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Inflation 'unprecedented' Says Britvic

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The CEO of Britivic had better start looking for a location where inflation is not going to be actively persued as a goal then.

http://www.independent.co.uk/news/business/news/inflation-unprecedented-says-britvic-2225076.html

Inflation 'unprecedented' says Britvic

By Nikhil Kumar

Friday, 25 February 2011

The chief executive of the drinks group Britvic added to the increasing concern about rising prices last night when he said that he had never before seen such big increases in the cost of raw materials in such a short period of time.

The company, whose portfolio of brands includes Robinsons and Tango, said the pace of price rises in recent weeks had been "unprecedented", so much so that has now almost doubled its estimate of input-cost inflation for the UK and Ireland to 9-11 per cent, against 5-6 per cent previously.

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The CEO of Britivic had better start looking for a location where inflation is not going to be actively persued as a goal then.

Yes but Adam Posen says its only temporary and he be 'the man' ......the Feds man !

http://www.independe...ic-2225076.html

Inflation 'unprecedented' says Britvic

By Nikhil Kumar

Friday, 25 February 2011

The chief executive of the drinks group Britvic added to the increasing concern about rising prices last night when he said that he had never before seen such big increases in the cost of raw materials in such a short period of time.

The company, whose portfolio of brands includes Robinsons and Tango, said the pace of price rises in recent weeks had been "unprecedented", so much so that has now almost doubled its estimate of input-cost inflation for the UK and Ireland to 9-11 per cent, against 5-6 per cent previously.

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The CEO of Britivic had better start looking for a location where inflation is not going to be actively persued as a goal then.

http://www.independent.co.uk/news/business/news/inflation-unprecedented-says-britvic-2225076.html

Inflation 'unprecedented' says Britvic

By Nikhil Kumar

Friday, 25 February 2011

The chief executive of the drinks group Britvic added to the increasing concern about rising prices last night when he said that he had never before seen such big increases in the cost of raw materials in such a short period of time.

The company, whose portfolio of brands includes Robinsons and Tango, said the pace of price rises in recent weeks had been "unprecedented", so much so that has now almost doubled its estimate of input-cost inflation for the UK and Ireland to 9-11 per cent, against 5-6 per cent previously.

Not inflation: it is Cost Base price Increase.

The key to real monetary inflation is wage and salary rises.

In the past we have seen Cost Base price increases caused by all sorts of extraneous events: such as copper shooting through the roof back in the late 1960s. Caused by civil wars in African copper producing states.

So for wire, aluminium was used instead. For example on cars for the heavy duty battery wires: and on power transmission with a steel core.

Classic example of Supply and Demand forcing alternative product.

One of the problems with modern post-Keynsian economies using fiat currencies and monetary systems is those supposed to be in charge not actually knowing WTF they are talking about.

Include Mystic Merve in this gaggle of clowns.

:rolleyes:

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Sorry, but the key to monetary inflation is by its very own description an expansion of the monetary supply!

'Wage and salary' rises (BTW: they are the same thing) come off the back of monetary expansion. But they come.

The key to real monetary inflation is wage and salary rises.

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Not inflation: it is Cost Base price Increase.

The key to real monetary inflation is wage and salary rises.

In the past we have seen Cost Base price increases caused by all sorts of extraneous events: such as copper shooting through the roof back in the late 1960s. Caused by civil wars in African copper producing states.

So for wire, aluminium was used instead. For example on cars for the heavy duty battery wires: and on power transmission with a steel core.

Classic example of Supply and Demand forcing alternative product.

One of the problems with modern post-Keynsian economies using fiat currencies and monetary systems is those supposed to be in charge not actually knowing WTF they are talking about.

Include Mystic Merve in this gaggle of clowns.

There are supply and demand issues but this is all being excerbated by inflation, e.g. easy cheap money being used to bid up prices via speculative activity.

In 2008 there was a big spike in the price of wheat, however it was a world record harvest that year, the reason the price went up was because GS took massive long positions in wheat futures.

Anyone who does not think similar is happening now is in dream land.

Edited by Cptkernow

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Paul Moody CEO of Britvic

2010 Basic Salary £490k Bonus £638k (130%!!) plus £22k in taxable benefits giving a total of £1,150,000

2009 he got £997,000 So a 15% increase.

http://ir.britvic.com/~/media/Files/B/Britvic-IR/Attachments/pdf/presentation/2010/reports/ar_2010_final.pdf

In 2006 he got £366,000 (319%!!!)

http://ir.britvic.com/~/media/Files/B/Britvic-IR/Attachments/pdf/presentation/2006/reports/Annual%20Report%202006.pdf

What's the mark-up on a bottle of orange juice? No wonder his prices are going to rise.

