Fresh and fresh-prepared vegetable supplier Kettle Produce has moved to correct erroneous press reports surrounding its recent financial results announcement.

The Fife-based company posted pre-tax losses for the year to May 28, 2005 of £899,910 compared with a profit of £879,804 in the previous year.

Chief executive Susie McIntyre described as “ill-informed and unhelpful” reports in the Scottish press that the downturn in profits was “triggered by a demand from supermarket giant Tesco that the company stop supplying Morrisons”.

She said: “If the journalist involved had bothered to call I would have been happy to point out the main reason for this performance was bad weather in Europe during the winter months, resulting in reduced availability and increased raw material costs.

“It’s unfortunate and unhelpful that someone should put two and two together and come up with 12. Not only is Tesco a key strategic partner, but they have been fully supportive of our recent restructuring exercise and remain our largest customer.

“Indeed, Tesco’s business with Kettle Produce continues to grow in line with both of our expectations.”

The cold and wet summer in 2004 resulted in reduced summer sales and poor crop yields and prices. Additional costs were also incurred during the first phase of the company’s restructuring programme and due to increased operational costs such as fuel, labour, packaging and waste disposal.

Susie McIntyre added: “The fresh produce industry is a fiercely competitive market and trading continues to be tough, but we’re confident our strategic plan will see a turnaround in profitability over the next 18-24 months.”

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