The bakery sector saw several substantial investments made in 2024, with new factories, equipment, and expansions of ranges and retail estates on shopping lists.
As the New Year approaches, British Baker glances back over the major funding and expenditures over the past 12 months that are designed to future-proof businesses for the years to come:
Baker & Baker makes a smart cookie move
Sweet treats manufacturer Baker & Baker installed a brand-new £2.9m cookie line at its Wirral site in the spring to keep pace with rising demand for American-style cookies. Designed to increase production capacity and improve quality, it adds to the company’s two existing lines that supply a range of cookies for retail and foodservice own-label lines along with Cadbury cookies as part of its licensing partnership with Mondelēz.
Among the purchased machinery was a wire cutter, mixer and mixing bowls, and weighing hoppers, with new workspaces including washrooms as well as sieving and de-boxing areas also created on the factory floor.
Revenue from Baker & Baker’s UK operations rose by 12.8% in 2023 but profits were dampened by commodity price increases.
Deans of Huntly lands funds to boost shortbread exports
A £750k financing package from Virgin Money in May is helping Scottish shortbread specialist Deans of Huntly ramp up production ahead of seasonal sales spikes during the likes of Christmas, Valentine’s Day, Mother’s Day, and Chinese New Year.
The Aberdeenshire-based family-owned business already exports to markets including Germany, the US, Australia, and China, supplying both its branded shortbread and own-label products to major retailers there.
Ministerial department UK Export Finance worked with Virgin Money to secure the trade finance for Deans with a guarantee offered through its General Export Facility product, which was launched in 2020. To date, this has enabled British exporters to access over £325m in new working capital loans.
Doughlicious stays cool with £3.5m raise ahead of US launches
Hot on the heels of its brand refresh in March, gluten-free snacking brand Doughlicious wecolmed a £3.5m investment from Dutch group Triple B to support its continued growth and market penetration, including a nationwide launch of frozen Cookie Dough and Gelato Bites in Whole Foods Market stores across the US.
The company produces a range of chilled and frozen cookie dough products at a bespoke 22,000 sq ft facility in West London that runs on renewable energy.
“Doughlicious is delighted to embark on this exciting journey with Triple B,” commented Kathryn Bricken, who founded the brand in 2014 after moving to London from the US. “Our partnership represents a synergistic alignment of values and vision, as we continue to redefine the snack category with our innovative products and unwavering commitment to quality and sustainability.
Good Guys Bakehouse to take the biscuit to new heights
The challenger brand raised £550k from FMCG angel investors in May to fuel retail growth for its range of low-fat biscuit melts.
Aimed at driving incremental category growth in savoury biscuits, Good Guys rolled out its palm oil-free, wafer-based products in Cheddar and Peppered flavours into Sainsbury’s and Ocado last year. More recently, it extended the line-up with the new Paprika variety.
The firm noted that the new funding is to be used on ramping up marketing, support new product development, and expand the team.
“There’s a clear consumer appetite for tastier and healthier savoury snack biscuits, baked with more cheese than the leading cheese biscuits brand but with only five calories per biscuit,” commented founder Steve Monk. “Now, with a successful investment round complete, we are in a strong position to scale up our grocery presence in the UK, driving distribution, and opening up new listings”.
Geary’s Bakeries set for bigger slice of sourdough market
An £8m investment in a new manufacturing facility in Leicester is helping Geary’s Bakeries keep up with growing demand for its Jason’s Sourdough branded range of loaves and rolls. Located across the road from its existing bakery in Glenfield, the new 95,000 sq ft site will double the company’s footprint and capacity and is expected to be operational around Q2 of 2025.
“The popularity of our Jason’s Sourdough products has grown exponentially over the past year. This investment in our facilities and capacity will allow us to future-proof the growth of the business and continue to develop and deliver quality sourdough to households around the UK,” said Jason Geary, fourth generation master baker of Geary’s Bakeries.
New products launches from Jason’s Sourdough this year include a high protein loaf and a range of premium toasties and hot rolls. It also captured the inaugural Bakery Brand of the Year title at the Baking Industry Awards 2024 in October.
Signature Flatbreads rolls out £150m investment plan
The Dunstable-based manufacturer marked its 40th anniversary in September by unveiling plans to invest £150m to further increase capacity and expand its product range. More than 500 jobs are expected to be created as a result.
The investment follows directly on from the completion of its five-year, £100m investment programme, which has enhanced production and improved wellbeing facilities for its 2,000-plus workforce at its 500,000 sq ft site in Chiltern Park Industrial Estate. Turnover surpassed the £200m mark last year.
Signature Flatbreads supplies a wide range of own-label bakery goods including flatbreads, wraps, pittas, pancakes, crumpets and more to customers in retail, QSR, and foodservice channels. It also owns and produces the Deli Kitchen branded range, which added new Lebanese Style Flatbread; Protein Pancakes, Wraps, and Folded Flatbreads; and Everything Wraps during 2024.
Sourdough Sophia crafts crowdfunding success
The power of cultivating a strong online following was well demonstrated by Sourdough Sophia in the summer as it raised £500k from a crowdfunding campaign conducted via its mailing list, website, and socials. This will be used to increase its shop estate in London from two to five by the end of 2025.
“We are absolutely delighted with the support we have received from our existing investors and loyal customers in helping us reach our funding target so that we can move to our next step of growth of Sourdough Sophia,” commented founder Sophia Handschuh, who set up the brand with her partner Jesse Sutton-Jones from their dining room in 2020.
The craft bakery business had previously raised £500k to assist the opening of a new 2,400 sq ft production site and café on Essex Road in Islington back in April. Its now targeting to more than triple turnover to £6m by 2026, with a long-term ambition of 10 sites and a £20m valuation.
Tiffin Sandwiches gets on the go with new site
A new 50,000 sq ft factory for the food-to-go supplier, at an estimated cost of between £8m and £10m, is set to create 400 new jobs for the local community in Bradford.
Land has already been purchased for £2.5m and is located next to Tiffin’s existing site on Commondale Way, near the M606, with around £5m earmarked for new equipment purchases. Construction is expected to be completed by the end of this year, with a further 12 to 18 months needed to get it fully up to speed.
The company also runs a facility in Chester, with all three production sites to remain in operation to support new business wins across healthcare, education, and travel sectors. Its range includes filled sandwiches, wraps, ciabatas, and paninis, as well as toasties, Croque Monsieurs, pies, pasties, pizza twists, cake slices, flapjacks, and tiffin, with some vegan and gluten-free options – bakery elements are provided by third party suppliers.
Urban Legend gets a hole load of investments
The healthier doughnut brand enjoyed a doubly impressive year of funding in 2024. In March, it raised £3m in an investment round led by Samworth Brothers’ venture capital arm Perfect Redd, and then saw Mondelēz International’s SnackFutures Ventures take a minority stake in October.
Urban Legend uses patented air frying technology to reduce the sugar, fat, and calories of its doughnuts by between 30% and 75% compared to deep-fried alternatives. It also makes sweet pastries, with all varieties – including those with creamy fillings, icings, and frostings – coming in at 200 calories or less.
“Our partnership with Perfect Redd represents a joint success towards the goal of pioneering innovative solutions to tackling obesity and improving the nation’s health,” said Urban Legend founder and CEO Anthony Fletcher. “A partner like Mondelēz provides enormous opportunity to scale that possibility throughout Europe and the world,” he added.
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