The OC&C GROCER INDEX 2007

Sales are soaring. Up 8.7% on average. But in the boardrooms of the UK's food and drink manufacturers, a case of the jitters has set in. After a 10-year growth in profit margins, last year they declined from 8.6% to 8.4%. This may sound like a small figure, but with less than half the 150 companies in the OC&C/Grocer 150 index improving margins, and the number of loss makers growing from seven to 12, “these are signs that a broader squeeze is on,” says Luke Jensen, head of consumer and retail at OC&C Strategy Consultants.

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