The pace of grocery prices inflation has slowed to its lowest rate in 15 months, with the average cost of a pack of butter now 16p less than a year ago (The Times £), The cost of some staple goods in UK supermarkets has started to drop as grocery price inflation fell for the seventh consecutive month to the lowest rate in more than a year, according to industry data (Financial Times £). The rate of grocery inflation eased considerably over the past month, part-aided by a “jump in the amount of money spent on offers”, according to a closely-watched study (Sky News). Grocery price inflation in the UK has slowed to the lowest rate in more than a year, with the price of butter down 16p compared with this time last year (The Guardian).
Cash-strapped Britons are cutting back on eating out and reining in on buying takeaways to save up for the expensive Christmas season splurge (The Guardian). Warm weather last month delayed early sales of Christmas food such as puddings and seasonal biscuits, research suggests (BBC).
PepsiCo has lifted its annual profit forecast for the third time this year as fans of Pepsi, Walkers Crisps and Doritos took price rises in their stride. (The Times £)
The maker of Pepsi and Walkers crisps is “studying” the effects of weight-loss drugs on its sales, after US giant Walmart claimed users of these medicines were buying less food (Telegraph).
Snacks and drinks group Pepsi reported solid earnings and raised its annual guidance. It simultaneously dismissed concerns that consumers are becoming less hungry. Consumer food companies have typically enjoyed stock price- to-earnings multiples of greater than 20 times stemming from their apparent stability and defensiveness. This is now subject to a novel and potentially grave threat… Drugs of the GLP-1 group suppress appetite with remarkable effectiveness. (Financial Times £)
Greencore, the UK’s largest sandwich maker, has been able to raise its annual profit forecast as the popularity of “food-to-go” endures despite inflation and increasingly cost-conscious consumers. (Financial Times £)
A return of tourists and commuters to high streets has boosted sales and helped to narrow losses at Selfridges (The Times £). Selfridges lost almost £40m last year despite a rebound in sales, after a surge in debt interest costs (Telegraph).
Retail sales growth slowed in September as shoppers limited their spending in the face of higher housing, rental and fuel costs, new figures show. (Daily Mail)
LVMH said wines and spirits had faced a difficult comparison with the same period in 2022. Sales of its upmarket wines and spirits declined by 7% in the first nine months of the year and by 14% in the third quarter. (The Times £)
A married couple who allegedly oversaw the collapse of Patisserie Valerie after a £94m hole was discovered in the accounts appeared in court charged with fraud. (Daily Mail)
Given its solid financial position, clear competitive advantage and excellent growth potential, Cranswick remains a highly attractive investment on a long-term view. (Telegraph)