Bakery news in brief

By Catherine Boal

- Last updated on GMT

Related tags: Netherlands, Advertising

UK bakery and snack chain Greggs is investing in new facilities on
the back of a recently-launched national marketing campaign
designed to further the company's market position.

The high street bakery firm announced it will build a 75,000 sq foot bakery in Manchester, creating 300 jobs and spurring growth at the company. Work is expected to begin on the site in autumn. Greggs, whose profits dropped by 20 per cent last year, launched a £3 billion advertising campaign recently to reinvigorate the brand. The marketing is expected to focus on the company's healthier options range in order to tempt health-conscious consumers and deflect from the brand's image as a fast-food style snacking choice. And as Greggs creates jobs, competitor British Bakeries, which owns the Hovis bread brand, is due to cut them at its factory in Plymouth. According to local press, the RHM-owned firm will be reducing the facility's workforce by 79 employees in a move to sideline production. Only one of the three manufacturing plants at the site now remains operational. British Bakeries also produce the dietary bread brand Nimble and claim to supply around a third of the country's daily bread. Elsewhere in Europe, two snack companies from the Netherlands are joining forces in a move that will further consolidate the country's snacking sector. Royal Wessanen and Rabo Capital will form a new group to incorporate their individual halal snacks, rolls, burgers and frozen product lines. Under the terms of the agreement, all production will be moved from sites in Tilburg to Deurne and the Beckers brand label will remain with Wessanen. The Beckers branded traditional Dutch snacks are the second largest deep frozen retail snack brand in the Netherlands. Wessanen is due to control the larger share in the company with 60 per cent of the shares while Rabo Capital will hold 39.4 per cent. In a statement, Wessanen general manager Henk Spoon said: "Wessanen is benefiting from the synergies that consolidated production in this mature market will deliver. Simultaneously it allows Wessanen to focus on its declared strategy of building brands like Beckers."

Related topics: Ingredients

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