I've thought up a new word to describe what's happening with the prices we have to pay for stuff

INFLAGREEDTION

Edited by Redhat Sly

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Paul Moody CEO of Britvic

2010 Basic Salary £490k Bonus £638k (130%!!) plus £22k in taxable benefits giving a total of £1,150,000

In 2006 he got £366,000 (319%!!!)

It is pretty astonishing what's going on at the top, thanks for looking up the stats.

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It looks like the CEO of Britivic has been in the food/drinks related sector since about 1982 so he saw the inflation in the 80s/90s getting on for 20% - 25% so if he's saying he's never seen it so bad then that's for sure saying something - and it's not saying something good about inflation and the UK economy.

More like the BoE is following a policy on inflation that'll be devastating for the UK.

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from one of our suppliers today:

It is with regret that we have to announce a 10% price increase to our 7th Edition equipment catalogue. We have worked very hard to hold prices for the last two years, but over this time there has been some very large increases on steel, chipboard and plastics. With this months sharp rise in raw materials, along with the steady rise in the day to day running costs over the last two years, we are unable to absorb these increases any further.

The price increase will take effect from Monday the 28th March 2011 and the 10% increase will apply to the entire range within our 7th Edition catalogue. We will be sending out a replacement catalogue with a surcharge sticker on the front by the end of next week. If you would like more of these stickers for your own catalogues please let me know.

We were planning to launch the 8th Edition catalogue in April but with the volatility in prices at the moment we have decided to delay this to September this year. If you would like to discuss any of the effects in the email, then please contact me.

Regards

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It is pretty astonishing what's going on at the top, thanks for looking up the stats.

If you can run a bankrupt company and get paid millions then you can only expect onlookers in other boards expecting the same if not more in payouts. Also they know from their business what is happening in regards inflation and want no part of the bankrupt of england's game in that respect.

The bankrupt of england have taken moral hazard to utterly new extremes and have knackered any level of reposnsibility by anybody that can shove their hand in the till first - that includes themselves with the trading of their pension portfolio and monetary policy htat just so happens to benefit that portfolio immensely.

It will have economy if not country destroying consequences.

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It is pretty astonishing what's going on at the top, thanks for looking up the stats.

Why? It's only upset you. :lol:

When I see someone post a thread on here about a company issuing a profit warning I just google their name and annual report.

Here's a few in the document:

Total Remuneration increases listed in their company annual reports for 2009 and 2010

Next

S A Wolfson £831k to £1.7m (+109%)

C E Angelides £585k to £980k (+67%)

D W Keens £560k to £936k (+67%)

A J Varley £423k to £789k (+86%)

http://www.nextplc.co.uk/nextplc/financialinfo/reportsresults/2009/jan10/jan10-c.pdf

HMV

Simon Fox £579k to £874k (+51%)

Neil Bright £349k to £559k (+60%)

Gerry Johnson £312k to £494k (+58%)

Robert Swannell £50k to £200k (+300%)

http://2010hmvgroup.ry.com/Accounts_and_Downloads/PDFs/directors_rem_report.pdf

Kesa

Thierry Falque-Pierrotin 2009 to 2010

£521,838 to £2,105,430

http://kesaelectricals.com/results-and-reports#117|tab=136

Halfords 2009 to 2010

David Wild £799,000 to £1,134,000 (+42%)

Nick Wharton £384,000 to £555,000 (+44%)

Paul McClenaghan £383,000 to £540,000 (+41%)

http://www.investis.com/hal/ir/fininfo/reports/rep2010/ar2010/ar2010.pdf

JJB Sports Total Director Rumeneration

2010 £2,593,000

2009 £1,291,000

"The Committee determined that the targets had all been met and therefore the Executive Directors were each

entitled to a bonus of 100% of annual basic salary."

http://www.jjbcorporate.co.uk/pdf/reports/2010%20-%20Annual%20Report.pdf

Sainsburys 2009 to 2010

Justin King £2,048,000 to £3,348,000 (+63%)

Mike Coupe £937,000 to £1,407,000 (+50%)

Darren Shapland £967,000 to £1,542,000 (59%)

http://www.j-sainsbury.co.uk/ar10/downloads/pdf/Sainsburys_AR10_Full.pdf

Morrisons

Increase the maximum annual bonus potential for Executive Directors from 100% of base

salary to 200% of base salary for 2010/11.

