Enterprise Foods says it is set to create a £100 million turnover local supply network, sourcing craft bread on behalf of retail and foodservice giants.
The Scottish company is working with the UK’s number one convenience retailer and a foodservice supplier, believed to be Compass, on the new business. It turned over £23m in 2006, MD John McCormick told British Baker.
He commented: "The sad thing is that if you look into the bakery market, the craft side is declining, because product is not being presented properly. We can present the craft baker as a solution, not just a difficult animal to deal with."
The East Kilbride-based company acts as a third party, he explained, putting requests from its big customers through to the most appropriate craft baker in the local area. It uses electronic systems to invoice on the bakers’ behalf.
The company has now technically appraised 200 craft bakers from all around the UK, to create a register of craft bakers suitable to supply big operators.
McCormick said: "Bakery is a small part of the big customers’ overall spend, but it tends to be difficult to deal with; you end up with hundreds of different suppliers around the UK. With this system, we manage fresh bakery products for them, putting them in touch with local suppliers of genuine craft bread."
Enterprise formerly owned bakery businesses California Cake Company and Campbell’s Cake Company but sold to Finsbury Food Group in 2005. The company also sold off its Patisserie UK division, in a management buyout last year, to focus on the supply chain business.
Enterprise’ sales were £27 million for the year to 1 July, 2006, with pre-tax profits at £270,000.