dylans
overlord of all acorns
There is an article in the Guardian here talking about the business concerns of Findus and saying that they are already struggling financially and were planning on taking the whole company up market. Now that strategy is ruined. This could bring the company downNot Findus, at least I doubt. 100% horse in Lasagne. Not sure people will trust them in the future.
The best thing that can happen from Findus' point of view is if something else turns up with one or more of their competitors and this thing becomes a wider scandal. Otherwise they are going to feel the wrath of customers for the whole scandal.The company, which was bought by the private equity firm Lion Capital for £1.1bn in 2008, also owns the Young's Seafood brand. It has been struggling financially after it was loaded with huge debts, and was forced into a major restructuring last year, including a £220m cash injection.
A source familiar with Findus's operations said there has been "huge pressure" to lower the company's costs as it struggles to take its products upmarket.
"Until they could introduce new products for which consumers are willing to pay more - by taking frozen food upmarket - the only option they had was to reduce the cost line," the source said, adding that a series of executive changes meant the entire group was short of media expertise, leaving it exposed to the latest damaging revelations.
"No one in the company is responsible for communications as a full-time job. It is simply part of the marketing function, so the company is not set up to manage a crisis."
The same source said the scandal would deal a further blow to the group's efforts to make frozen food more upmarket.
"The last thing Findus and the frozen food industry needs is a reputational scandal … They wanted to introduce new brands, new products and take the whole category upmarket … The bet by Lion Capital was that instead of being 2 for £1 in Iceland, they could sell products for £3.50 in Waitrose. This scandal is a horrible setback for the company and a food category that is very unloved."
http://www.guardian.co.uk/business/...candal-findus-reputation?INTCMP=ILCNETTXT3487