Increase the level of Long Term Incentive Plan (LTIP) awards for Executive Directors

(with the exception of the incoming Chief Executive) for 2010/11 from 200% of salary to

240% of salary. The incoming Chief Executive will receive an LTIP award equal to 275% of salary.

These award levels are within the individual limit of 300% of salary contained in the LTIP rules.

The Committee, therefore, very quickly took certain steps to this end and agreed to an additional LTIP award of

100% of salary to these two individuals, in addition to the 200% of salary award already received

in 2009/10

http://www.morrisons.co.uk/Global/Images/Corporate/Annual%20Report/Morrisons_AnRep10.pdf

Aviva

Andrew Moss, Group Chief Executive

Basic Salary £925,000

ABP £1,029,294 (111.3% of basic salary)

OATTV Plan £501,443

LTIP – Face Value of grant £1,618,750

ACAP £462,500

http://www.aviva.com/library/reports/2009ar/downloads/directors_remuneration_report.pdf

Tesco

Terry Leahy £9.1m to £15.6m

http://www.thisismoney.co.uk/news/article.html?in_article_id=517324&in_page_id=2

annual bonus payouts ranged from 60% to 90% of maximum.

The maximum potential bonus was 250% of salary for the Group

CEO , 300% of salary for the US CEO and 200% of salary for other

Executive Directors;

• long-term incentive payout was 90% of a potential maximum of

100% of salary;

• no material changes to policy, remuneration mix or scale of incentives;

• deferred awards, already earned from prior years, representing

4.6 million shares became available to Directors;

http://www.tescoplc.com/annualreport09/downloads/

Reckitt Benckiser

Pass the Nurofen please. The scale of Bart Becht's pay packet at Reckitt Benckiser is so shocking it may be necessary to take a lie-down and a couple of his company's bestselling painkillers. Ninety million pounds. For one man, in one year, from a company he does not own. That's £1.7m a week. More than quarter of a million pounds every day. Nearly double the previous FTSE 100 pay record. We've got used to Becht topping the pay charts every year, with huge sums like £36m and £22m. But £90m?

Last week CBI boss Richard Lambert warned that boardroom pay was getting so out of kilter with average wages that bosses risked being regarded as "aliens". Well Bart Becht is the Emperor Dalek.

Chief executive pay, said Lambert, had risen from 47 times average wages to 81 times in the last 10 years. Becht, however, received the same pay as 3,000 of Reckitt Benckiser's staff last year – or 10% of the group's workforce. His rewards have spiralled tenfold in a decade and he has now banked more than £200m from this business since 2005.

Becht's pay outstrips even the banker brigade, who have been so castigated in recent years. At least bankers do something that is hard to get your head around. Selling Cillit Bang is not rocket science. Reckitt Benckiser, in Becht's own words, sells "very stupid products".

http://www.guardian.co.uk/business/2010/apr/07/viewpoint-bart-becht

Don't forget we are all in this together.

It's just price inflation not INFLAGREEDTION!!

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when he said that he had never before seen such big increases in the cost of raw materials in such a short period of time.

Is this the deflation everyone is worried about?

Someone should tell Paul Moody that he's got his chart upside down. Everything is really getting cheaper.

Not inflation: it is Cost Base price Increase.

Well I'm glad we got that sorted out then.

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All those companies haven't issue profit warnings some have just been mentioned for other reasons.

Phew. For a moment I thought those salaries might be excessive...

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If you can run a bankrupt company and get paid millions then you can only expect onlookers in other boards expecting the same if not more in payouts. Also they know from their business what is happening in regards inflation and want no part of the bankrupt of england's game in that respect.

The bankrupt of england have taken moral hazard to utterly new extremes and have knackered any level of reposnsibility by anybody that can shove their hand in the till first - that includes themselves with the trading of their pension portfolio and monetary policy htat just so happens to benefit that portfolio immensely.

It will have economy if not country destroying consequences.

Just think if all the plebs switched to trading with shells/A.N.other commodity again banning electron money - they would all be worthless overnight.

Cockard (1650s) as a noun, "idiot, fool" (one to disrupt the english lesson)

Edited by erranta

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Not inflation: it is Cost Base price Increase.

