Investment in promotions results in profit surge for Coatbridge Confectionery Company
June 3, 2011 by Michael
Coatbridge-based Lees Foods has seen their pre-tax profits rise by over 40% thanks to an increased investment in promotional activity.
Lees Foods, the company behind sweet-shop classics such as Snowballs and Snowcakes have seen an impact from the rising costs of raw material and an increasingly tough market. However, Lees have been able to combat this with efficiency drives and cost saving exercises, such as cutting down on packaging. Chief Executive of Lees Foods, Clive Miquel, said:
“The tough decisions that we have taken to mitigate cost increases have made us leaner and put us in a strong position to achieve our future growth ambitions.”
By having measures in place to counteract rising commodity costs and making their operation more efficient, Lees have remained buoyant in a tough economic climate.
By combining efficiency savings with an increase in investment for promotional activity, Lees Foods have been able to report a year-on-year sales growth on3%. This is positive news for local businesses in Coatbridge as this uplift could see other firms following in the footsteps of the confectionery company by investing more in their own promotional material. From posters to POS printing, Coatbridge businesses like Lees could benefit from raised brand awareness which in turn could positively affect sales.
As well as producing 50 million Snowballs every year, Lees Foods also an ice cream cone production facility, the Waverley Bakery. Lees have committed to focus on the Lees Brand going forward and have released a new product, Lees Mallow Dreams, which the company hopes will set them in good stead for the future.