NEWS
19 SEPTEMBER 2025 ASIAN TRADER 9
Convenience retailers face
more challenges ahead, with
the food and drink manufactur
ers warning that mounting
pressures on manufacturers
will push food prices in UK
even higher.
According to the latest State
of Industry survey released by
Food and Drink Federation
(FDF), confidence among food
and drink manufacturers
remains concerningly low,
with negative confidence for a
fifth consecutive quarter.
At -40%, confidence among
manufacturers has remained
low and failed to recover since it
plummeted to -47% following
the Autumn Budget at the end
of 2024.
The study highlights that
the impact of that Budget and
other recent policy decisions
continues to concern food and
drink manufacturers.
More than eight in ten
(84%) said that the ongoing
financial impact of recent
government policies – such as
National Insurance changes
and the Upcoming Extended
Producer Responsibility (EPR)
packaging levy – was one of
their biggest concerns for the
year ahead, while nearly
two-thirds (63 per cent) said it
was a decline in consumer
confidence.
The cost of ingredients and
commodities (50%), a
shortage of skilled workers
(37%), the cost of energy
(32%), and government
prioritising other sectors for
support (21%) were all also
major causes for concern for
the UK’s food and drink
manufacturers.
With these mounting
pressures, average production
costs increased 6.3% in the last
12 months and are expected to
rise a further 3.6% in the year
ahead. This comes after a
period of record high inflation,
with food prices in UK went
36% higher than they were five
years ago and with rates of
inflation steadily on the rise
over the last year.
New challenges ahead for c-store retailers – FDF survey
Food prices in UK to rise as
Food prices in UK to rise as
manufacturing costs soar
manufacturing costs soar
More retail staff were at
risk of leaving their jobs
at the start of this
summer than at any other
time in the last two years,
new data shows, as
concerns around the
insecurity of retail
employment in conveni
ence stores deepened.
The latest Retail
People Index from the
Retail Trust and AlixPartners
found that 54% of retail
workers were a “flight risk”
between April and June
2025, which is a 19% increase
from the previous year.
More than 600 employ
ees were surveyed, and
answers to questions about
pay, recognition, develop
ment and work-related
anxiety were among those
used to help calculate the
flight risk score.
Overall, wellbeing fell
seven points year-on-
year, from 66 to 59, and
the number of retail
staff working while
feeling physically or
mentally unwell rose by
12%, to 44% of all
employees.
Separate data from
the ONS shows that
there were 93,000
fewer retail jobs in
March 2025 than in March
2024. The ONS also recently
revealed that retail saw one
of the largest drops in job
vacancies between May and
July 2025 compared to any
other sector.
More retail staff at ‘flight
risk’ as job fear rises
KitKat marks 90 years
KitKat marks 90 years
with new formats
with new formats
Indies could see new shopper
interest and incremental sales as
Nestlé’s flagship confectionery
brand, KitKat, celebrates its 90th
anniversary with a wave of
innovation and global campaigns.
KitKat, which began life in 1935,
has grown into its leading
confectionery brand by both
revenue and brand value, selling
over 5 billion bars annually in more
than 85 countries.
For retailers, the latest
development is the KitKat tablet,
recently launched in Europe, with
chocolate tablets now the second
most popular format in the region
– valued at £7 billion.
BAT US vape U-turn
BAT US vape U-turn
despite illicit trade
despite illicit trade
British American Tobacco is
preparing to launch its first
disposable vape in the US,
reversing years of opposition to
unlicensed single-use products.
The new Vuse One device will
use synthetic nicotine and go on
pilot sale in three US states,
despite lacking FDA authorisation.
“Not having access to this
world weighs on our company’s
bottom line,” said Luis Pinto,
spokesman for BAT’s US unit
Reynolds American, as it prepared
to test launch its first new
disposable product in the United
States since after unregulated
rivals hammered its sales.
100 big supermarket
100 big supermarket
stores risk closure
stores risk closure
UK grocery sector is facing a
significant shake-up as more than
100 large-format stores risk
closure due to impending business
rates increases on properties with
a rateable value above £500,000.
About 50 of Sainsbury’s 600
supermarket outlets will become
unprofitable as a result of the
higher property charges, accord
ing to people in the industry.
For Tesco, the changes would
tip tens of stores into the red,
according to a senior figure at the
company and 90% of Asda’s 600
supermarkets would be affected
by the business rate rise.