Real Good Food has confirmed that it has created a new 100% wholly-owned subsidiary business in the US, under the name Renshaw US Inc.

Following the news which broke exclusively in British Baker last week, the company has said the new business will trade as Renshaw Americas and will concentrate on further growing its cake decorating export business across the continent.

As reported by British Baker, Renshaw Americas has secured a five-year lease on an 18,750sq ft warehousing facility in Rockaway, New Jersey, chosen as an ideal logistical location for onward distribution and its proximity to the port of Newark.

Initially Renshaw Americas will initially employ a commercial team of four and will act as a sales and distribution hub to sell cake decorating products from the Real Good Food stable, initially across the US and Canada and eventually on a broader scale across the rest of the Americas.

Products will include sugar paste, coverings and frostings from Renshaw in the UK and the full range of Rainbow Dust Colour products.

Pieter Totté, executive chairman of Real Good Foods, said: “The USA and Canada are very important markets for our cake decorating business. It already accounts for around 10% of our overall export sales and, by establishing a permanent presence, we believe there is scope for future growth and improved margins, with operating efficiencies and better supply management.

“We can now ship in bulk quantity directly to a storage and distribution facility in an optimal location for onward distribution. This leads to manufacturing efficiencies in our factories in the UK and, ultimately, better customer service and improved margins.

“With an established presence, we also see the opportunity to broaden our customer base and, in particular, we are excited about the growth opportunity for sugar paste, as opposed to soft icing, as this market is largely underdeveloped across the Americas.”

In a separated move, Real Good Food has also rebranded its Real Good Food Europe division as Renshaw Europe to reflect the business’ focus on cake decoration products. Renshaw Europe is based in Brussels and acts as a sales and marketing, distribution and logistics centre for a range of products across Europe.