Yeo Valley snaps up gourmet yoghurt maker The Collective

Yeo Valley is based in the South West

Somerset dairy company Yeo Valley has acquired fellow yoghurt producer The Collective for an undisclosed sum. The Blagdon-based business has struck a deal to take over Epicurean Dairy (UK) Ltd in the UK.

The Collective was first established in New Zealand by chefs Angus Allan and Ofer Shenhav, and within 10 months was the country's best-selling selling gourmet yoghurt.

The business launched in Britain in 2011 after the pair teamed up with the late Mike Hodgson, former managing director of pudding company GU, and its sales director Amelia Harvey.

The Collective makes a range of products including its popular 'Suckies' pouches for children and Greek-style pots with a layer of compote for adults. These will join Yeo Valley's portfolio which includes milk, kefir, butter and yogurt and ice-cream.

Rob Sexton, chief executive at Yeo Valley Production, said: "We are delighted to welcome The Collective to the Yeo Valley Production family. The Collective brand is renowned for never compromising on the quality and market-leading taste of its products. Add this to the values of the business, encapsulated in its B-Corp accreditation, and we see this as a perfect fit with Yeo Valley Production.

"This agreement will ensure The Collective brand continues to deliver taste-led innovation and great value. Together, we have ambitious plans to drive growth of delicious British dairy. It’s an exciting new chapter for us all."

Sarah Smart, chief executive at The Collective UK, said Yeo Valley Production was a "long-time partner" of The Collective and had been "integral" to the brand's growth journey.

"The close alignment of the businesses values and visions to deliver natural, healthy, great tasting and sustainable food that is better for people and planet, makes Yeo Valley the perfect home for the next stage of The Collective's growth," she added.

“I look forward to The Collective building on this success further and continuing to deliver more great tasting innovative dairy to British fridges.”

Law firm Thomson Snell & Passmore advised Epicurean Dairy Holdings on the sale.

John Lewis scraps staff bonus for third year in a row despite tripling profit

Despite nearly tripling its profit, the John Lewis Partnership has decided to forgo its staff bonus for the third consecutive year. The company, which owns both John Lewis and Waitrose, informed markets that its pre-tax profit surged from £42m to £126m over the 52 weeks to 25 January, as reported by City AM. Total sales increased by three per cent year on year, rising from £12.4bn to £12.8bn, while the firm's operating profit margin improved by 0.9 percentage points to two per cent. John Lewis revealed plans to "step up" its transformation plan this year, supported by a self-funded investment of £600m. This will encompass "store refurbishments and openings, technology upgrades, and supply chain modernisation." The company also intends to invest £114m in staff pay. These two investments mean its annual bonus will be scrapped this year-for the third year in a row. At Waitrose, sales grew 4.4 per cent to £8bn and volumes were up 2.6 per cent. Adjusted operating profit was £227m, up £122m year on year. Sales at John Lewis remained flat at £4.8bn, while adjusted operating profit was £45m. "These are solid results... we have made good progress," Chair of JLP Jason Tarry said. "Looking forward, I see significant opportunity for growth from both our Waitrose and John Lewis brands." Chairman designate Jason Tarry stated: "Our focus will be on enhancing what makes these brands truly special for our customers. This will involve considerable catch-up investment in our stores and supply chain, underpinned by a strong focus on the core elements of great retail, delivered by our brilliant Partners." "I am confident with the transformation momentum in the Partnership, we remain well placed to drive further growth in the year ahead and over the longer term," he continued. Chief Executive Nish Kankiwala, who is set to leave this year after a two-year tenure, commented, "both brands are showing momentum." Kankiwala also stated, "Tripling our profit is a significant testament to the progress of our transformation – focused on delighting customers while continuing to deliver efficiency improvements, thereby laying the foundations for long-term sustainable growth." Julie Palmer, partner at Begbies Traynor, called the results "encouraging." "However, there remains a long road ahead if the retailer is to win back the market share it lost to M&S and other rivals in the battle for Middle England's consumers," she added. "New Chair Jason Tarry is certainly sounding the right notes. The opening of new Waitrose stores, the reintroduction of John Lewis' 'Never Knowingly Undersold' guarantee, and an inflation-beating £114m investment into staff pay, should all bode well for the partnership.

