Hull food manufacturer Aunt Bessie’s has warned the rise of discount brands and poor weather could hit the business.
The firm, which produces 900 million Yorkshire puddings from its factory in Freightliner Road every year, hit sales of £77.8m in the last eight months of 2018.
Pre-tax profits reached just under £5.7m, but despite the results, Aunt Bessie’s warned 2019 could prove to be a “challenging year” for the business.
Directors said: “The challenging conditions of the grocery market, driven by the growth of discounters and private label mean that the outlook for 2019 will remain challenging.
“The variability of weather in recent years has impacted the yield and quality of many crops and has contributed to raw material cost inflation.
“Similarly, we source a variety of our raw materials from overseas and as such we are exposed to exchange rate volatility.”
Aunt Bessie’s history in Hull dates back to 1974, when its then-owner – William Jackson Food Group – was asked to supply frozen Yorkshire puddings to Butlins Holiday Park.
In 1995, the company started selling puddings to supermarket chains under the label Aunt Bessie’s.
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Aunt Bessie’s hit the headlines last year when William Jackson sold the business to Birdseye owner Nomad Foods in a deal worth over £200m.
In the year leading up to April 28, 2018, Aunt Bessie’s sales reached £110.7m, with pre-tax profits of almost £13m.
The business followed that performance up with a strong end to 2018, but warned 2019 could prove more difficult.
Directors said: “Brexit has created political and economic uncertainty in the United Kingdom.
“A deterioration in economic conditions could result in increased unemployment rates, a decline in the strength of national and local economies, and other results that negatively impact household incomes.
“The board continues to believe that opportunities for growth, innovation and development outweigh the potential impact of the risks and uncertainties currently facing the group.”
Aunt Bessie’s employed 383 people at the end of 2018.
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At the company’s factory in Hull, a bag of Yorkshire puddings is made every 1.2 seconds.
Batter rolls into ovens which are more than 50m long, and out of the other end come perfectly formed Yorkshires.
The odd one which doesn’t quite make the cut is discarded, with all food waste becoming animal feed.
A state-of-the-art machine then sorts the puddings by weight in a fraction of a second, and drops them into bags ready to be sealed, boxed and sent off to the shops.
Aunt Bessie’s has grown to become a household name nationally. The rise of discount brands however, will pose new challenges for the brand.
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