The island’s only flour mill is set to raise prices and reduce pack sizes in what the company describes as a necessary move after ‘a difficult few years’.

Laxey Glen Mills Limited, which is owned by the Isle of Man Government, has announced that the changes will come into effect from September 1.

The price per kilogram for its flour products – including plain, strong bread, wholemeal, and malted – will increase from between £1.07 and £1.60 to between £1.45 and £2.30. At the same time, the standard retail pack size will be reduced from 1.5kg to 1kg.

Supermarket chain Tesco has confirmed it will delist three of the mill’s flour lines following the price change. However, the company says it has worked closely with Tesco to retain its four best-selling products and maintain a presence in stores.

A spokesperson for Laxey Glen Mills described the outcome as ‘a hugely positive step’, adding that point-of-sale materials and sampling events are planned to raise awareness of the updated range. Tesco is also understood to be open to reviewing the delisted products in future, depending on demand.

The company is currently in talks with the Co-op brand about stocking its flour in island stores and continues to supply existing local customers including Agrimark, Robinson’s, Noa Bakehouse, and Ross Bakery.

Laxey Glen Mills has operated for more than 160 years and remains a small-scale business, employing three full-time and two part-time staff. All of its milling wheat is sourced locally from Manx farmers within a 12-mile radius of the mill.

Sarah Coole, head of business development at Laxey Glen Mills, said the changes were aimed at aligning the mill’s products with wider market trends.

‘Our current retail packs are 1.5kg, and when we were doing our market research, it became apparent a lot of other brands we consider to be our competitors are already retailing in a 1kg pack,’ she said.

‘Straight away, we're different to the rest of the market in terms of the format itself, as well as price. The market price for 1kg of flour is typically £1.60, but our higher pack size meant our prices were 40% below the market average.’

She added: ‘We believe we should be priced alongside the major brands due to our quality and 165 years of heritage.

Ms Coole said the business had faced major challenges since the closure of Ramsey Bakery, which had been the mill’s largest customer.

‘Things have only gone from bad to worse since Ramsey Bakery closed,’ she said.

Ramsey Bakery ceased trading in 2022, blaming rising costs that had made the business unsustainable.

Despite recent setbacks, Ms Coole said she hoped the pricing changes would help put the mill on a stronger footing.

‘We believe that this price change is like a turn-around moment for us, and that hopefully we'll be able to start changing the direction of the mill,’ she said.

‘The price and volume of the flour has changed, but the quality of the product is exactly the same as always. Essentially, the mill hasn't been in the best place, and this is all about making sure we’re getting the basics right – that starts with the selling price.’

She added that as a publicly owned operation, the changes could also help improve returns to taxpayers.

‘Previously, we haven't been on a level playing field, and we've not kept pace with the market. We're now adjusting to the market and hoping to change the direction of the mill. It would be nice to be in a position where we are actually making money for the taxpayer.’