Brace's Bakery and Greggs investment and expansion plans

By Gwen Ridler contact

- Last updated on GMT

Brace's Bakery and Greggs both announced expansion plans this week.
Brace's Bakery and Greggs both announced expansion plans this week.

Related tags: Bakery, Finance

Welsh baker Brace’s has invested £4m in new production line, while Greggs has secured planning permission for an expansion of its Newcastle factory.

Brace’s Bakery has invested £4m in a new production line with the support of a £2.5m finance package from HSBC UK and HSBC Equipment Finance. 

The new production line will allow the fourth-generation business based in the Eastern Valleys of South Wales to produce up to 16,000 rolls an hour, expanding on the 1m products produced for supermarkets and shops in the region.  

Commenting on the investment, director Jonathon Brace said: “Since installing the new production line, we are now in a position to expand our volumes and offer a wider range of roll products to include tea cakes. 

Immediate improvements  

“We’re thankful to Sian Williams and Scott Ritchie at HSBC UK for their continued support in the expansion of our business and for making the process as seamless as possible for us. Since the production line was installed in January up until Easter, we managed to produce nearly 2m packs of six hot cross buns.” 

Operating since 1902, Brace’s Bakery supplies to all major supermarkets in South Wales and the West of England with its own brand of bakery products. It hoped the investment would allow the brand to expand into new markets.  

Simon France, deputy head of HSBC Equipment Finance (UK), added: “We’re delighted to support such a well-respected home-grown business that has become Wales’s favourite bakery. It’s great to see Jonathan and his team expanding the business to produce a wider range of products and we’re excited to see the business continue to flourish.” 

Meanwhile, this week saw high street baker Greggs receive approval from North Tyneside Council for a development that would bring 125 jobs to the region and support the opening of 800 new UK stores. 

Extra production space  

The baker has been given the go ahead to convert a freezer and goods store at its Longbenton, Newcastle site into extra production space.  

A statement from Greggs sent to the council said the facility made the majority of savoury products for the business but by the end of 2023 sales and shop growth would exceed current supply. 

"We have therefore decided to expand operations at Balliol with the introduction of a fourth production line, which will increase site output by around 30%,”​ the statement read.  

“This new production facility will be located in the building that was previously the freezer but is now vacant, as frozen savoury products made at Balliol are now stored in the recently completed automated freezer within the Balliol National Distribution Centre.” 


Related topics: Bakery, Operations

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