Crisis-hit food group seeks to keep investors on side
Food group 2 Sisters has sought to tread a fine line with its investors, telling them it has “found some other areas of concern” at its West Bromwich site, but continuing to say that food safety regulations have not been breached.
The £3bn-turnover group is in the spotlight after a Guardian/ITV investigation made allegations about activities at one of its chicken packaging plant, including that dates were changed on food products and chicken was returned and then repackaged.
Over the weekend 2 Sisters suspended production at the West Bromwich factory where the footage was taken and began a re-training programme for its staff. The cost of closure is reportedly £500,000 a week.
Its most recent published annual accounts, for the year to July 2016, showed pre-tax profits of £110m.
In a conference call with investors, and reported by the Guardian, 2 Sisters’ chief operating officer Martyn Fletcher described the allegations as “a wake-up call” for the business.
The Food Standards Agency launched an immediate investigation, while major retailers Sainsbury’s, Tesco, Marks & Spencer, Aldi and Lidl had all stopped deliveries from the site.
2 Sisters is owned by Ranjit and Baljinder Boparan and the business produces products for the major UK supermarkets as well as owning brands including Bernard Matthews, Fox’s Biscuits and Goodfella’s Pizza. The wider group also owns restaurant chains Harry Ramsdens, Giraffe and Ed’s Easy Diner.
