Blog: Food firms vulnerable to financial problems

Catherine Sleep | 21 September 2004

Companies trading in the food and drink manufacturing sector are one of the most likely industry types to be unable to meet financial obligations, a UK credit reference agency claims. ICC Credit trawled through its database of more than four million limited and unincorporated firms to identify the types of business most likely to default on payment, and food and drink companies were found to be way up there.

The company said that one in eight firms has experienced severe financial difficulty. Unsurprisingly, the coal mining sector was even worse hit, with 25.7% of firms unlikely to be able to pay.

Does this surprise us? We’re traditionally told that food firms are fairly recession-proof (because even when times are hard, you still gotta eat) and offer a safe haven for investors, but perhaps these days that philosophy applies more to retailers than to manufacturers.

ICC's findings


BLOG

Ethical Trading Initiative's suspension of Fyffes rumbles on

Fyffes' suspension from The Ethical Trading Initiative, sparked over disquiet about conditions for the produce giant's workers in Honduras, continues after the UK-based organisation said the fruit and...

BLOG

Tesco-Booker deal gets green light as UK grocery landscape shifts

Here in the UK, we've had two significant pieces of M&A news in the grocery retail channel in the last 24 hours....

BLOG

Getting the basics right online

Failed launches cost grocery brands operating in the UK over GBP30m per year - but ironing out mistakes made in listing new products online could help improve marketeers' chances of success, according...

just-food homepage



Forgot your password?