The number of food and drink companies that have become insolvent in the UK has surged over the past year.
According to management consultancy group, Inverto, insolvencies in the sector increased by 108% to 278 in the 12 months to June, The Grocer reported.
Food manufacturing companies saw a 102% increase in insolvencies, while this rose to 123% for drink manufacturers.
Subscribe to Grocery Gazette for free
The group noted the collapse of many of these businesses came as a result of inflation of supply costs, as well as a rise in the cost of ingredients following the war in Ukraine, which left many unable to pay debts.
However, Inverto managing director, Mohamad Kaivan, told the publication that as prices fall, food and drink manufacturers should be able to negotiate costs down with supplies.
In June, some UK supermarkets began dropping prices of essential products such as bread, butter, cooking oil, pasta and cheese.
More recently, Asda and Aldi unveiled price cuts across fruit and vegetables, while Morrisons began dropping the price of select meat products in July, and Sainsbury’s expanded Nectar Prices to meat, fish and poultry for the first time.