Yorkshire-based manufacturer Regal Food Products Group is extending its chilled desserts offer after acquiring Love Cheesecakes.
The deal, made for an undisclosed fee, will see production shifted this week from Thornton-Cleveleys near Blackpool in Lancashire to Regal’s site in Leeds – home of Love Handmade Cakes, which was purchased at the start of this year.
Love Cheesecakes creates a range of sweet canapé-style, single-serve handcrafted cheesecakes in 100 different flavours including Retro Lemon & Lime, Milk & White Chocolate, Caramel & Toffee, and Raspberry & White Chocolate. A gluten-free option is also available.
The business is mainly built around its ecommerce platforms including its own website as well as on Amazon and Yumbles, and through attending an extensive list of outdoor events and food festivals. It is also supplies a pool of foodservice outlets such as cafes and restaurants, which Regal confirmed was a priority to grow and develop.
Artisan baker James Asquith, who has managed and operated Love Cheesecakes since founding it in 2012, is to continue working with the Regal team and support the transition of assets including IP, processes, and equipment. At its peak it employed five workers, with five new jobs expected to be created in Leeds as Regal looks to scale up the brand.
“The acquisition of Love Cheesecakes will further strengthen our chilled desserts portfolio allowing us to give customers a solid offer across all ranges and price points,” commented Regal CEO Younis Chaudhry.
Regal has owned chilled dessert brand Just Desserts Yorkshire since 2022, supplying the foodservice sector with tarts, cheesecakes, and gateaux from its factory in Shipley.
The group also creates a wide range of sweet bakery products under its Regal Bakery, Yorkshire Baking Company, and The Cake Emporium brands produced at its main factory in Bradford. These are sold at more than 3,000 retail outlets across the UK as well as being exported to more than 50 countries worldwide.
Chaudry noted that with a catalogue of over 100 products, Love Cheesecakes offered plenty of NPD opportunities and gave Regal “the platform to bring a whole new range of exciting flavours and combinations to customers old and new”.
“As a group we have the resources and infrastructure in place to bring Love Cheesecakes in line with our vision and family of dessert brands and look forward to integrating the bakery and its assets,” he added.
To support its contiued expansion ambitions, Regal bought a 45,000 sq ft warehouse space in Bradford last month. Its acquired its first non-food and drink business, Packaging ‘R’ Us, last August.
The group currently operates six sites across Yorkshire, which collectively employ over 300 staff members. Most recent full-year accounts to 31 March 2023 reported turnover of £31.8m, a leap of more than a third from the £23.3m posted in FY22. However, operating margin fell from 4% to 3.3% due to inflationary pressure on input costs.
Dragons denied
Love Cheesecakes founder Asquith previously appeared on TV show Dragons’ Den in March 2020 to pitch an investment of £70,000 in return for a 33% stake, with all five venture capitalists declining the opportunity.
The company claims it had since developed a strong online presence through its ecommerce platforms, including a focus on gifting with its service allowing customers to indulge in doorstep desserts at home.
“This acquisition marks an exciting new chapter for the Love Cheesecakes, promising tremendous growth and innovation,” said Asquith. “I am confident that Regal Food Products Group’s expertise and resources will take the bakery to new heights, reaching even more customers and continuing to deliver the quality and values we as a business stand for.”
Alex Kenworthy, partner at Mills & Reeve LLP which advised on the transaction, called Regal a “real gem” in the Yorkshire food sector. “You only have to follow them on social media to see the passion, pride and enthusiasm they have for their brands,” he added.
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