900 More Jobs Go,hovis,vion Exits As Well

[The Masked Tulip]

Hovis's price is now too expensive.

Every supermarket makes its own bread which is often considerably less than any of the Hovis brands.

In addition to that the Hovis bread usually has sat on the supermarket shelf for X days whereas the supermarket's own bakeries are churning out their bread by the hour.

I also think taste has changed whereas the Hovis taste has more or less stayed the same. But I suspect price is the main factor.

[OnlyMe]

what makes you think that?....is it because the competition dont have the same costs?

margin can be destroyed by FINANCIALISATION where the lender takes and give nothing in return and still expects his fee, regardless of the risks he took.

That as well, but you can also destroy demand itself.

[RufflesTheGuineaPig]

Everyone can make a loaf of bread in their kitchen. There's really little need for a factory

Assuming the persons time has no value.

[Guest eight]

+1

Everyone can make a loaf of bread in their kitchen. There's really little need for a factory

I've actually worked in a small bakery before. Energy is by far the biggest cost - the ovens tend to be electric. The economies of scale are considerable.

[robmatic]

Assuming the persons time has no value.

Takes me a couple of minutes to fill our breadmaker.

[robmatic]

I've actually worked in a small bakery before. Energy is by far the biggest cost - the ovens tend to be electric. The economies of scale are considerable.

That might be the case but the centralised distribution network for a product with a limited shelf life is completely unnecessary.

[OnlyMe]

I suspect the likes of bread and milk are largely loss leaders in supermarkets to get punters through the door. Thus any economy of scale can get somewhat distorted in apparent pricing.

Bit of a problem for the supermarkets when the public start to turn up and only buy such products, whilst going to discounters like lidl and aldi for the rest.

[@contradevian]

I suspect the likes of bread and milk are largely loss leaders in supermarkets to get punters through the door. Thus any economy of scale can get somewhat distorted in apparent pricing.

Bit of a problem for the supermarkets when the public start to turn up and only buy such products, whilst going to discounters like lidl and aldi for the rest.

Bread and milk are already cheaper in Lidl, as is the booze (another loss leader). I only tend to venture into Sainsburys for luxury items, spices etc which Lidl don't do.

What the big supermarkets try to do is lock you into a large purchase to get extra points (£40 or more) in an attempt to lock out you buying from a competitor (which works if you have a car I suppose).

Edited November 20, 2012 by Secure Tenant

[aa3]

Hovis's price is now too expensive.

Every supermarket makes its own bread which is often considerably less than any of the Hovis brands.

In addition to that the Hovis bread usually has sat on the supermarket shelf for X days whereas the supermarket's own bakeries are churning out their bread by the hour.

I also think taste has changed whereas the Hovis taste has more or less stayed the same. But I suspect price is the main factor.

Have a feeling your explanation is the reason for this company's problems.

I rarely by bread as I can gain weight too easily on high carbs, but I did yesterday, and bought freshly baked bread at the grocer. It seems like the shelf bread is somehow more expensive than the freshly baked bread.

[Austin Allegro]

Takes me a couple of minutes to fill our breadmaker.

Making a loaf without a machine doesn't take much longer - 5-10 minutes to mix and knead, 2 hours to rise and 30 mins-1 hour to cook. Dough keeps for a week or so in the fridge.

[Cosmic Apple]

The girlfriend likes that Best of Both stuff... £1.49 in Tescos, 99p in Lidl and sometimes 30% off that if its near its sell by which is fine if you freeze it.

Maybe this is more a case of the big boys pushing the suppliers and taking more for themselves? Or Lidl under paying/loss leading.

Interesting that the bread makers come up so often on here, any hardware/mix recommendations?

[winkie]

The girlfriend likes that Best of Both stuff... £1.49 in Tescos, 99p in Lidl and sometimes 30% off that if its near its sell by which is fine if you freeze it.

Maybe this is more a case of the big boys pushing the suppliers and taking more for themselves? Or Lidl under paying/loss leading.

