Cranswick sales lifted by shoppers' demand for pork

SHARES in upmarket sausage maker Cranswick jumped over six per cent last night after the group announced a sharp jump in profits and said it is optimistic about future trading.

The Hull-based group, which supplies fresh pork and gourmet sausages to the leading supermarket chains, is seeing strong demand as consumers switch to "the alternative white meat" for both health and money reasons.

Cranswick's sales and marketing director Jim Brisby said demand for pork has risen by five per cent thanks to celebrity chefs using different cuts such as belly pork and shoulder of pork in their dishes.

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While a prime cut of beef costs 27 per kilo and lamb costs 16 per kilo, pork costs just 9 a kilo.

"Pork is a very versatile meat," said Mr Brisby. "It's stealing market share from beef and lamb and it's increasingly being seen as a healthy option."

Cranswick posted a 12 per cent rise in pre-tax profits to 23.8m during the six months to September 30 and raised its interim dividend by 10 per cent to 8.8p a share.

Chief executive Bernard Hoggarth said the group is confident about the second half of the year as the company moves into new categories.

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These include the recent launch of gourmet sausage rolls under the 'Yorkshire Baker' brand name.

The brand, which is handmade using all-butter pastry and gourmet recipes, is already in 600 Tesco stores and Cranswick is in talks with other retailers.

Cranswick shares, which have risen by 16 per cent over the past year, closed up 51.5p at 837.5p last night.

The group has invested heavily in its production facilities over the past year and it is geared up to produce 800,000 cocktail sausages and 400,000 sausages wrapped in bacon in time for the all-important Christmas season.

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The 9m investment means the group's Lazenby's facility in Hull can produce 700,000 tonnes of pork products a week, up from the previous 500 tonnes.

Despite the economic downturn, Cranswick said customers still rate animal welfare high up on their list of priorities.

"Customers have not abandoned their principles," said Mr Brisby. "Freedom Food continues to grow and we are increasing the number of British outdoor reared and outdoor bred pigs."

The group said that bacon sales continued the strong growth seen previously, rising 24 per cent over the six months.

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Sausage sales rose eight per cent, helped by a good barbecue season during the early summer months which benefited from good weather and the impact of the World Cup.

Sandwich sales rose by 19 per cent, although the group warned that the sandwich sector is experiencing price increases from bread suppliers. Poultry prices are also expected to rise.

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