2 Sisters Food Group has allegedly passed a £70 million rise in labour costs on to supermarket customers after changes to employer taxes and wages.
The poultry supplier, which works with Tesco, Sainsbury’s and Marks & Spencer, said it had faced higher costs from the increase in employer National Insurance contributions and National Living Wage rates.
The Telegraph reported that the business offset the extra £70 million cost through price rises to retailers. A Companies House filing for 2 Sisters Food Group Limited cited an annualised cost of around £60 million from the changes, had these not been recovered from customers.
The business, founded by Ranjit Singh Boparan, supplies around a third of poultry products eaten in the UK and processes 10.4 million birds a week across the UK and Europe.
Its latest results showed continued turnover rose 8.5 per cent to £2.38 billion for the year to July 2025, while profit before tax climbed to £108.3 million.
The group said profit was boosted by a £53.2 million gain from the disposal of its European operations, while net debt fell 43 per cent to £276.4 million.
2 Sisters said inflation in its main cost areas had eased before the conflict in the Middle East, with the exception of labour costs.
The supplier said lower feed costs were passed back to customers through the same pricing mechanisms, with average feed costs down five per cent over the period.
Supermarket chiefs warned last year that higher employment costs would feed into grocery prices, as retailers and suppliers faced pressure from wage, tax and energy increases.
2 Sisters said it remained “cautiously optimistic” about the year ahead, despite ongoing uncertainty from geopolitical tensions, government policy and regulation.
Boparan said: “We remain committed to investing in our factories and utilising advanced technologies, helping to grow our core business while supporting our sustainability ambitions.”
