Nomad Foods is ramping up its investment in the UK’s potato-waffle manufacturing sector to address the rising demand for “great-value” frozen products.
The owner of the Birds Eye brand has allocated £2.2 million ($3 million) toward establishing a new production line at its Lowestoft site in Eastern England. This investment reflects a strategic move in the competitive food and beverage industry, particularly as consumer preferences shift toward reliable and affordable frozen options.
“Consumers navigate ongoing cost-of-living pressures, and we are seeing sustained demand for trusted, great-value, tasty frozen favorites that can be used across a variety of meals. This investment ensures we can continue to meet that demand whilst supporting good food choices for families,” stated Eduardo Bachiega, Nomad’s chief supply officer.
With this facility, the production capacity will increase to 18,250 tonnes, equating to approximately 45 million potato waffles annually. This expansion is crucial, particularly for fulfilling the needs of customers throughout the UK and Ireland.
In a broader context, Nomad outlined a goal of achieving €200 million ($233.1 million) in operational savings during its financial planning for 2026 to 2028. This is expected to occur through enhanced efficiencies in procurement, logistics, and overheads, positioning the company favorably within the food and drink business landscape.
The anticipated savings will allow Nomad to make targeted reinvestments while mitigating inflationary pressures. In April, the company indicated plans to shut down its Rorschach plant in Switzerland by the end of this year as part of its strategic adjustments.
In terms of performance, Nomad reported a downturn in sales and earnings for 2025. Sales revenue decreased by 2.2% to €3.03 billion ($3.54 billion), with organic sales falling 1.9% and volumes declining by 1.4%. Concurrently, operating profit decreased from €387 million in 2024 to €325.4 million, while net profit dropped from €136.7 million to €227.1 million.
For 2026, Nomad anticipates a decrease in organic revenue between 2-5% and an adjusted EBITDA decline of 5-10%. Just last month, the company reported a 5.9% decline in first-quarter revenues, totaling €715 million, with organic revenue falling by 5.3%.
In summary, Nomad Foods is taking strategic steps to strengthen its position in the food and drink consumer trends market by enhancing production capabilities and implementing cost-efficiency measures. These actions will be key to navigating the challenges ahead while maintaining a focus on delivering value to its consumers.
