CSM strengthens in-store and out-of-home position with Cook Man acquisition
The deal includes Cookie Man’s equipment and factory in Esher, Surrey.
The firm fell into administration last week and made 25 employees redundant, but was saved after administrators ReSolve Partners LLP found a buyer in CSM.
Developed in-store market
Eva Linder, director of corporate communications at CSM, told BakeryAndSnacks.com that the transaction was in keeping with the company’s strategy
“We have seen a shift between the bakery shops in the streets to in-store and out-of-home bakery,” she said.
In-store bakery refers to bakeries within supermarkets while out-of home bakeries are those in the catering sector.
According to Linder, though in-store and out-of-home is a trend throughout Europe, the UK market is more developed.
“The UK market is a step ahead of the European market,” she said, adding that the Cookie Man acquisition would support CSM’s position in this area.
CSM already has similar operations in the UK. It also owns Sussex-based business Kate’s Cakes and has its own operations in the UK market with bread, doughnut, cake and muffin lines at its production facilities in Wirral, Manchester and Bradford.
Linder said that CSM also has a presence in in-store and out-of-home in continental Europe.
She indicated that the company saw future opportunities for growth in these markets in Europe, including through further acquisitions.
Cookie Man’s product range includes cup, fairy and loaf cakes, mini-bites, cake slices, muffins and cookies
The firm has 340 employees, which will be integrated into CSM.
Cookie Man experienced 44% slump in its gross profit in 2010 compared to the previous year, from £4.2m (€5m) to £2.4m (€2.8m).
After taxation, this translated as a £437,591 (€522 669) loss, following profit of just over £300,000 (€358 327) in the previous year.