Panelto Foods is making a substantial investment of €7m ($8.2m) to install an additional bread production line at its operational facility in Longford, Ireland.
Since being acquired by the private-label group European Bakery in 2023, this bake-off manufacturer aims to address evolving consumer demands with its new line, which will focus on “next-generation speciality” breads that reflect current retail trends.
A spokesperson for Panelto Foods stated: “The in-store bakery category is one of the top three categories for quality perception as shoppers seek greater choice and innovation, including premiumisation.”
They further explained, “Retailers see in-store bakery as a beacon of quality, which has increased the demand and expectation for new product development (NPD) and innovation.”
The company emphasizes that their breads are crafted using basic ingredients such as flour, yeast, and water, occasionally incorporating seeds, grains, and cheese. When the new line begins production in July, the factory will operate three bakery lines.
CEO Garry Walsh remarked: “Our insights and R&D team never stand still. We have invested heavily in understanding consumer and retail trends, which enhances our R&D capabilities. Ultimately, you cannot execute innovation without a great team.”
This latest investment raises total capital expenditure on facilities and equipment to €40m since 2018.
Panelto Foods primarily produces private-label bread for prominent retailers in the UK and Ireland, alongside the foodservice sector. The spokesperson clarified: “This phase of investment will enhance capability, not grow capacity. Following phase one, capacity enhancement may be part of a second phase of investment.”
Currently, 370 employees work at the Longford facility, which houses a bakery, a research and development center, and a training hub. The spokesperson noted that no new jobs will result from this investment.
The statement included a supportive comment from Jenny Melia, CEO of government agency Enterprise Ireland. However, the Panelto Foods spokesperson refrained from confirming any direct participation in the recent investment, mentioning instead: “Panelto has availed of Enterprise Ireland funding supports through various grant schemes over the last number of years and is very grateful for their continued support.”
Melia stated: “Enterprise Ireland is proud to support Panelto Foods on its journey. We look forward to working closely with Garry and the team as they continue to innovate and deliver world-class bakery solutions to customers at home and abroad.”
In 2023, Panelto Foods became part of the newly established European Bakery Group, headquartered in Tilburg, Netherlands.
This group was formed from the merger of Netherlands-based Dutch Bakery and Germany’s Coolback.
Notably, Dutch Bakery had been majority owned by UK private-equity and venture-capital firm 3i Group since 2021, which is now the owner of European Bakery.
Peter Burke, Ireland’s Minister for Enterprise, Tourism, and Employment, expressed in the statement: “This investment not only enhances the company’s capabilities but also reinforces its role as a key employer and contributor to the local economy in Longford. Management and staff should be extremely proud of the community they have built.”
