Thursday, June 6, 2013

News: Maple Leaf to expand Rotherham bagel facility

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Already the largest manufacturer of bagels in Europe, Maple Leaf Foods has announced that it will invest £11.5m in a new production line to extend the existing Rotherham factory in the latter part of 2013.

Based at Swinton, the facility produces 6-7 million bagels per week for several companies including the New York Bakery Co. The Canadian parent company made the announcement in response to the unprecedented success of the 2013 New York Bakery Co. bagel re-launch - which has seen sales increase by 30 per cent in Q1 with expected strong growth still to come.

Bagels are one of the top five value contributors to the Morning Goods category this year, with the New York Bakery Co. brand adding over £3m in incremental sales to the category since re-launch in January 2013.

The significant capital investment of £11.5m in a new production line will extend the existing Rotherham factory in the latter part of 2013, increasing capacity at this state of the art bakery and securing jobs in the area for the long term. When complete this will be the largest bagel factory in Europe and one of the largest globally.

This year, New York Bakery Co. has sold over 200 million bagels - including the new premium range of Red Onion & Chive, Fruit & Oat and the limited edition Blueberry variety, along with classic favourites Cinnamon & Raisin and Plain. The company began pre-slicing plain bagels earlier this year.

Cliff Irwin, managing director at Maple Leaf Bakery UK (owners of the New York Bakery Co), said: "Our strong performance is the product of the market's growing demand for bagels, the quality and authenticity of our product and our carefully planned relaunch earlier this year. We are excited about increasing our sales in the UK market and are confident in our expansion plans.

"The significant backing by Maple Leaf Foods will enable us to move forward with ambitious expansion plans in the next five to ten years. As a result we can now increase our capacity at our Rotherham site to meet growing consumer demand and support our growth aspirations as the market leader in speciality bagels."

Maple Leaf did employ approximately 1,200 people in the United Kingdom but closed its Walsall facility last year and recently sold its London based Italian breads division. The growing Rotherham facility has an estimated production capacity of 70,000 bagels every hour and the company has expanded the Swinton Meadows site three times, the previous investment was in 2008 with £4m to expand its frozen bagel capacity.

A £11.5m infrastructural investment and £3m communications spend from owners, Maple Leaf Bakery UK Ltd was announced in 2011.

New York Bakery Co. website

Images: New York Bakery Co.

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