Premier Foods is investing £36m ($47.3m) in a UK factory to enhance production capabilities for the Loyd Grossman brand of cooking sauces.
The London-listed UK food major, which also owns The Spice Tailor and Mr Kipling product lines, announced that manufacturing of Loyd Grossman sauces has traditionally been handled by a third party.
Now, it is transitioning production in-house at the company’s facility in Worksop, Nottinghamshire, with plans set to commence in early 2028.
This investment will roll out in phases through 2029, according to Premier Foods’ statement released today (18 November).
“This will secure the long-term supply of the brand and aligns with a key pillar of Premier Foods’ growth strategy, focusing on investing in supply chain capabilities to enhance both efficiency and productivity,” the company added.
Additionally, Premier Foods has extended its brand licensing agreement with TV celebrity Sir Loyd Grossman. This agreement, initiated in 1995, will now run until 2034, with the possibility of an additional five years.
The cooking sauce brand has experienced an average annual growth rate of 4.7% over the last five years, as stated by the company.
CEO Alex Whitehouse highlighted that this investment represents the largest allocation by Premier Foods in the past 15 years. The Worksop plant employs approximately 500 staff and also produces the Sharwood’s and Homepride lines, along with Batchelors, Bisto, Saxa, and Oxo products.
“This expansion will enable us to more than double our annual cooking sauces production capacity, creating growth opportunities and enhancing innovation capabilities across our cooking sauces brands while improving the site for our colleagues,” Whitehouse stated.
In September, Premier Foods also revealed a £19m investment at its Lifton site in Devon to boost Ambrosia dessert production.
Premier Foods indicated that this investment is in direct response to increasing consumer demand and aims to enhance efficiency across its operations.
Furthermore, in August, the company announced the acquisition of Merchant Gourmet, a UK-based manufacturer specializing in ready-to-eat products. This acquisition came at a cost of £48m.
In other news, Premier Foods reported its first-half results last week. The group revenue saw a rise of 0.7%, reaching £502.5m for the period ending 27 September. Branded revenue also increased by 1.9%, totaling £453m over the previous six-month period.
Trading profit grew marginally, up 0.4% to £70.5m.
Statutory profit after tax surged by 18.5% to £46.8m, with basic earnings per share climbing 17.4% to 5.4 pence.
According to Premier Foods, the Worksop investment will feature the installation of a “high-speed” manufacturing line, enhancements to storage facilities, and the addition of a new link road to the plant.
