Announcing a ‘sound overal trading result’ for the 24 weeks ended 28 February 2015, Associated British Foods (ABF) noted a disappointing period for George Weston Foods in Australia.
The combination of competitive price pressure and retailers featuring bread in their drive for lower prices with heavy price promotion activity has reduced bread margins.
In response the business has implemented a cost reduction programme across all bakery sites and is focused on delivering productivity improvements. However, for George Weston, the news was not all bad as the company’s The One and Abbotts’ Village Bakery brands increased market share on the back of increased marketing and advertising support.