Promise Gluten Free, an Ireland-based bakery business, is focusing its expansion efforts on the US market this year and next. The company, which is fully owned by Mayfair Equity Partners, is aiming to exceed €60m ($65.1m) in sales. In addition to the US, Promise Gluten Free is also eyeing opportunities in Sweden, other Nordic countries, and Spain.
The Ireland, UK, and Canada markets are currently the core markets for Promise Gluten Free, with a 42% CAGR since the business was re-energized five years ago. Under the leadership of CEO Patrick O’Sullivan, the company has shifted its focus to a branded business model, exiting private label and foodservice to emphasize the Promise Gluten Free bakery brand and the Gallaghers Bakehouse conventional sourdough line.
O’Sullivan shared, “The most exciting future move for us is the US. We’re in year five of Promise and our growth is going to continue strongly,” adding that both core brands are each expected to grow sales by over 30% in 2024.
While serving the discounters in the UK, Promise Gluten Free is looking to the US to further drive branded growth. The company’s second manufacturing facility in Scranton, Pennsylvania, will start producing the “core” bakery lines in the second half of this year to serve as the manufacturing “hub” for North America.
O’Sullivan emphasized the potential within the US market, stating, “We have tested our fresh, gluten-free bakery model in Canada. The US market is a frozen gluten-free market and the velocities are a fraction of what we sell in Canada. If we could replicate 50% in the US, we would have huge success.”
Furthermore, O’Sullivan expressed the company’s interest in “seeding” potential markets like Sweden, the Nordics, and Spain this year. Additionally, the company is targeting other UK retailers and sees strategic value in engaging with discounters such as Aldi and Lidl.
O’Sullivan noted that there is a growing demand for gluten-free options not only from coeliacs and people with intolerances but also from those seeking a healthier alternative. He explained, “We’re in less markets now than we were in 2018. When I joined, we were selling some earlier versions of gluten-free with Woolworths in Australia and on the west coast of the States. I stopped all of that because we were starting something new, we were building brands, and we were going to build a sustainable business model.”
The company aims to continue its focus on building a better, robust business in order to ensure sustainable growth. Additionally, Promise Gluten Free has been responsible for significant category growth in Ireland and Canada and is eager to replicate similar success in the US.
