Ethnic food sales suffer from recession

Sales of Westmill Foods are down on last year, as the UK’s ethnic food sector continue to suffer from the effects of the recession, according to its parent Associated British Foods (ABF).

In a trading update released today, the manufacturer said that it expected to report a fall in profits on last year at Westmill Foods, which includes brands such as Patak’s and Amoy. The trading announcement was made prior to the company entering the closed period for its full-year results to September 12 2009, which are scheduled to be announced on November 3.

It said: “The ethnic foodservice sector in the UK continued to suffer from the effects of recession, which has impacted sales by Westmill Foods, and its profit will be lower than last year as a consequence.”

ABF, however, said that its UK grocery businesses made further progress led by a strong performance from Allied Bakeries with increased margins from further improvements in operations.

Other brands continued to deliver growth, particularly Twinings, Ovaltine and Everyday tea. “Silver Spoon benefited from increased demand for home baking ingredients which, combined with distribution gains, resulted in higher sales and market share across the Silver Spoon sugar and Allinson flour ranges,” it added.

ABF also said that it will close its Newark packaging plant and transfer operations to an expanded plant at Bury. This is due to be completed in the Autumn.