Real Good Food Company struck by slump in sugar prices in EU
INGREDIENTS supplier The Real Good Food Company said trading had been mixed in the third quarter of the year as strong earnings across three of its businesses was offset by a “dramatic” fall in sugar prices in the European Union.
Executive chairman Pieter Totte said market conditions had been challenging and that its specialist sugar business Napier Brown as well as Garrett Ingredients have been hit by volatility in the sugar market.
“We have made good progress in addressing this with a number of new supply sources secured in the past three months and we see sugar margins being fully restored during the course of 2014,” he said.
The group said Renshaw, which supplies ingredients such as marzipan to the baking sector, expects to post a “significant increase” in full-year earnings after ramping up investment in marketing.
Totte said: “The investments which we have made in increased sales and marketing resources were designed to transform our businesses from being manufacturing-led to market-led and underpin our growth strategy. It is pleasing to see that this strategy is now beginning to bear fruit.”
Meanwhile the group also announced that it has hired the former boss of British Sugar Gino De Jaegher as its chief operating officer with immediate effect.