Young's in loss as new products struggle to hook shoppers

Despite increasing gross profit from £47.6m to £48.3m and turnover from £381.9m to £475.6m in the 15 months to 31 December 2009, Young's recorded a pre-tax loss of £23.4m, according to the latest accounts, the food and retailing news site the Grocer reports.   A £13m hike in administration costs and a £7m rise in the share of interest due on loans to parent Findus Group were blamed, as well as exceptional operating costs of £2.56m relating to redundancies and factory rationalisation. While Findus has enjoyed success with some ranges, other launches had failed to hit the mark with consumers. Young's 'It's In the Bag' fish range, which was launched last September, were reported by the Grocer to have failed to hit its £6m first-year sales target, achieving less than half that at £2.9m.

Young’s said the problem was not quality, but a failure to sccure the widespread distribution it had hoped for. Where it had been listed, the range had been "well received" by consumers, it claimed.