Changing consumer trends burden Northern Foods’business

The British food company Northern Foods publish the second profit warning in two months as consumers shun biscuits,pastries and pizza.The manufacturer of Fox’s biscuits - among other products – said that profit for 2005 before tax and exceptional items will be around £45m,down 27% from 2004’s £62.2m. In the first two months of the fourth quarter,the bakery division suffered a 12% decline in biscuit sales compared to the previous year ”reflecting changing eating habits in certain product areas”, the company claims. Northern Foods is not alone in being slow to respond to the changing market.Even McDonalds plans to close 25 stores amid shrinking sales, despite the launch of McSalads and healthyoption Happy Meals. ”This is a critical time for brands and companies to consider their strategies and how they align to where shoppers are headed in their thinking and behavior toward health,” said Linda Gilbert of Health- Focus research group.And British waistline expanding.61.6% of consumers are now overweight or obese, compared with 54.2% Europe-wide.