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Gong Cha: Bubble tea brand to open 225 new UK stores in nationwide expansion

Bubble tea aficionado Gong Cha has unveiled ambitious expansion plans to launch over 225 stores in the UK, a move set to generate nearly 2,000 jobs, following a franchise agreement with Costa Coffee heavyweight Jinziex. Originating from Taiwan in 2006 and now headquartered in London, Gong Cha's partnership with Jinziex is a key part of its global strategy to hit 10,000 outlets by 2032, as reported by City AM. Jinziex, a nascent venture, is steered by a trio of industry experts: Diljit Brar of Goldex, Azha Rehman from Kaspa's Desserts, and Steve Falle, managing director at WY&SF Ltd. With a presence in 28 countries through more than 2,100 locations, Gong Cha currently operates 13 stores within the UK. Despite facing financial challenges as reported by City AM in September 2024, with sales declines in Korea, the US, and Australia, Gong Cha remains optimistic about its UK prospects. The first batch of Jinziex's Gong Cha stores are slated to open their doors in April, with locations including Sidcup, Gravesend, Romford, and Hornchurch. Paul Reynish, the global CEO of Gong Cha, expressed his enthusiasm for the UK market, stating: "Across Europe we continue to see fantastic interest from potential franchisees keen to bring the world's fastest-growing tea brand to their market." He added, "But where it mattered most to us was the UK, which is one of the most exciting markets for us globally." Reynish concluded with confidence in their new partnership: "After a careful selection process, we're delighted to partner with Jinziex – a proven and highly respected food and beverage franchise operator – who match our ambitions to become the clear bubble tea market leader in the UK. "As a market, the UK has huge potential for us. It's a market that is constantly evolving, ripe with innovation, and made up of consumers willing to try new and exciting products." "We firmly believe it is one of the most significant markets in the global F&B industry, and one of the reasons we relocated our global HQ to London in 2019." "Now, with our expanded footprint, we want to play a leading role in shaping the next decade of the UK's food and beverage industry, while cementing Gong Cha as a household name. We can't wait to show the UK how tea is meant to be." Diljit Brar, CEO of Goldex, added: "Gong Cha is a fantastic global brand with a truly unique customer offer that plays into the heart of changing consumer tastes and trends."

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Shein confirms plans for huge stock market float - and could pick London

Shein, the fast fashion behemoth, has confirmed its intentions to pursue an initial public offering (IPO), with London being a potential location for its listing. The company's chief executive, Donald Tang, spoke to The Times about the desire to go public as a means to bolster "accountability and transparency." While Shein had not previously set a firm date for its IPO, it is understood that the company engaged with the Financial Conduct Authority (FCA) last summer, amidst complications surrounding a US listing, as reported by City AM. Tang declined to provide details on the timing or expected valuation of the IPO but stated that Shein would list "whenever it's appropriate." Founded in 2012 in China and now headquartered in Singapore, Shein has been under fire for its environmental footprint and labour conditions. However, Tang defended the company, asserting that Shein "democratises" fashion and adheres to local regulations while maintaining low inventory levels to minimise waste. Acknowledging the UK as one of its top markets, Tang praised British regulators for their impartial approach to regulation, distinct from political influence. Shein has also joined the Confederation of British Industry (CBI), alongside major players like Shell and AstraZeneca, to reinforce its commitment to the UK market. This news of a possible London IPO comes at a time when the UK capital is facing challenges in attracting significant listings, with several companies preferring the New York Stock Exchange over the London Stock Exchange, including names such as Flutter and Arm. A potential Shein initial public offering (IPO) could significantly bolster London's financial sector. The company, a leader in fast fashion, was valued at a remarkable $66bn (£51.05bn) in 2023 and has been navigating intensifying competition from rivals like Temu. Initially eyeing a New York IPO in 2024, Temu changed course to London after failing to secure the necessary approvals from US regulators. Despite whispers of a near 40 per cent plummet in 2024 net profit, company spokesperson Tang firmly dismissed such rumours, asserting that growth metrics have continued to be robust. Shein's trajectory might still be steered by shifts in US policy; for instance, former President Donald Trump's proposal to impose new limits on tariff-free imports from China could affect the firm's principal market.

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Hellofresh issues stark sales warning after opening UK site shut and 900 jobs at risk

