More Consolidation In The Cake Industry, Could There Be More Ahead ?
Greencore Group plc has announced it is selling its wholesale cakes and desserts bakery business based in Hull to Bright Blue Foods Ltd, who are one of the UK's leading ambient cake manufacturers.
This means Greencore has completely exited from the UK cakes and desserts sector. Meanwhile Bright Blue Foods Ltd have now become a major player in the ambient cakes and dessert market.
It doubles the size of Bright Blue Foods to be known as BBF (Hull) Ltd. The new formed business will have turnover of over £140m, employ over 2,000 people over five sites.
Bright Blue Foods is already a big supplier to UK retailers with private-label and ambient cake. Jonathan Lill, Bright Blue Foods CEO says:
“This is a really exciting time for our company, our people and our customers. The product range and customer base from both businesses are very complementary,.”
Grain D'or closed recently unable to make profit on £120 million sales so this could be the start of a wave of consolidation in the cakes industry with already large companies becoming larger through acquisition or takeover
and sheltering themselves against rising costs by driving down costs with economies of scale