Greggs invests in manufacturing site to support up to 3,500 shops in the UK

By Bethan Grylls

- Last updated on GMT

Members of the Greggs team, from left to right: Jonathan Stephenson, senior purchasing manager; Gavin Kirk, supply chain director; and Phil Wright, head of logistics
Members of the Greggs team, from left to right: Jonathan Stephenson, senior purchasing manager; Gavin Kirk, supply chain director; and Phil Wright, head of logistics

Related tags Investment

The UK food-to-go retailer is leasing a new frozen production and logistics facility in a Derby-based smart park, as part of ambitious scale-up plans.

The new facility is being developed at SmartParc SEGRO Derby on a high-tech food manufacturing site in Spondon and will see Greggs occupying a 23-acre plot.

SEGRO is a UK Real Estate Investment Trust and is an owner, manager and developer of modern warehouses and industrial property. It owns/manages 10.4m square metres of space, valued at £20.7bn, with customers in an array of sectors and properties and transportation hubs located across Europe.

Once this new Derby building has been constructed, Greggs plans to develop the facility and install manufacturing and logistics equipment to optimise the site’s operations. It’s expected to open in late 2026, creating up to 600 jobs.

This forms part of 2021 commitment from the food-to-go business to invest in its supply chain capacity. Last month, Greggs’ trading shop count sat at 2,500 and it aims to open between 140-160 (net) new shops this year, with plans to have more than 3,000 shops trading in the UK.

The new purpose-built facility will provide additional manufacturing capacity for products such as, new savoury and sweet lines, alongside logistics for frozen storage and fully automated robotic shop order picking and distribution solutions.

There is also scope for further expansion, with capacity built into the site for at least five manufacturing platforms and the potential for new production lines to be commissioned to meet volume demand.

Commenting, Roisin Currie, chief executive at Greggs said: “This purpose-built site offers significant flexibility to add new capabilities and lines as our business evolves. This is a significant step in our supply chain investment and will provide much-needed manufacturing and logistics support to power our ambitious growth plans.”

As part of a smart park, the facility will make use of an onsite shared Energy Centre (a centralised heating and cooling system that recycles heat from refrigeration plants across the estate), a rainwater harvesting system, PV panels, and EV charging points. There is also shared bike storage to encourage employees to cycle to work.

Jackie Wild, CEO at SmartParc added: “It is our ultimate vision that SmartParc SEGRO Derby becomes a hub for forward-thinking food businesses seeking sustainable and efficient operations, a collaborative work space and a first-class location with excellent connectivity, whilst also putting their people first. Greggs embodies this approach and we are immensely proud to welcome such a cherished food business to the site.”

In other news, a private equity firm has become a majority shareholder of UK supermarket Asda.

Related topics Frozen

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