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Price war hurting U.K food suppliers

As grocers slash prices, fallout becomes serious for suppliers

As food prices in the U.K. drop, the number of food suppliers going out of business could rise.

A recent report by Begbies Traynor, a U.K. firm that specializes in corporate recovery, shows that there's been a 92% increase in "significant distress" within the U.K.'s food and beverage manufacturing industry, making it the worst performing sector in Q4 of 2014.

The firm predicts that more than 100 of the 1,410 "significantly" distressed food and beverage suppliers will fall into administration (which, in some cases, means the company must be managed by an external administrator to try and solve its money issues) in 2015.

The report also showed that the number of businesses trying to make ends meet nearly doubled from 733 at the same time last year to 1,410 now.

Part of the problem is the way major grocers are treating their suppliers unfairly and negatively impacting suppliers' profit margins.

Read the full story here.

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