Renshaw owner Real Good Food sets sights on US cake decorating market

The company has formed Renshaw US Inc - which will trade as Renshaw Americas – to drive exports of products including sugar paste, coverings and frostings, and the Rainbow Dust Colours range.

Renshaw Americas has secured a five-year lease on a 18,750 sq ft warehousing facility in Rockaway, New Jersey, which the company said it had chosen for its good location for onward distribution and close proximity to the port of Newark.

A commercial team of four will initially be employed, and will act as a sales and distribution hub. The business will start by focusing on the US and Canada but hopes to eventually expand across the rest of the Americas.

The US and Canada already account for around a tenth of the company’s overall export business, said Real Good Food executive chairman Pieter Totté.

Scope for improved margins

“By establishing a permanent presence we believe there is scope for future growth and improved margins with operating efficiencies and better supply chain management​.

“We can now ship in bulk quantity directly to a storage and distribution facility in an optimal location for onward distribution​,” he added. “This leads to manufacturing efficiencies in our factories in the UK and ultimately better customer service and improved margins​."

Totté also said the move would enable the business to broaden its customer base.

Underdeveloped US market

"In particular, we are excited about the growth opportunity for sugar paste, as opposed to soft icing, as this market is largely underdeveloped across the Americas​."

Real Good Food also announced it has rebranded its Real Good Food Europe division as Renshaw Europe to reflect the business's focus on cake decoration products.

Based in Brussels, Renshaw Europe is a sales and marketing, distribution, and logistics centre for products including the Renshaw range and Rainbow Dust Colours. The division also plans to offer products tailored to local requirements.

"Understanding the markets in which we operate and meeting customer requirements with quality products and excellent service is a key driver for our future development​,” said  Totté. “The rebranding is a manifestation of our intention to grow the Renshaw brand internationally​."

The Real Good Food Company

UK-based bakery and ingredients Real Good Food comprises three divisions:

Cake Decorating​

• Revenue 2015/16: £48.3m ($63m)
• EBITDA: £7.3m ($9.5m)

This division produces two brands: the Renshaw range that includes sugarpaste, marzipan, soft icings, mallows and caramels and is sold into mainstream and specialist retail, wholesale, foodservice and food manufacturing; and the Rainbow Dust Colours range of edible glitters, dusts, powders and food paints, brushes and pens for the specialist sugarcraft sector.

Food Ingredients​

• Revenue 2015/16: £22.7m ($29.5m)
• EBITDA: -£0.1m (-$0.1m)

This division comprises two businesses: R&W Scott, which manufactures chocolate coatings, sauces, jams and dry powder blends for industrial, retail, wholesale and foodservice markets; and Garrett Ingredients, which sources dairy, sugar and other specialist ingredients from across the UK and Europe and sells them to food manufacturers across the UK.

Premium Bakery​

• Revenue 2015/16: £29.4m ($38.1m)
• EBITDA: £0.7m ($0.9m)

This division comprises two businesses: Haydens, which supplies ambient and frozen products including tarts, pies and crumbles, Danish, sweet buns, yum yums and doughnuts and sells to retail customers and through foodservice channels; and Chantilly, which manufactures frozen desserts and sells them to pubs and restaurants.