Greggs to Shut Four Factories

High street bakery brand Greggs has announced plans to shut four of its factories and cut 740 jobs. It plans to close manufacturing sites at North Lakes near Penrith, Cumbria, Pettigrews in Kelso, Scotland, Seaham in County Durham and Enfield, Greater London, though distribution operations would continue to run from the latter. The chain, which has headquarters in Newcastle, said its retail shops would not be affected by the proposed changes and like-for-like sales had grown across its managed stores. It said the plans would save it about £20m across the 2028 and 2029 financial years. The changes would take place over the next two and a half years, with parts of Greggs' manufacturing processes relocating, the firm said. The range of products manufactured at its Clydesmill Glasgow and Manchester locations would be reduced and production of tinned bread at Gosforth would be stopped. Some products would also be sourced from specialist suppliers. The firm employs 33,000 people in the UK, the majority working in its stores. The shake-up is expected to cost the firm about £60m, including disruption costs and redundancy payments. Greggs opened 95 new shops and closed 38 in the year to date, taking its overall estate to 2,796 shops.

BBQ - Why do you think Greggs have closed these factories?

Greggs

Vape Tax Comes Into Force

 

The price of vapes is set to rise as a new tax comes into effect, with the aim of making vaping less attractive to children and young people. The Vaping Product Duty will be imposed at a rate of £2.20 per 10ml of e-liquid. However, many customers will not see a jump in prices immediately, as sellers have six months to sell old stock at the pre-duty price. The government wants to reduce the appeal of vapes by making them more expensive, as more evidence of its adverse effect on health comes out, particularly on children and young people. The vaping industry has lobbied against the new tax, saying that affordable vapes help people to quit smoking. The duty will apply to all vaping products regardless of whether they contain nicotine. HMRC is also launching a stamp for vaping products which are traceable throughout the supply chain. All vapes sold in the UK must carry this stamp from April. John Dunne, the director general of the UK Vaping Industry Association, said: "This is nothing short of a tax on public health." He said vapes had helped "millions of adults cut down on or stop smoking". Experts say vaping is much safer than smoking, but it is not risk free and the long-term effects are less clear. The NHS has said that children and non-smokers should never vape.

BBQ - What impact will this have on Vape manufacturers?

Vape Tax

Nike Loosing Ground

 

It's been a difficult few years for Nike. The largest sportswear brand on the planet, named after the ancient Greek goddess of victory, has been losing of late. Losing sales, losing customers and losing ground to its rivals. The one-time industry disruptor is now the establishment and in the middle of a tricky turnaround plan aimed at clinging on to market dominance. Nike's latest financial results show signs a turnaround strategy is working however, its recovery has been dented by the loss of football star Kylian Mbappé, who ended his 20-year association with the brand last week to join fast-growing Swiss rival, On. To be clear, Nike is still a mega brand and popular the world over. But missteps have seen hundreds of billions of dollars wiped off its stock market value as its share price tumbled by 75% over five years. Matt Powell, a veteran analyst and adviser in the sports retail industry, reckons Nike has made "several strategic errors" which have been difficult to reverse, including cutting ties with retailers to sell only direct to customers online and making limited editions items more available. Other self-inflicted wounds he suggests include spending research and development cash on digital operations rather than new products. As demand weakened overseas in key markets like China, Nike announced cost cuts and redundancies. Its digital distraction allowed newer footwear firms on top of the trends to snap at its heels. Shop shelf space previously occupied by Nike was replaced by brands such as On and Hoka. This was a stark warning to a company that prided and built itself on innovation.

BBQ - Do you think Nike has lost market power?

