French agri-food business Fleury Michon saw its sales fall by 2.6% over 2016, the company has announced.
This dip is primarily due to a weakened performance of its supermarket division in France, with its SKUs moving from hypermarket shelves less quickly than 2015, a year of ‘strong revenue growth.’ Its sales overall generated €737.8 million last year.
Its domestic supermarket division, from which it derives almost 85% of its revenue, saw sales down by 4.4% bringing in €625.2 million, with ‘relatively flat demand’ compounded by retailers’ price-cutting.
‘According to Nielsen data at 25 December 2016, FMCG revenue rose 0.9% in 2016 versus 1.1% in 2015, while volume increased 0.1% versus 0.3% in 2015,’ the French company said.
‘This situation reflects a need for responsible consumption – 'less but better' – illustrated, for example, by rising concern about food waste.’
Its international wing recorded a 13.5% improvement in sales, with its Canadian unit being the single most outstanding performer in terms of improved revenue.
This year, Fleury Michon said it will put greater emphasis on the healthiness of its products in its promotional campaigns.
The company said it 'will pursue and intensify the deployment of its project to 'Help people eat better every day', notably by focusing even more sharply on certified sourcing channels (J'aime, organic, Label Rouge, Bleu Blanc Coeur, etc.), product health benefits and additions to the vegetable protein range.'
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Peter Donnelly. Click subscribe to sign up for ESM: The European Supermarket Magazine
