Tunnock’s Teacake maker profit plunges 80% despite price hike
The maker of Tunnock’s Teacake has suffered a plunge in profits of more than 80%, with the business blaming an “unprecedented” jump in costs.
Sir Boyd Tunnock, owner of Thomas Tunnuck, said the rising cost of ingredients and energy had caused profits to drop from £5.5m to £1m in the past year.
This comes in spite of the company raising prices by an average of 10% since 2022, which has seen the price of a six-pack of Tunnock’s Teacakes in Tesco to £1.10 – up 11p from 99p.
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A spokesperson for Tunnock’s told the Telegraph that despite the company choosing to absorb the bulk of the costs, prices will still remain high.
In recent company filings, Sir Boyd added: “These cost increases are very challenging and have impacted the company’s financial performance.”
Tunnock’s, which is best known for its range of Caramel Wafer biscuits, Snowballs and Teacakes was founded in 1890 by Thomas Tunnock, Sir Boyd’s grandfather.
