Annual turnover at family-owned yoghurt and dairy manufacturer Yeo Valley has topped £200m for the first time – although profits fell by nearly £4m.
Latest accounts – for the year to May 29, 2011 – show that turnover up year-on-year from £176.6m to £201.7m but pre-tax profits collapse from £5.8m to £1.6m, a situation described by the group as unacceptable.
It added, however, that the figures reflect the continuing impact of cost inflation and commodity price rises in core ingredients and packaging.
Yeo Valley, based at Blagdon south of Bristol, continues to invest with notable success in advertising – millions have seen its pedigree British Friesian cows in TV adverts screened during the X Factor. The first, in 2010, featured rapping farmers while last year’s starred a farming-inspired boy band call The Churned.
The firm has 4.5m customers and produces Yeo Valley Organic yoghurts at its dairies in Blagdon and Cannington, bottles organic milk purchased from a West Country organic farming co-operative at its Crewkerne dairy and makes luxury desserts and ice cream in Newton Abbott, Devon.
Yeo Valley also produces a range of conventional retailer-branded products for most major UK supermarkets. In addition, it has two logistics centres at Highbridge and Axbridge while its head office is in Blagdon.
Staff numbers grew from 1,158 in 2010 to 1,404 in 2011 and the group also paid £5.1m in July 2010 for the trade and assets of A H Warren.
The firm said its yoghurt division continues to be ‘competitive’ and it expects the ice cream and desserts division to ‘contribute to overall profitability’ in 2012/13 with its milk, cream and butter business continuing ‘to perform well’.
The group, which produces around 4m kilos of products – 8,000 pallets – every week, said it is looking to “improve efficiency and cost effectiveness across the business”.
Meanwhile Yeo Valley has become the latest addition to the Soil Association’s Ethical Trade scheme.
All the milk used for Yeo Valley products – yoghurt, butter, cheese and milk – is now certified to Bristol-based Soil Association ethical Trade standards. Following a major rebrand, its new packaging – which includes the Ethical Trade logo – went on sale this week.
The Soil Association Ethical Trade symbol can be found on organic products which have met, and been independently certified to, high ethical standards across the whole supply chain from field to finished product. The standards cover trading relationships, employment conditions and social & cultural contributions.
Soil Association Ethical Trade standards are an added extra to the Soil Association’s existing organic standards. Organic businesses certified to the scheme can use the symbol to help demonstrate to consumers that they have gone the extra mile.
