Finsbury tackles healthy bakery market

By Catherine Boal

- Last updated on GMT

Related tags Bread Baking Cake

A year of acquisition and investment has proved profitable for UK
bakery company Finsbury Foods but now the group plans to further
build sales by targeting the growing health sector.

According to the company's financial report released today, the past year has seen Finsbury take over three major companies and experience a 24 per cent increase in turnover from £59.3m (€87.9m) to £73.3m (€108.7m).

In the report, the company highlighted its efforts to compete in a healthier bakery market by removing hydrogenated fats from all ranges as well as cutting back on the use of artificial flavourings and colourants.

Building on this, Finsbury plan to expand gluten-free production, develop its organic sector and produce a greater range of low-fat cakes.

Chief executive Dave Brooks said: "The UK consumer is quite sophisticated and also very demanding. So it's not just about cutting out fats and reducing calorie intake but more about achieving a balance.

"Consumers are becoming more health conscious but do still want to treat themselves."

As well as the low-fat sector, Finsbury are keen to make inroads into the gluten-free market through the recently-acquired subsidiary United Central Bakeries (UCB).

Figures from market researchers Mintel show the gluten-free market is worth £49m (€72.7m) per year and is expected to double by 2010.

To strengthen its position in the growing sector, Finsbury has invested £0.3m (€0.4m) in separating gluten-free production from the rest of its facilities and plans to expand the range.

In November, Finsbury, who saw operating profits increase by 75 per cent to £2.8m (€4.15m) this year, substantially increased its market share with the acquisition of the California Cake Company, Campbells Cake and UCB.

Already in the company's portfolio were its largest subsidiary Memory Lane Cakes, who supply major retailers such as Tesco with luxury cakes and had sales of £50.5m (€74.9m) this year, and bread makers Nicholas & Harris.

UK bread and cake markets are together worth over £4.5bn (€6.7m). According to Mintel, the ambient cake market sees 3 per cent growth per year and is currently worth £1.47bn (€2.2bn) with particular growth in the premium goods sector.

Related topics Ingredients Health

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