Profit on paclet of crisps - Very NB!

[cngarrod]

I think i should give a bit of background on this...

Current Comic Relief Walkers promotion on new flavours... 1p to Charity for every packet sold.

So this got me to thinking... i pay about 30p/packet as an average for a packet of walkers finest and a penny goes to charity - so is the profit that Walkers make / packet or just a donation?

This is not in anyway meant as a dig at Walkers or anyone - just idle curiosity really!

Cheers,

Craig.

 

[BrendanS]

Well you can buy them at wholesale for about 15p per packet, supermarkets with higher purchasing power prob much cheaper still. With the volumes they are being produced at, probably not much more than 1p per packet to manufacture (the raw materials are not exactly expensive when bought in volume) so most of costs are in plant, manpower, marketing and distribution. They must be making over 10p profit per bag, and the retailers nearer 15p without allowing for their overheads.

 

[BarryH]

Brendan, you amaze me at times!

 

[BrendanS]

I'm only guessing, but sort of educated guess if that makes sense. I did try to find out what their turnover and profit is,and how many bags per year they manufacture, but as they are part of pepsico, that information isn't easily available for the UK. The BBC do say they control 50% of the market which is worth £2billion per annum in the UK, so they are turning over £1billion each year.