Real Good Food expands to exploit bakery niche

By Oliver Nieburg

- Last updated on GMT

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A leading UK bakery, sugar and ingredients company is set to open a new factory this month to develop a larger range of artisan bakery goods which were identified as the source of strong first half performances in 2010.

Real Good Food chairman Pieter Totté told that producing unique high-skilled products such as toffee pecan danishes and tarts which utilise fresh fruits has led to strong trading from the company’s bakery businesses. "Not many bakeries in the UK can do this," ​he said.

Specialist products

Hayden, the firm's bakery products business, boasts Waitrose as its largest customer and it produces specialist products using hand finishing skills and laminated yeasted dough products.

40 new bakery products were created last autumn and a new 55,000 sq.ft site to be located next to the Real Good Food's Hayden plant in Devizes, Wiltshire will provide a platform to build upon the firm's product development model, said the chairman. Totté believed strong product development was the driving force behind Real Good Food's successes.

Other enterprises

The company said its bakery ingredients business, Renshaws, also saw growth in volumes and profitability which exceeded expectations following strong exports to the US and increased domestic sales to the home baking and sugar craft sector.

The firm said its Napier sugar business was "in a transitional year following the EU sugar reforms."​ Changes in EU legislation caused the reference price of sugar to fall 34 per cent having a net affect on production, according to Totté. "This is a seasonal business and the first half is normally the lowest trading period of the year,"​ he added.

The chairman said further new product launches which will contribute to sustainable growth of the business and a strong second-half performance.

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