Barclays starts Cranswick at 'underweight'

The bank said Cranswick's growth is likely to decelerate and margins moderate in the near term due to three key factors.

Firstly, it pointed to a shift from 'premium' to 'value' within own-label food as the UK economy enters a recession. Second, it noted that pork prices are normalising from a cyclical peak, which combined with increased competition among retailers could reverse recent price gains.

Finally, Barclays said labour inflation has picked up and Covid-19 has led to incremental costs in the supply chain.

"Given this backdrop, we do not see how Cranswick can recover costs from consumers who are unlikely to accept price increases and retailers who will be looking to recover their own higher costs."

At 1035 BST, the shares were down 1.9% at 3,754p.