Punishing rises in input costs, cautious consumers and a predicted rise in capital gains tax will drive further consolidation in the US bakery sector this year and next, packaged bakery giant Flowers Foods has predicted.
Mondi said its underlying operating profit of €187m in Q1 2011 showed its performance continued to improve but acknowledged that rising input costs and the weakening US dollar were hitting margins.
An overall decline in manufacturing costs appears unlikely to shift food processor concerns over higher prices for their goods, according to new UK statistics out this week.