9 Finsbury Food Group Annual Report & Accounts 2016
We will produce a broad range of high quality products, targeted at growing channels and market niches, which deliver growth and
Creating
shareholder value.
Our growth strategy will continue to be delivered by a combination of organic growth and targeted acquisitions. Consolidating our market share in existing areas, such as celebration cakes and organic bread, as well as diversifying our existing product capability into new channels such as foodservice, cake will deliver the organic growth. Further acquisitions will introduce new product, market consolidation in our core product areas.
Our Markets
The total UK ambient cake market (including pre-packed cake and in-store bakery (ISB)) is valued at £1.09bn (source: Kantar World panel 52 w/e 19 June 2016). The past 12 months has seen market value and unit sales fall by 0.4% and 1.5% respectively. Ambient Cake is marginally outperforming ISB Cake over this period. We continue to perform well in our core markets of celebration cake, whole cake and cake bites.
Annual retail bread and morning goods sales are in excess of £4.0 billion (source: Kantar World panel 52 weeks to 19 June 2016) but the market is in decline, driven by the fall in sales of packaged sliced bread. We are a niche player in the packaged sliced bread market, instead we are focussed on the growing sectors of bread and morning goods such as artisan bread, hot cross and morning pastries. The foodservice bread and morning goods market continues to grow and has sales in excess of £800 million and the UK foodservice cake and sweet treats market is worth approximately £600 million per annum (source: NPD group/management 52 weeks to 30 June 2016). Growth is coming from a number of categories with the star being added value burger buns such as brioche burger buns.
Our Business
The Group consists of the UK bakery and the Overseas sectors businesses.
UK Bakery UK bakery has eight factories each with its own range of products and manufacturing capabilities and employing in excess of 3,000 people across the following bakery companies.
• Hamilton and is the UK’s largest supplier
of celebration cakes.
• and is the leading manufacturer of the UK
retailers own label sharing cake.
• Fletchers Group of Bakeries has three
fresh and frozen bread and morning good products, which are distributed to leading UK retailers and foodservice customers.
• Kilbride and produces bite style cake products,
including its renowned caramel shortcake. It supplies foodservice customers, particularly
• and produces a range of speciality bread and morning goods which are distributed to UK retailers and, following the Fletchers acquisition, to foodservice customers.
• Twechar near Glasgow and produces cold set
products such as caramel shortbread and
The Group’s bakery product range is comprehensive and includes: •
• Small snacking cake formats such as cake slices and bites.
• Artisan, healthy lifestyle and organic breads
and morning pastries, all of which are available both fresh and frozen dependent on customer channel requirements.
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