The boss of Warburtons has said the bakery giant would not be where it is today without the help of Hollywood A-listers Samuel J Jackson, George Clooney, Robert De Niro, Sylvester Stallone – and The Muppets.
Chairman Jonathan Warburton, part of the fifth generation of the family to lead the Bolton business, has seen the firm’s finances transformed in recent years by the use of film stars in its adverts.
The tactic, which has come at a hefty financial price, seems to have paid off in spades, with Warburtons being elevated to a truly household name and its sales and profit surging.
Speaking as part of the latest Boardroom Uncovered episode, Jonathan Warburton said: “To use a very, very, very famous quote from a Boltonian of the past, Lord Leverhulme, is that ’50 per cent of my advertising budget works, I just can’t tell you which 50 per cent’.
“What I can tell you is that is that if we didn’t do it, the business would not be in the position it’s in today.”
Warburtons ‘is not for sale’ – boss
Warburtons has deep roots in Bolton and is preparing to mark its 150th anniversary.
When asked whether he feels a responsibility to previous generations of his family to keep the firm going, the chairman said: “You don’t think about it but of course you [feel it].
“I was born who I was. I didn’t choose this. People say ‘oh it’s alright for you, you’ve had a leg up’. Well it’s what you do with the leg. It’s not whether you’re born with it.
“Only three per cent of family businesses get past the third generation.”
Warburtons has remained a family-owned business over the last century and a half – and the current generation leading the company has no plans to change that.
Jonathan Warburton added: “We [the family] have done very well financially out of it. We’ve achieved a lot.
“I don’t see any attraction whatsoever in not being a private family business. I just don’t see the benefit.
“The reason why people do it is to get enough money to go and do other things. I don’t want to do anything else.
“We have made it very clear that the business is not for sale.”
Profit doubles as sales hit record high
The Boardroom Uncovered interview comes after Warburtons more than doubled its profit during its latest financial year after the company poured investment into diversifying its product range beyond its iconic loafs.
The company grew its pre-tax profit to almost £30m in the 12 months ending September 30, 2023 – a huge jump from the £13.3m it made the year before.
Its turnover increased by 17 per cent during the year, hitting a new record high of £711m compared to just over £600m in the period prior, despite the soaring cost of its raw ingredients and rising wages.
The firm’s accounts for its most recent financial year are due to be filed with Companies House by the end of June 2025.
Boardroom Uncovered
Boardroom Uncovered is City AM‘s flagship on-camera interview series, featuring the top bosses of the biggest and best-known companies operating in the UK.
Previous guests have included the likes of Sir Tim Martin, the founder and chairman of pub giant Wetherspoon, Graham Bell, the CEO of B&Q, and the founder and CEO of Pensionbee, Romina Savova.
Boardroom Uncovered has also featured IKEA’s UK&I CEO, Peter Jelkeby, the CEO of the Virgin Group, Josh Bayliss, the president of Robinhood UK, Jordan Sinclair, and the CEO of Purplebricks, Sam Mitchell.
To catch up with all the previous episodes, click here.