New York Bakery Co has secured an £11.5m investment package from parent company Maple Leaf Bakery UK to expand the business, following increasing bagel sales.
Its existing Rotherham factory will be extended to increase capacity, which will see it become the largest bagel factory in Europe, according to the firm.
The announcement comes only a week after Maple Leaf revealed it would be closing its Walsall site, which manufactures sliced bread, to concentrate on the growth of its speciality bread product brands, such as New York Bakery Co.
Following a 66% increase in sales since the relaunch New York Bakery Co’s bagel range in January, the firm is to invest £11.5m in the infrastructure of the business, and has also been allocated a £3m communications budget.
The firm said its UK expansion plans will further strengthen the brand’s category leadership; it already holds a 76% market share.
According New York Bakery Co, its bagel relaunch was the biggest value contributor to the morning goods category this year, adding over £8m in incremental sales since the beginning of this year (Nielsen Scantrack Value Sales Ytd 09/07/11).
Simon Foster, VP marketing of Maple Leaf Bakery UK, said: “The significant backing by Maple Leaf will enable us to move forward with our ambitious expansion plans in the next five to 10 years. As a result we can now increase our capacity at our Rotherham site to meet growing consumer demand and support our growth aspirations as the market leader in speciality bagels.”