Md Tim Storer said bills for raw materials had been increasing for the last four or five years, and predicted there would be further rises to come.
Storer was speaking exclusively to FoodManufacture.co.uk at the firm’s Leicestershire factory at an event to mark its 50th anniversary.
In this podcast he looks back on how the business was founded by his father Trevor and mother Valerie.
They would make the pies in the family kitchen one day, and sell them the next from the back of a van.
Today, Pukka Pies makes 60M pies and pastries a year for food service, retail and sports stadium customers.
Economic downturn
In the podcast, Storer provided his take on the state of those markets and revealed how the firm has continued to grow in the midst of the economic downturn.
He also explained why investment in its Syston site in Leicestershire has been crucial and discussed a £7M upgrade which was completed last year.
However, he warned that ingredient costs would be by far and away the biggest challenge facing his company – and the industry as a whole – over the next 12 months.
Speaking at the anniversary celebrations last week, Storer also paid tribute to the company’s 300 staff for their efforts and announced he was granting them an extra day of holiday to thank them for all their on-going support and hard work.
He said: “Our staff have been crucial to our success and we are very proud that we have never had to make anyone redundant or place anyone on short time.”
Quality and innovation
Storer told guests he was predicting a bright future for the firm, providing it continued to focus on quality and innovation.
“Looking ahead, Pukka Pies continues to go from strength to strength and we are delighted to be celebrating our 50th year of business in 2013," he said. “Quality has been the Pukka Pies mantra from day one and that continues to be our focus 50 years on.”
“It is vital that in the changing economic and social climate we continue to innovate and provide our consumers with the superior products that Pukka Pies are renowned for while continuing to keep apace within the changing marketplace.”
Storer also explained in podcast why he believed the firm’s heritage and dedication to quality helped it escape unscathed from the horsemeat scandal.
The company has upped its retail presence over the past decade while also increasing its exports.
Pukka Pies now serves the UK; Ireland; Spain; Greece; Portugal; Germany; Austria; Belgium; Malta; Gibraltar; and France with a network of national and European distributors along with their own multi-drop delivery vehicles in the Midlands.