The key to real monetary inflation is wage and salary rises.

In the past we have seen Cost Base price increases caused by all sorts of extraneous events: such as copper shooting through the roof back in the late 1960s. Caused by civil wars in African copper producing states.

So for wire, aluminium was used instead. For example on cars for the heavy duty battery wires: and on power transmission with a steel core.

Classic example of Supply and Demand forcing alternative product.

One of the problems with modern post-Keynsian economies using fiat currencies and monetary systems is those supposed to be in charge not actually knowing WTF they are talking about.

Include Mystic Merve in this gaggle of clowns.

:rolleyes:

And the key to writing this sort of drivel is healthy amounts of crack cocaine?

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Why? It's only upset you. :lol:

Reckitt Benckiser

Pass the Nurofen please. The scale of Bart Becht's pay packet at Reckitt Benckiser is so shocking it may be necessary to take a lie-down and a couple of his company's bestselling painkillers. Ninety million pounds.

I'd love to follow Bart Becht around for a day to see what he actually does that's worth a quarter of a million quid.

Also Nurofen is a total con, the active ingredient is ibuprofen which was invented in the 1960s and has been off patent for donkey's years. That's why you can buy the generic version for 28p for 16 tablets in supermarkets. When people pay £3.50 for 16 tablets of Nurofen, they are paying £3 for clever marketing.

From Wikipedia:

In 2010 Nurofen received a Shonky Award from CHOICE, the Australian independent consumer watchdog. The award was given for taking painkillers with the same ingredients and marketing them for specific parts of the body at varying prices. Significantly, the fast-acting painkillers labeled for specific pain types were priced higher that the general variety (in some cases almost double the price), while they all contain the same ingredients and work in the same way. The Shonky Awards are designed to expose companies with dubious marketing practices.
Edited by Dorkins

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Good Post and shocking reading.

We are being shafted left right and centre but yet people are still living in fantasy land (watching drivel on TV and dreaming that they cr@p 2-up-2-down hasn't lost anything in value)

As I said on a post yesterday, my bro went for a job interview for a 6 month contract with RBS - IT project management. The rate was @ 800 per day. And we own that crock of sh1t. I'd prefer to cut out the middle man and just give my hard earned cash straight to my brother!

Why? It's only upset you. :lol:

When I see someone post a thread on here about a company issuing a profit warning I just google their name and annual report.

Here's a few in the document:

Total Remuneration increases listed in their company annual reports for 2009 and 2010

Next

S A Wolfson £831k to £1.7m (+109%)

C E Angelides £585k to £980k (+67%)

D W Keens £560k to £936k (+67%)

A J Varley £423k to £789k (+86%)

http://www.nextplc.co.uk/nextplc/financialinfo/reportsresults/2009/jan10/jan10-c.pdf

HMV

Simon Fox £579k to £874k (+51%)

Neil Bright £349k to £559k (+60%)

Gerry Johnson £312k to £494k (+58%)

Robert Swannell £50k to £200k (+300%)

http://2010hmvgroup.ry.com/Accounts_and_Downloads/PDFs/directors_rem_report.pdf

Kesa

Thierry Falque-Pierrotin 2009 to 2010

£521,838 to £2,105,430

http://kesaelectricals.com/results-and-reports#117|tab=136

Halfords 2009 to 2010

David Wild £799,000 to £1,134,000 (+42%)

Nick Wharton £384,000 to £555,000 (+44%)

Paul McClenaghan £383,000 to £540,000 (+41%)

http://www.investis.com/hal/ir/fininfo/reports/rep2010/ar2010/ar2010.pdf

JJB Sports Total Director Rumeneration

2010 £2,593,000

2009 £1,291,000

"The Committee determined that the targets had all been met and therefore the Executive Directors were each

entitled to a bonus of 100% of annual basic salary."

http://www.jjbcorporate.co.uk/pdf/reports/2010%20-%20Annual%20Report.pdf

Sainsburys 2009 to 2010

Justin King £2,048,000 to £3,348,000 (+63%)

Mike Coupe £937,000 to £1,407,000 (+50%)

Darren Shapland £967,000 to £1,542,000 (59%)

http://www.j-sainsbury.co.uk/ar10/downloads/pdf/Sainsburys_AR10_Full.pdf

Morrisons

Increase the maximum annual bonus potential for Executive Directors from 100% of base

salary to 200% of base salary for 2010/11.

