John West, a leader in the tinned fish industry, has reported its first loss in over a decade due to its pricing strategy.
- The company posted a £6.7m pre-tax loss despite a 4.9% increase in sales to £134.5m.
- The strategic decision to freeze prices amidst global inflation impacted gross profits.
- John West remains optimistic, highlighting the potential for new product ranges and market entry.
- Mark Doherty was promoted to managing director to steer future growth and export markets.
John West, renowned for its dominance in the tinned fish sector, reported its first financial loss in over a decade, attributed to its price freeze strategy. The company recorded a pre-tax loss of £6.7 million at the end of the 2023 financial year, even though sales rose by 4.9% to £134.5 million.
The decline in gross profits was linked to John West’s decision to not fully pass on the inflation-related cost increases to customers. This strategic choice was aimed at maintaining competitive pricing and fostering long-term brand loyalty, rather than achieving short-term gains.
Despite the financial setback, John West expressed confidence in its core UK market. The company hinted at the possibility of future product range expansions and exploring new sectors within the food market, indicating a forward-thinking approach to its business strategy.
To invigorate its leadership, John West appointed Mark Doherty as managing director, reflecting a shift towards propelling its UK operations and international export markets. Doherty, with a 15-year tenure at the company and experience as the former commercial director, brings substantial expertise to his new role.
In a move towards sustainability, John West updated its product line with the introduction of recyclable aluminium ‘Ecotwist’ packaging earlier this year, underscoring its commitment to reducing environmental impact.
John West’s strategic focus on long-term growth and sustainability indicates resilience despite recent financial challenges.