Hellofresh, the recipe box delivery firm based in Germany, has issued a warning that its sales are likely to drop this year. However, it anticipates an increase in profit as it prolongs its cost-cutting initiative, as reported by City AM. The company announced in the latter half of 2024 that its cost-saving programme would be extended until 2026. Hellofresh predicts a decrease in revenue, on a constant currency basis, of between three and eight per cent in 2025. Despite this, the firm aims to boost its adjusted earnings before interest and taxes (EBIT), excluding impairment, to between €200m (£168.6m) and €250m, a rise from €136m in 2024. It also expects its adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) to increase to between €450m and €500m in 2025. In a statement, the group said it concluded 2024 "with a strong financial profile that is reflective of the company's focus on pursuing higher profitability and cash flow generation over volume growth". For the past year, Hellofresh reported an adjusted EBITDA of €399.4m, a decrease from the €447.6m it achieved in 2023. Group revenue totalled approximately €7.66bn in 2024, representing a 0.9 per cent year-on-year growth on constant current terms. Dominik Richter, co-founder and CEO of Hellofresh, stated: "In H2 2024 we entered an efficiency reset period." "After five years of solid progress, highlighted by a 34 per cent revenue CAGR and an almost 9x increase in AEBITDA, we are now pursuing the next stage of our strategy." "This stage is initially marked by having to rightsize our cost base across all major categories and improve our unit economics." The company further underscored its commitment to fiscal management: "Driving strong AEBIT and free cash flow performance will enable us to make strategic investments in our product quality, variety and deliciousness in 2025 and beyond." Additionally, enhancing customer relations is a priority: "We are confident that levelling up the customer experience and product will contribute to higher retention of existing customers, and to unlocking new customer segments for the group." Hellofresh is set to announce its full set of results for 2024 on Thursday, 13 March. As reported by City AM towards the end of October 2024, there were plans to shut down one of Hellofresh’s significant UK sites, jeopardising 900 jobs. The Nuneaton distribution facility is expected to continue operations until mid-2025. This 237,000 sqft establishment, inaugurated in 2020, was Hellofresh's second location. Previously, in a month before, City AM disclosed that Hellofresh UK notably reduced its pre-tax loss as it approached the £500m turnover milestone and decreased its workforce by 15 per cent. For 2023, the company posted a pre-tax loss of £755,000 in its Companies House accounts, improving from a loss of £22.1m in 2022. During the same timeframe, the company's turnover rose from £468.4m to £489.9m. The results also revealed a decrease in Hellofresh UK's average workforce from 2,159 to 1,842 within the year.

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Kitchenware brand Procook to open Bristol Cabot Circus store

Kitchenware brand Procook is opening a new store at Bristol's Cabot Circus shopping centre. The branch will open its doors on Friday, March 7, and will sell cookware, tableware, electricals and kitchen gadgets. It will be the Gloucestershire-headquartered retailer's 66th UK outlet and will be based at Unit SU58 - a space previously occupied by Currys - on the ground floor of the shopping hub. The branch will employ eight people. To mark the opening, Procook said staff at the branch would be handing out "goodie bags" worth £25 to the first 50 shoppers through the doors at 10am on Friday and Saturday next week. Former Great British Bake-Off star Steven Carter-Bailey will also be showcasing his cooking knowledge with live demonstrations and tips for customers, the company added. According to Procook, the new Cabot Circus store will "complement" its existing branch at The Mall at Cribbs Causeway, in South Gloucestershire. Lee Tappenden, Procook’s chief executive, said: “We are delighted to be opening our new Procook store in Cabot Circus, a city renowned for its vibrant food scene and independent culinary culture. "It’s an ideal location for ProCook, where we can share our passion for quality cookware and inspire home cooks and food enthusiasts alike. We look forward to becoming part of this thriving culinary hub and providing an exceptional shopping experience for our customers.” The announcement comes just over two months after the Gloucestershire-headquartered retailer said it was “confident” of delivering growth after reporting an underlying operating loss of £1.8m for the first half of the year.

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Shoe retailer Office doubles profit to over £100m as it creates hundreds of jobs

