How to be a success through an economic downturn

At the same time the Hull-based firm has managed to expand its exports – sales to other countries rose by a heady 17 per cent last year.

It has championed its Britishness and the quality of its products and now customers in China, the US, Japan and Australia are clambering to buy British.

At the moment Cranswick’s sales to China are made up principally of ribs and products that the British consumer isn’t interested in such as offal, but it has ambitious plans to start selling British bangers in China and hand cured bacon in Japan following a leap in export sales to Asia.

Both China and Japan are developing a taste for Western delicacies from Burberry trench coats to Scotch whisky and now there is increasing demand for quality British food products.

Cranswick’s said the Chinese market is still the leading player, but Cranswick has strong aspirations to grow in Japan.

Chief executive Adam Couch said that there is strong demand for British style, non-processed sausages.

“Sausages are the one product line the Chinese want. I think we’d produce out there although initial products could be shipped out there. The chances are that we’d be using British meat,” he said.

“In Japan we’ll start with fifth quarter cuts of meat (products such as offal) and potentially move on to more mainstream products such as bacon. Bacon would also suit some regions of China.”

Cranswick has invested well over £30m over the past year and expects to invest the same amount this year.

This week it said shoppers are benefiting from lower pork prices as more people turn to the “alternative white meat”.

Sales volumes rose 12 per cent in the year to March 31.

​Analyst Charles Hall at Peel Hunt said: “​Cranswick delivered a strong performance with total sales up 7 per cent and like-for-like sales up 5 per cent in the year to March 2016. Underlying volumes grew by an impressive 10 per cent, with lower pig prices resulting in 5 per cent deflation. Margins continue to be healthy given the sharp reduction in pork prices from 140p at the start of last year to 115p now.”

Unlike many other companies, Cranswick hasn’t moaned about falling commodity prices. It has just got on with the job.

Back home, Cranswick is anticipating a record year for bacon, pork and pastry products as consumers branch out beyond the traditional roasts. New customer wins for gammon will also boost sales as people increasingly opt for other meats to accompany more expensive meats.

Mr Couch said the group had benefited from strong sales of pork shoulder, an expensive cut that has enjoyed a renaissance thanks to the increasing popularity of cooking pulled pork at home.

Clive Black at Shore Capital said: “Cranswick is in excellent overall shape. It is a story of an innovative business efficiently delivering high value added to its customers and the consumers from well invested facilities. Cranswick is a very well controlled business, the group has excellent management in our view and an enviable track record.”

Analysts point to the quality of its management as a major reason for Cranswick’s success. Chairman Martin Davey has been with the company for 30 years, guiding it through a vicious period of falling prices, lower consumer demand and stiff competition.

Its four executive directors have been with the company for a total of 80 years, making them foremost specialists in the sector.

The firm has invested heavily in its operations throughout the downturn, leaving it well placed for success during the economic recovery.

Cranswick is an excellent example of a Yorkshire company that has managed to thrive by increasing exports and investing throughout the downturn.