s.

It also has an operation in Australia and one in the US where it owns Wornick Foods, a supplier to the US military, as well as shelf-stable foods manufacturer Truitt Bros.

Baxters reported sales of £338.9m ($426.4m) for the 12 months to 2 April 2022, up from £332.2m a year earlier. It reported a pre-tax profit of £5.1m, down from £23.2m. Profit for the period dropped to £2.1m from £16.5m.

During that year, the last financial year for which Baxters filed accounts with the UK’s Companies House, some 63% of the group’s revenues were generated in the US.

The company entered chilled foods in 2020 with the acquisition of fellow UK manufacturer Orexis Fresh Foods.