Mr Kipling's Exceedingly Poor Share Price

[Fab Foodie]

At the risk of taking this rather too seriously, I do suspect the Park Foods of this world are using Brexit as an opportunity to up prices. @Fab Foodie will have a far better idea than me but I suspect the cost to Park Foods of the imported raisins, almonds etc in a cake that retails at £2 is small. So even a 20% increase in these costs due to exchange rate movements will have a modest effect

I expect the margins on which they operate are exceedingly fine, so a small deviation in price of an ingredient with a high per unit cost will have a notable impact.

 

[screenman]

At the risk of taking this rather too seriously, I do suspect the Park Foods of this world are using Brexit as an opportunity to up prices. @Fab Foodie will have a far better idea than me but I suspect the cost to Park Foods of the imported raisins, almonds etc in a cake that retails at £2 is small. So even a 20% increase in these costs due to exchange rate movements will have a modest effect

There is more involved that just the ingredients when it comes to producing and selling a product.

 

[screenman]

Their major ingredients, Fat, Flour, Sugar can be UK sourced, but raisins, sultanas, almonds are likely to become notably pricier as Brexit approaches.
Unfortunately from a market standpoint, their products are stuck in a time-warp.
Whilst other cakes might be available of better quality locally, the benefit of Mr K's is that they have an exceedingly long shelf-life compared to local produce. I am stockpiling Mr K's products in a sekrit bunker for when the post-Brexit Zombie Apocalypse kicks-off....

I'll have the last laugh as the hipster cycling fraternity's moist Hoxton sourced banana-cake goes stale.....

Would there be a price difference in sourcing locally, there certainly is with what I sell.

 

[twentysix by twentyfive]

Can we just think about the workers for a minute.

I've done my 60 seconds

 

[screenman]

I've done my 60 seconds

You are so caring.

 

[Drago]

The largest part of the worlds economy is based upon speculation - the buying and selling of money in order to make money. In order to do this there needs to be constant movement in relative values of currencies, and the slightest excuse 'the markets' can find to drive this is pounced upon. This is why the pound fell markedly the other day, 24 hours before Theresa May was due to speak substantively for the first time about Brexit. The likes of Mr Kipling, God rest the great mans soul, who do something as crass as actually make things for sale, the people that generate real, tangible wealth in the form of things we can hold, touch, even eat, suffer as a result of the behaviour of the people that drive the market trends. We all moan, but still perpetuate the who 'system' and glibly blame other influences, from OPEC to Brexit, from China to Global Warming, when the speculators move the markets in a way that is detrimental to our interests, although it's invariably beneficial to theirs.

 

[nickyboy]

There is more involved that just the ingredients when it comes to producing and selling a product.

I know. My point is that say the £2 cake has 20p of imported sultanas, almonds etc at pre Brexit prices (and that, I suspect is a top end estimate). Then, as a result of currency movements, these ingredients go up in price by 20% from 20p to 24p. All the other costs in the chain remain the same. So Park Foods needs to sell their £2 cake at £2.00 plus the £0.04 extra cost and then the VAT thereon. So that would be £2.05

So in this example the overall effect is tiny. But it feels like companies such as Park Foods are passing on more than these additional costs

 

[broadway]

I wonder if it is anything to do with the proliferation of cookery/baking programs infesting TV these days. Maybe people are beginning to cotton on that cakes are better/healthier if you bake em yourself rather than buying something where you don't know what kind of 'industrial quality' crap they've used to make it.

(Maz bakes all the cakes in our house. )

There is also the Aldi affect as consumer's switch from own brands to supermarket own brand.

 

[screenman]

I know. My point is that say the £2 cake has 20p of imported sultanas, almonds etc at pre Brexit prices (and that, I suspect is a top end estimate). Then, as a result of currency movements, these ingredients go up in price by 20% from 20p to 24p. All the other costs in the chain remain the same. So Park Foods needs to sell their £2 cake at £2.00 plus the £0.04 extra cost and then the VAT thereon. So that would be £2.05

So in this example the overall effect is tiny. But it feels like companies such as Park Foods are passing on more than these additional costs

But it is as I said not just the ingredients that have gone up. A customer of mine buys 80,000 litres if diesel a month, stick an extra 15p on that lot.

 

[Speicher]

Modest maybe, but still raisin the costs.

That is the currant theory.