John West, a renowned name in the tinned fish market, has encountered its first financial loss in over a decade despite an increase in sales.
John West, a major player in the tinned fish industry, has reported a £6.7 million pre-tax loss for the financial year ending 31 December 2023. This marks the brand’s first loss in more than ten years, signalling turbulent times despite a 4.9% rise in sales to £134.5 million. The company’s strategic decision to uphold competitive pricing amidst global commodity price surges played a crucial role in this outcome.
The company deliberately chose not to pass the full impact of inflation on to consumers, prioritising long-term brand loyalty over immediate financial gains. This decision was made against the backdrop of severe inflation in 2022, which led to a 13.5% decrease in sales, amounting to a £20 million reduction.
Despite the financial downturn, John West maintains a strong foothold in its core UK market. Looking ahead, the company plans to potentially expand its product ranges and venture into new food market sectors, where suitable.
Earlier this year, Mark Doherty was appointed Managing Director to steer the brand’s UK and international export markets. Doherty, who has been with John West for 15 years, was previously the Commercial Director for six years. Under his leadership, the company introduced new fully recyclable aluminium packaging to reduce excess waste in June.
The recent financial loss for John West highlights the complexities and risks associated with strategic pricing decisions in a volatile market. However, the company remains optimistic about its future, focusing on sustainability and potential market expansions.