The group that operates shoe retailer Office has reported a significant hike in profits, surpassing £100m as it continued to expand with new store openings and created numerous jobs. In the year leading to 30 June, 2024, the business— which also owns Offspring— declared a substantial pre-tax profit of £102.4m, as reported by City AM. This announcement marks considerable growth from the previous financial year's pre-tax profit of £47.7m. Office has witnessed a consistent profit increase since recording a pre-tax loss of £131.9m in June 2020, followed by a loss of £114m the preceding year. According to freshly submitted records at Companies House, the group saw an upsurge in revenue from £265.3m to £294.3m. By the close of the financial term, the group was running a total of 75 stores, an uptick from 70, as well as 11 concessions throughout the UK and Republic of Ireland. Furthermore, the average headcount in the group rose from 1,617 to 1,830 employees over the year. With an ambitious eye on further expanding its retail presence, Office has stepped up plans for opening additional stores. The board, in a statement, noted: "Trading conditions were much improved in the period under review." The board observed, "Although still negative, consumer confidence has improved steadily since the start of the period." They also commented on the ongoing fiscal pressures, stating: "However, consumer spending remained under pressure as a result of the fall in real disposable incomes that the UK has experienced since late 2021 combined with relatively high interest rates and modest economic growth." Despite facing macroeconomic headwinds, the board highlighted the robust performance of their product category, concluding that "Despite the macro challenges, the branded fashion footwear sold by Office proved to be a resilient category and traded well throughout the period. "The group continued to invest in its new store development and remodelling programme throughout the period, adding eight new stores to the portfolio, closing three and renovating, relocating and extending three further stores. "The investment in stores has been a success as they have exceeded the group's trading expectations and capital expenditure investment criteria." Regarding its future prospects, Office stated: "Economic growth forecasts for the UK have been raised for 2025, with the retail sector expected to experience tailwinds from improving sentiment, age increases again outpacing inflation, the prospect of further interest rate relief and the sustained low inflation environment. "Office will continue to leverage its strong relationships with the world's leading footwear brands, its loyal customer base across the Office and Offspring brands and ongoing investment in digital marketing. "Growth in the year ahead will be driven by a strong online presence and the expansion of the Office store portfolio through new store openings and the remodelling and extension of existing stores in strategic retail locations." Office was founded in 1981 and was acquired at the end of 2015 by South African clothing retailer Truworths. The latest accounts for Office come after City AM reported in November 2024 that rival Schuh had created almost 400 jobs in its latest financial year to push its headcount past where it was before the Covid-19 pandemic struck. The turnover of the footwear retailer, headquartered in Scotland, also saw an increase from £354.4m to £380.8m, while its pre-tax profit leapt from £13.4m to £21m. In May 2024, City AM reported that despite its revenue increasing to nearly £1bn during the year, Clarks suffered a loss of almost £40m in 2023. The historic company, based in Somerset, reported a pre-tax loss of £39.8m after making a pre-tax profit of £35.9m in the 48 weeks leading up to the end of 2022.

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Deliveroo called 'underappreciated' after quitting Hong Kong as rivals 'muscle it out'

London brokerage firm Panmure Liberum has hailed Deliveroo as "underappreciated" following its strategic withdrawal from the Hong Kong market. The firm downplayed concerns that the takeaway behemoth might be ousted from other markets by wealthier rivals, labelling such worries as mere "noise". This morning, Deliveroo disclosed its departure from Hong Kong, offloading some assets to Foodpanda and winding down others, as reported by City AM. The London-traded delivery service explained that persisting in Hong Kong "would not serve shareholders' best interests" Panmure Liberum analysts believe that Deliveroo's financial performance will see a positive impact from this move: "Both earnings before interest, tax, depreciation and amortisation (EBITDA) and group GTV growth [revenue] are set to benefit from this market exit," they commented. "[We think] Deliveroo can generate a level of cash flow over the long-term that is currently underappreciated by the market," Panmure further stated. While acknowledging the narrative that Deliveroo could be forced out of smaller markets by larger, better-funded competitors, analysts insisted that such fears should be considered "noise around the investment case." Keeta, an aggressive on-demand delivery titan from China known for its price-cutting tactics, entered the Hong Kong scene in May 2023 and swiftly dominated order volumes by the following May. Data from Measurable AI indicates that by January 2025, Keeta had captured a commanding 55.2 per cent market share. Analysts have noted: "With Hong Kong one of the most discount sensitive markets in Deliveroo's portfolio, it's clear that Meituan's Keeta has been able to muscle it out of the market through discount spend." In 2024, Hong Kong accounted for five per cent of Deliveroo's revenue and negatively impacted international revenue growth by five percentage points. Deliveroo reported a six per cent rise in revenue in the fourth quarter of 2024, aligning with its projected growth of between five and nine per cent.

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Takeaway owner says next month will be 'Armageddon' as NI and rates increase

The owner of a new sandwich shop in Birmingham says next month could be 'Armageddon' for the food and drink sector thanks to the imminent national insurance hike and rising rates. From April 1, national insurance contributions (NIC) will increase from 13.8% to 15%, affecting businesses with employees earning over £5,000. Additionally, the Retail, Hospitality and Leisure Business Rates Relief scheme is set to reduce business rate discounts from 75 to 40 percent. In anticipation of these changes, Harrington's Gourmet Sandwiches, has revised their menu prices. Owner David Dindol told Birmingham Live : "I'm very scared, April 1 is going to be Armageddon." He also mentioned that wage increases at sister venue Missing Bar would necessitate price hikes, a move expected by many businesses in the hospitality sector. Mr Dindol added: "We're hiring more part-time staff and the rate relief scheme has been a big hit on us as well." Concerns extend beyond Harrington's, with social media indicating that several pubs may close their kitchens due to the financial strain. Mr Dindol warned against entering the hospitality industry, saying: "Hospitality is a minefield and if someone said to me they wanted to own a pub, I'd say don't." The Labour decision has also drawn criticism from two Birmingham landlords outside of Harrington's. Gary McDonnell of Hennessey's sharply criticised the policy, claiming it will "kill pubs". Meanwhile, Nigel Barker of The Wellington confirmed that the pub would be raising its prices, describing the move as "a really poor decision from the Labour government."