Interesting that the bread makers come up so often on here, any hardware/mix recommendations?

This recipe is very good.

[RufflesTheGuineaPig]

Takes me a couple of minutes to fill our breadmaker.

And how much did the breadmaker cost?

[nmarks]

The job losses keep coming,,,people cutting back due to rampant BOE inflation printing?..

http://www.bbc.co.uk/news/business-20405983

http://www.dailymail.co.uk/money/markets/article-2235369/Red-faces-CBI-Dutch-giant-Vion-exits-UK.html

13,000 jobs at risk as Vion pulls out of UK.Not a place to do business anymore?

Fuel costs through the roof,energy costs,plus consumers cutting spending on cooked meats?,

Demand is being sucked out of the economy more and more,these are the sorts of companies who go down before a hyperinflation,,food producers.

Whats the high street job losses going to be like come spring?

Of course, high property prices have nothing to do with this at all, do they?

Edited November 20, 2012 by nmarks

[The Masked Tulip]

Have a feeling your explanation is the reason for this company's problems.

I rarely by bread as I can gain weight too easily on high carbs, but I did yesterday, and bought freshly baked bread at the grocer. It seems like the shelf bread is somehow more expensive than the freshly baked bread.

Distribution costs for the likes of Hovis must be high - especially when competing with the in-house bakers.

[Ash4781]

So much for hyperinflation. They seem to be indicating they can't pass on rising costs to the consumer. Though it is only bread. Not too hard to make.

[John The Pessimist]

The retailers tend to take approx 45% margin on the retail price of fresh own brand goods. Even when discounted on the last day of life there's a 15-20% margin. For this they tend to incur waste levels at approx 8% if they're organised, higher if they're not. On top of this they impose "overriders" and "margin/marketing support" on their suppliers. All in all, it's very difficult to make money supplying the big retailers. If you try to pass on raw material inflation, they move the quality goalposts and then tell you that you're supplying them rubbish.

[robmatic]

And how much did the breadmaker cost?

£40. Didn't take long for the capital outlay to be recouped.

[RufflesTheGuineaPig]

£40. Didn't take long for the capital outlay to be recouped.

True. If you assume Lidl price, and that time, energy and ingredients are free, then what... 80 loaves?

Most people would want a loaf a week. So call it 52 loaves. So the breadmaker takes at least a year to pay for itself.

[Austin Allegro]

So much for hyperinflation. They seem to be indicating they can't pass on rising costs to the consumer. Though it is only bread. Not too hard to make.

Yes, it's the price of flour (and cooking fuel) which is more important. (Yeast can be home made at no cost).

However, we have it much easier than our ancestors. It's very easy for us to make some dough, pop it in the oven and bake a loaf. In the old days I think a lot of domestic ovens weren't hot enough, hence reliance on bakers.

[Warwick-Watcher]

Both Premier and Vion are victims of the double squeeze.

First squeeze is from their suppliers - especially the rising cost of grain. In Premier's case it's a raw material cost - in Vion's case it's

a feed cost for their raw material. Indirectly, they're both competing for the same grain and in a rising market we all know the consequences.

Also competing for grain are the biofuel manufacturers with their generous government subsidies - 2.5 million tonnes of grain estimated for 2012.

UK is on track (partly due to the cr@p harvest this year) to become a net importer of grain instead of exporting as we did in 2011. Well done Mr Osborne - another sucess in the balance of trade payments saga - not. Fecking tw@t.

Costs of biofuel production :-

http://www.iisd.org/gsi/sites/default/files/bf_awc_uk.pdf

[R K]

Assuming the persons time has no value.

Do it whilst watching X factor.

[RufflesTheGuineaPig]

Do it whilst watching X factor.

http://www.shotdeadinthehead.com/inspired-by-the-x-factor-t-shirt-mens.html

[@contradevian]

£40. Didn't take long for the capital outlay to be recouped.

Just picked up a s/h Breville bread maker (Anthony Worrall Thomson branded) in Oxfam for £15. Quite keen to give it a try and experiment with "gluten free" bread.