Suppliers face tough times

By Hayley Brown

- Last updated on GMT

Related tags Real good food Good food company Value added Bakery

Suppliers face tough times
In "preparation for the challenging economic outlook for 2009", The Real Good Food Company (RGFC) is streamlining its business by consolidating its...

In "preparation for the challenging economic outlook for 2009", The Real Good Food Company (RGFC) is streamlining its business by consolidating its two ingredients firms - Renshaw and Napier Brown Foods.

The consolidation will form Renshawnapier, one of the largest independent non-refining distributors of sugar in the UK and supplier of raw and value added ingredients - including marzipans, baking chocolate and jam.

After undertaking a strategic review of its current operations, RGFC, took the decision to consolidate the Renshaw and Napier Brown Foods businesses into one unit. This has seen the closure of the London office at St Katherine's Way, with Renshawnapier based at RGFC's headquarters in Liverpool.

The announcement comes after the parent company released a trading update, in which Stephen Heslop, chief executive of RGFC, claimed that revenues in its sugar division had suffered from reduced sales to its customers in the industrial sector. He consequently expected revenues to be 7-9% behind last year.

Within Renshaw, its bakery ingredients division, the trend towards increased home baking has aided sales into retailers, off-setting reducing volumes to the manufacturing sector, said Heslop.

According to Renshawnapier, its strategic focus will be to: "Build and drive value from a broader portfolio of both raw and value added ingredients, managed by one single management team."

Heslop said that, at the moment, it was a competitive marketplace which "only looks to be getting tougher". As a result, RGFC is: "Preparing to make the most of all opportunities that arise. This is a natural consolidation, while streamlining of the business units hosts benefits for both current and new customers, plus our internal teams."

The third arm of the RGFC business, Haydens Bakeries, will continue to be managed as a separate standalone business unit. It produces chilled and ambient patisserie and dessert products for supply to retail grocery customers.

"The economic outlook for 2009 remains uncertain and competitive pricing is expected to continue," said Heslop. "However, we have already seen a recovery in industrial sugar margins in the last quarter of 2008 and expect them to continue throughout 2009."

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