John West, the prominent tinned fish manufacturer, has reported its first financial loss in more than ten years, attributed largely to its strategic decision to maintain a price freeze amidst global inflationary pressures.
In the financial year concluding on 31 December 2023, John West posted a pre-tax loss of £6.7 million despite achieving a sales growth of 4.9% to reach £134.5 million. This significant downturn is a result of the company’s deliberate choice to prioritise competitive pricing and long-term brand loyalty over immediate profit margins.
According to the company, the decrease in gross profit is linked to its strategic decision not to pass on the full brunt of global commodity price increases to consumers. This move was aimed at protecting its customer base and maintaining market share amidst rising inflationary trends.
Although John West experienced a setback in its financial performance, the company remains optimistic about its core UK market, describing it as ‘strong’. Looking to the future, the company anticipates potential expansion into new food market sectors and enhancements to its product offerings. In June, the company introduced a new recyclable aluminium ‘Ecotwist’ strip, reflecting its commitment to reducing packaging waste.
Earlier this year, the organisation saw a change in leadership with the promotion of Mark Doherty to managing director. Doherty, who has been with John West for the past 15 years and previously served as commercial director, now oversees both UK and international export markets.
Despite the recent financial challenges, John West remains committed to maintaining competitive pricing while exploring future growth opportunities in new sectors. The company’s focus on sustainability and leadership changes reflect its forward-thinking approach in navigating the current economic climate.