Increase the level of Long Term Incentive Plan (LTIP) awards for Executive Directors

(with the exception of the incoming Chief Executive) for 2010/11 from 200% of salary to

240% of salary. The incoming Chief Executive will receive an LTIP award equal to 275% of salary.

These award levels are within the individual limit of 300% of salary contained in the LTIP rules.

The Committee, therefore, very quickly took certain steps to this end and agreed to an additional LTIP award of

100% of salary to these two individuals, in addition to the 200% of salary award already received

in 2009/10

http://www.morrisons.co.uk/Global/Images/Corporate/Annual%20Report/Morrisons_AnRep10.pdf

Aviva

Andrew Moss, Group Chief Executive

Basic Salary £925,000

ABP £1,029,294 (111.3% of basic salary)

OATTV Plan £501,443

LTIP – Face Value of grant £1,618,750

ACAP £462,500

http://www.aviva.com/library/reports/2009ar/downloads/directors_remuneration_report.pdf

Tesco

Terry Leahy £9.1m to £15.6m

http://www.thisismoney.co.uk/news/article.html?in_article_id=517324&in_page_id=2

annual bonus payouts ranged from 60% to 90% of maximum.

The maximum potential bonus was 250% of salary for the Group

CEO , 300% of salary for the US CEO and 200% of salary for other

Executive Directors;

• long-term incentive payout was 90% of a potential maximum of

100% of salary;

• no material changes to policy, remuneration mix or scale of incentives;

• deferred awards, already earned from prior years, representing

4.6 million shares became available to Directors;

http://www.tescoplc.com/annualreport09/downloads/

Reckitt Benckiser

Pass the Nurofen please. The scale of Bart Becht's pay packet at Reckitt Benckiser is so shocking it may be necessary to take a lie-down and a couple of his company's bestselling painkillers. Ninety million pounds. For one man, in one year, from a company he does not own. That's £1.7m a week. More than quarter of a million pounds every day. Nearly double the previous FTSE 100 pay record. We've got used to Becht topping the pay charts every year, with huge sums like £36m and £22m. But £90m?

Last week CBI boss Richard Lambert warned that boardroom pay was getting so out of kilter with average wages that bosses risked being regarded as "aliens". Well Bart Becht is the Emperor Dalek.

Chief executive pay, said Lambert, had risen from 47 times average wages to 81 times in the last 10 years. Becht, however, received the same pay as 3,000 of Reckitt Benckiser's staff last year – or 10% of the group's workforce. His rewards have spiralled tenfold in a decade and he has now banked more than £200m from this business since 2005.

Becht's pay outstrips even the banker brigade, who have been so castigated in recent years. At least bankers do something that is hard to get your head around. Selling Cillit Bang is not rocket science. Reckitt Benckiser, in Becht's own words, sells "very stupid products".

http://www.guardian.co.uk/business/2010/apr/07/viewpoint-bart-becht

Don't forget we are all in this together.

It's just price inflation not INFLAGREEDTION!!

Edited by MinceBalls

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In the past we have seen Cost Base price increases caused by all sorts of extraneous events: such as copper shooting through the roof back in the late 1960s. Caused by civil wars in African copper producing states.

So for wire, aluminium was used instead. For example on cars for the heavy duty battery wires: and on power transmission with a steel core.

Classic example of Supply and Demand forcing alternative product.

can you say "corona discharge"?

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If he's seeing unprecedented inflation in raw materials (he said for example a 20% increase in one month in PET) he's likely concerned about possible carnage in his sector caused by Mervyn King's Nero inflationary stance as in stagflation more and more people will be really hunting hard for real value and that currently isn't with the UK mainstream, far from it, it's more likely to be with Lidl and suchlike. So far as Britvic's concerned there are plenty of cheaper brands compared to the Britvic brands.

Edited by billybong

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If he's seeing unprecedented inflation in raw materials (he said for example a 20% increase in one month in PET) he's likely concerned about possible carnage in his sector caused by Mervyn King's Nero inflationary stance as in stagflation more and more people will be really hunting hard for real value and that currently isn't with the UK mainstream, far from it, it's more likely to be with Lidl and suchlike. So far as Britvic's concerned there are plenty of cheaper brands compared to the Britvic brands.

Who is bidding against him and where are they getting the money from?

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  • 284 Brexit, House prices and Summer 2020

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