Sales at Maple Leaf Bakery UK have held up against falling volumes at its North American sister companies, according to parent company Canada Bread’s latest trading statement. However, plans are in place to close its Cumbrian bakery.
Canada-based Canada Bread said sales in its UK operation - Maple Leaf Bakery - were on a par with its performance for the same period (quarter four) in 2009/10.
However, in February last year, Canada Bread reported falling volumes at Maple Leaf Bakery due to consumers trading down from premium to staple products and less promotional activity during the year compared with 2008/09.
The latest financial statement announced that the management at Maple Leaf was proceeding with initiatives to reduce costs and consolidate volumes into fewer bakeries, including the planned to closure of its bakery site in Workington, Cumbria.
The first quarter of 2011 saw significant promotion of the firm’s bagel brand, New York Bakery Co, in the UK, which was relaunched with a new recipe, packaging and ad campaign.
Canada Bread’s bakery division - fresh and frozen - saw total sales in its bakery arm decline 9% to $393.3 million (£244.4m), in the fourth quarter.
Canada Bread Company is 90% owned by Canadian-based Maple Leaf Foods Inc.