Gü to go on national TV

Noble Foods will invest significantly in TV advertising for Gü - the upmarket desserts and snacks firm it has just acquired - to increase the brand’s penetration in the Midlands and the North.

It will also develop several new products and redouble efforts to boost sales in France. But Gü's structure, manufacturing footprint and staffing arrangements will remain much the same.

Speaking to Food Manufacture​ last week after acquiring a controlling stake in Gü, Noble Foods chief executive Peter Thornton said: “We’re planning regional TV ads in the spring and national TV later in the year.”

While Gü had already secured listings with all the UK supermarkets, there was significant potential to widen the range stocked, and the number of stores carrying Gü products, said Thornton. “About 75% of sales are in Waitrose, Sainsbury, Tesco - and there is southern bias, so there are obvious opportunities to increase our coverage in Asda and Morrisons.”
Noble’s support would also help Gü founder James Averdieck, who will continue to run the business (and retain a financial stake in it), build export sales, especially in France, said Thornton.
More new products are also in the pipeline. While the focus will remain on chilled desserts and bakery, Averdieck has also been exploring new launches in confectionery, indulgent hot chocolate drinks and milkshakes.
While Gü’s first foray into frozen foods with ice cream and a chocolate bombe had not been a success, this would “not put us off” venturing into other new product areas, said Thornton.
There were no plans to consolidate production of all Gü products at Noble Foods’ desserts factory in Llantrisant, he added. “This site will continue to produce some Gü lines - which we have already been doing for some time under contract. But most Gü products will continue to be produced at the Rensow Patisserie factory in London.”
Noble Foods axed its Serious Desserts brand last April, but had since picked up “significant retailer brand business”, said Thornton. “We’re seeing a lot more interest from the supermarkets in premium own-label. We’ve also been in talks with Gü for some time, which was one factor in our decision to phase out the Serious Desserts brand. It didn’t make sense to have two premium brands.”
Andrew Lord, who runs Noble’s desserts business at Llantrisant, said: “There was a period of time where premium took a nosedive, but it was short-lived.”
He rejected the claim that Gü was overly reliant on promotions compared to other products in the sector, adding: “Premium desserts are a heavily promoted area of the supermarket, even in own-label; 45% of sales are on deal.”
Now a £25M brand, Gü was launched from scratch in 2003 by James Averdieck, a former marketer and management consultant. Averdieck quickly achieved listings in all the major UK supermarkets for his desserts, chocolates, cakes and slices.
Gü also supplies export markets including Ireland, Belgium and France (which account for 20% of sales).