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Fenwick says it has 'no plans for store closures' as it calls in restructuring experts

Department store retailer Fenwick has confirmed that it has no intentions of closing stores, despite restructuring experts assisting the business. The Newcastle-based firm has experienced losses in recent years and is currently changing the hosting of its website as part of cost-cutting measures. Consultancy firm AlixPartners is working with the chain, which now has eight stores across the country. Fenwick has been operating at a loss since 2019 and sold its Bond Street, London store in a £430m deal in 2022. Last year, management acknowledged that trading had been difficult due to the cost-of-living crisis - fuelled by inflation and high mortgage costs - and shifts in the retail market. Accounts for Fenwick Limited, covering the year up to January 2024, reveal the business reduced its pre-tax losses from £71.1m to £38.1m. At the same time, operating losses before exceptional items - encompassing property sales - decreased from £46.6m to £45.2m. Company executives have talked of their attempts to attract both new and existing patrons to the chain's sophisticated, multi-brand offerings throughout the UK. They have discussed strategies aimed at enhancing efficiency in their shops and supply chain, as well as returning to profit through a commitment to what they referred to as "retail basics" and protecting product margins, reports Chronicle Live. Following the closure and sale of its Bond Street location, Fenwick operates its flagship establishment in Newcastle, along with other sites in Kingston, Brent Cross, Colchester, Canterbury, Tunbridge Wells, Bracknell, and York. The business has focused on distinguishing itself from its competitors by investing in customer service and hospitality experiences. In Newcastle, Fenwick’s "masterplan" has led to collaborations with North East staples such as Greggs and Barbour, plus Michelin-starred eatery Hyem, and the Mother Mercy cocktail bar. The business has also expanded its private-label merchandise dubbed Fenwick at Home products, alongside its own restaurant ventures Fuego and Mason and Rye. Last year, in Newcastle, it opened what it claims is the UK’s largest beauty hall outside London last year. Notably, Fenwick was criticised for its delayed response to the surge in online retail, initiating its web presence as late as 2019. Despite predictions for greater growth online, the company maintains that its brick-and-mortar outlets will continue to reign supreme in sales for the foreseeable future. After an unsuccessful attempt to bring former Harrods senior executive Nigel Blow on board last year, the reins of Fenwick have been taken up by family members Mia Fenwick, serving as executive deputy chairman, and Hugo Fenwick, in the role of retail managing director. It is believed that under their stewardship, the company has witnessed its most favourable six-month trading period in the past five years.

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Applied Nutrition seals USA and Holland & Barrett deals as its Coleen Rooney range expands across UK

Health and wellness brand Applied Nutrition has announced three new American deals – and an expanded partnership with Holland & Barrett that will see its new Colleen Rooney range go on sale in hundreds of UK stores. Knowsley-based Applied Nutrition has agreed a joint business plan with Holland & Barrett that will see the health and wellbeing retail chain increase the distribution of currently listed products and take a range of new ones. The Mersey firm said: “The first order under the new JBP was received this month and included the new Coleen Rooney range, which will be available in 500 stores” The deal will also see Holland & Barrett get early access to Applied Nutrition’s new products in development, allowing them to get products to their shelves more quickly. Applied Nutrition hopes the deal will treble its revenue from Holland & Barrett, already one of the group’s largest customers. In the USA, Applied Nutrition has secured deals with GNC Corporate, one of the largest specialty retailers in the US, Hy-vee, the largest regional grocery chain in the Midwest, and leading Texan grocery chain H-E-B. Applied Nutrition products will now go on sale in more than 1,000 new stores across the country, and the group says the deals “are expected to start contributing to revenue during H2 FY25 with an annualised spend of $3m”. Thomas Ryder, CEO of Applied Nutrition, said: “It is great to see such momentum with existing and new customers, further reinforcing the growth potential of the business. Not only are we significantly strengthening and growing our trade with existing key valued partners such as Holland & Barrett we are also securing new listings from major retailers in the US which is a key growth market. We look to the future with confidence and we remain focused on driving profitable growth throughout H2 and beyond.”

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