Grenade Faces Losses as Sales Decline and Investment Grows

Protein bar manufacturer Grenade has reported a significant financial downturn, recording a pre-tax loss of £237,763 for the year ending in March 2024. This marks a stark decline from the previous year’s profit of £12.1 million. According to recent filings with Companies House, the company’s revenue fell from £93.2 million to £80.5 million during the same period.

Sales Decline and Strategic Investments

Founded by entrepreneurs Alan and Juliet Barratt, Grenade was acquired by Mondelēz International in 2021. The acquisition placed it under the umbrella of a global giant known for brands such as Cadbury. Grenade’s domestic sales dropped from £83.3 million to £71.5 million in 2024. In contrast, revenue from Europe saw an increase, rising from £1.1 million to £4.6 million. However, sales outside these regions fell sharply from £8.7 million to £4.3 million.

A statement from the company’s board acknowledged operational challenges but emphasized that Grenade “broadly broke even in 2024, with an immaterial loss.” The statement highlighted a substantial investment aimed at promoting the brand and its products, which is expected to facilitate future growth. The board expressed optimism about expanding Grenade’s presence in core markets and entering new territories, leveraging its partnership with Mondelēz.

Contrasting Performance with Cadbury

The financial performance of Grenade contrasts sharply with that of its parent company, Mondelēz International, which reported a turnover of £2.4 billion for 2024, up from £2.2 billion in the previous year. Pre-tax profits for Mondelēz also saw a decline, dropping from £88.1 million to £61 million.

In a recent report by City AM, Cadbury demonstrated resilience despite losing its Royal warrant, seeing an increase in profits attributed to a rise in European sales. The company made headlines in late 2024 when it was removed from the list of Royal warrants for the first time in 170 years, a decision made by King Charles III. Despite this setback, Cadbury’s turnover surged from £155.8 million to £206.5 million in 2024. Sales in the UK remained stable at £64 million, while European sales more than doubled from £49.3 million to £103.6 million.

As a result of its increased sales, Cadbury’s pre-tax profit rose from £42.3 million to £52.4 million, showcasing a stark contrast to Grenade’s current struggles. The divergent paths of these brands under Mondelēz highlight the complexities and challenges facing the food and beverage sector amid changing consumer preferences and market dynamics.