Orchard Valley Foods buys ingredients firm amid sales boom

By Rod Addy contact

- Last updated on GMT

Orchard Valley Foods has a wide portfolio of ingredients, covering sectors such as bakery
Orchard Valley Foods has a wide portfolio of ingredients, covering sectors such as bakery

Related tags: Milk, Food

Orchard Valley Foods has acquired Food Ingredients International (FII), boosting its potential annual sales to more than £20M.

The agreement had given the company access to more than 60 new customers, including a major global infant formula manufacturer, and a network of five new suppliers, the company claimed.

Daventry-based FII has added to the company’s existing specialist ingredients business, broadening its range to include yeast products, milk and whey proteins and powders, dairy ingredients and organic, standard and dietetic cereal flours.

FII’s portfolio also includes vinegar and honey powders, fruit flakes and oat, potato and fruit fibres.

In addition, the move enables Orchard Valley Foods, based in Tenbury Wells, Worcestershire, to grow its offering of food mixes and industrial blends and deliver a greater variety of application. These cover savoury dry or wet mixes, soups, sauces, gravies, bakery formulations, infant recipes and cereal bars.

Split offering into three

Gill Bullock, marketing manager at Orchard Valley Foods, told FoodManufacture.co.uk the transaction had enabled the firm to split its offering into three distinct units: specialist, dairy and confectionery.

“The new portfolio fits the ingredients we already had, but we will be moving them into a separate division,”​ she said.

The company could bring an ingredients team with many years of experience of products and industrial markets to bear on the expanded business, it said.

Integration process

FII md Michael Smallwood is understood to be working with Orchard Valley Foods for up to 12 months to help manage the integration process.

“Food Ingredients International has a great reputation amongst its customer base, a comprehensive product portfolio, and access to outstanding production facilities that we are pleased to inherit,”​ said Orchard Valley Foods md Mike Forrester.

“We’ve a strong desire to develop the business, introducing our existing customers to the wider set of functional components we now supply.”

The mainstay of Orchard Valley Foods’ business is supply to the UK food industry, with ranges such as Secret Ingredients and McDougalls and its Mini Bulk selection.

The firm, which was set up in 2004 and employs 54 people, also sells home baking products to consumers through retail channels and supplies wholesale and foodservice customers.

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