Food Lover’s Market A numbers game
A check-in on Food Lover’s Market for the first three months of the year. Not a trading update, mind, because it hasn’t listed, and doesn’t plan to, and is still owned by the founding Coppin family. First quarter sales were up +24% as, despite its small size, it continues to compete on price with the big players, assisted by the vertical integration of its supply system in key segments such as fruit, nuts, vegetables and meat. For example, Food Lover’s imports nuts which it roasts and packages, saving on the middleman. And it runs its own two central meat facilities, helping it keep prices down in the butchery. This enables it to keep fruit and vegetable prices 10% to 20% lower than some competitors, and meat around 5% and 12% cheaper. It’s become a weekly destination for the middle-income punter, with about 50% of sales in meat, vegetables and fruit, and 50% in dry groceries. And while the business is getting clobbered by diesel costs like everyone else, it still has plans to grow, with another 25 stores on the cards by the end of March ’24.
Comment: A business with legs. The canny supplier might want to look for ways to partner and grow with Food Lover’s.