Nike

Proteinflation

 If you’ve restocked your protein powder lately, you’ve probably noticed a major hit to your wallet—what industry experts are now calling “proteinflation.” Over the past few years, the price of standard whey protein has skyrocketed, with wholesale costs more than quadrupling and a typical large bag doubling from around £60 to well over £100. Why the massive jump? It turns out it’s a classic case of supply and demand economics. Protein is no longer just for bodybuilders; food companies are slapping high-protein labels on everything from bagels and cereals to water. Combined with a surge in demand from people using weight-loss drugs like Ozempic who need to preserve muscle, everybody wants a piece of the pie. Meanwhile, because whey is a byproduct of cheese production that requires expensive, specialized facilities to refine into powder, farmers and manufacturers simply can't expand supply fast enough to keep up. The result? You’ll likely be paying top dollar for those gains—or seeing brands swap out whey for cheaper alternatives like soy and pea protein.

BBQ - Will the price increase reduce the demand for whey protein by much?

Proteinflation

Lidl Banned From Selling Copyright Sandals

 

Lidl must stop selling copycat versions of Birkenstock's famous sandals in the Netherlands, a Dutch court has ruled. The discount supermarket chain faces a fine of €5,000 (£4,200) per day if it fails to comply and must also hand over sales data to Birkenstock, according to the ruling. Lidl must also compensate Birkenstock and pay its legal fees, with the amount to be decided in separate court decisions. Birkenstock said the judgement sent a clear message that "copycats must not be allowed to free-ride on [our] creativity and innovation". The ruling, which can still be appealed against, means Lidl cannot sell its copycat versions of Birkenstock's Arizona, Madrid, Gizeh, Boston, and Florida models across the Netherlands, after the court found the discount grocer infringed on the brand's trademark "footbed design".Europe's highest court ruled everyday commercial products can hold copyright if they represent creative design choices, a decision which Birkenstock said was relevant to its "iconic" sandals.

BBQ - How important is copyright law for businesses like Birkenstock?

Lidl Copyright

KFCereal

 

KFC UK and Surreal have launched KFCereal, a limited-edition breakfast cereal flavored after the fast food chain’s Original Recipe chicken. The pairing swaps the usual splash of milk for KFC gravy, marking KFC’s first move into the cereal aisle. Flavor leads the spec sheet. The crunchy cereal is seasoned with KFC’s closely guarded blend of 11 herbs and spices, giving it a savory profile far removed from the sweet, fruity and chocolate varieties that usually fill the category. The nutrition leans on Surreal’s high-protein formula. Despite its fried chicken inspiration, KFCereal delivers 19g of protein and only 1g of sugar, keeping it in line with the functional positioning Surreal is known for.Then comes the gravy. Rather than milk, KFC recommends topping the cereal with its signature gravy, and it positions the release squarely at die-hard fans, curious cereal eaters and anyone bold enough to make the switch. KFC brand manager Elspeth Allen framed the idea simply: “Our 11 herbs and spices have been doing a pretty good job on chicken,” she said, explaining that the team wanted to test the seasoning at breakfast. The cereal is currently only available directly from Surreal and is priced at £6 a box.

BBQ - Is this a well thought out product or simply a PR stunt?

KFCereal

Greggs Bitesize

 

Greggs has opened its first supermarket Bitesize Greggs at the Tesco Southwark Superstore, marking an expansion of its smaller shop format.This move is part of the food-to-go retailer’s plan to offer its popular range to customers in compact units in high-footfall locations.The new location will be open seven days a week and has created 10 local jobs in the area. The Greggs Bitesize store offers a full selection of products, including sausage rolls, steak bakes, sweet treats and fairtrade hot drinks. This move follows successful openings of ‘Bitesize Greggs’ locations across London Bridge Station, Sevenoaks Railway Station, Dartford Station and Cheshire Oaks Designer Outlet. This move is part of the retailer’s broader estate growth plans to open smaller format stores which support the Greggs’ traditional, larger locations.This year the retailer expects to open around 100 to 110 new shops and aims to open 3,500 UK shops over the long term.

BBQ - Is this a good long term strategy for Greggs?

Greggs Bitesize