Real Good Food Group, which this month sold Haydens Bakery, says rationalisation and new funding are enabling it to support investment in other parts of its business, such as Brighter Foods.
The company said it was “delighted” to have supported the recent acquisition of a factory in Tywyn, Gwynedd, by the Brighter Foods snack bar business.
In April last year, Real Good Food (RGF) acquired a majority share in Brighter, which develops own-label brand snack bars in the health, sport, free-from and slimming sectors and produces its own Wild Trail brand.
Shortly after buying into Brighter Foods, RGF was hit by a string of difficulties, including the exit of founder and executive chairman Pieter Totté, and the announcement it would be improving its corporate governance and reporting after admitting standards had been below those investors “might reasonably expect”.
RGF has also issued a series of profit warnings since then, and bosses have looked to turn the business around by raising funding and selling off parts including Garrett Ingredients and Haydens Bakery. RGF still owns cake decorating business Renshaw, Chantilly Patisserie and Brighter Foods.
Founded less than five years ago by CEO Robin Williams, Brighter employs more than 150 people and turns over around £20m a year.
Brighter last week announced it was purchasing and refurbishing a former Halo Foods factory that closed in 2013. This will give the firm three production lines in Tywyn and expand the workforce to 200 over the next 12 months
Brighter said the move was designed to meet growing demand from existing customers and to service new customers attracted to the company’s “growing reputation for innovation, outstanding quality and customer service”.
It also said the acquisition was part of a strategy to de-risk Brexit by manufacturing products for the UK market in the UK.
“When we launched Brighter Foods, we refurbished an old warehouse with what we could afford, but always had dreams for an additional new-build as we grew,” said Williams. “But to be able to breathe new life into the old Halo factory is fantastic.”
Real Good Foods chief executive Hugh Cawley told British Baker that RGF was “delighted to support further investment in the continuing success of Brighter Foods”.
“Real Good Food Group’s recent and continuing rationalisation, and the redemption of all bank term debt, now allows us to concentrate resources where they have the greatest positive impact,” he added.