Realities of retail
It is unfortunately an understood fact of retail life that it is not just the amount of products sold that determine the figure when the year end report is finalised. Despite Thorntons actually selling 26% more chocolate in supermarkets and other outlets, the high costs of its own store operations and the financial aspects of closing down those stores have unfortunately seen the company end up with a significant loss in the year to June 2011. It is a shame for a company that is clearly still valued by its customers and I hope that the new strategy will be successful.
It is also a fact for many of the companies that showcased their exceptional products this week at the Speciality & Fine Foods Fair in London. I walked out of there having tasted some fantastic products but quality is unfortunately not the only aspect of success. The costs involved with trade shows, investment in facilities, appropriate packaging, distribution costs etc all play a part.
I don’t have statistics on how many small businesses in the sweets and snack sectors that fail or succeed but it is certainly encouraging that Innova Market Research has found that confectionery was the leading food and drinks sector in terms of global launch activity in the first half of 2011. May you all persevere and build towards long-term future success.
Best regards,
Katrine Kjoeller, Editor
Sweets & Snacks Europe
