The investment will see the manufacturer transfer production of Loyd Grossman sauces from a third-party supplier in early 2028 in-house.
This comes after the business agreed an extension to its licensing agreement for the brand until 2034.
The £36 million injection marks the largest investment by Premier Foods in over 15 years and will provide the opportunity to significantly upgrade production capacity and improve efficiency at its Worksop site.
The factory is also home to brands such as Sharwood’s and Homepride cooking sauces, Batchelors, Bisto, Saxa, and Oxo.
The investment will be phased through to 2029 and involves the installation of a new high speed manufacturing line.
Following the upgrades, the Worksop site will more than double annual production capacity for the group’s cooking sauces’ brands, supporting future growth opportunities and providing enhanced capabilities for innovation.
As part of the investment, site storage facilities will be upgraded and expanded and a new link road built to streamline the flow of logistics around the site.
The licensing agreement with Sir Loyd Grossman, which has been in place since the partnership began in 1995, will be extended until 2034, with the option to extend for a further five years. Premier Foods said it underscores the continued confidence in the strength of the brand which has grown on average 4.7% a year in the last five years.
Premier Foods said that new launches have driven growth including the extension into pizza with the Loyd Grossman Pizza Range, and a no-added sugar range tapping into consumer demand for healthier options. This year it launched a range of premium sauces to celebrate 30 years of the partnership and meet consumer demand for making restaurant quality meals at home.
Alex Whitehouse, CEO for Premier Foods, said: “A key pillar of our growth strategy is investing in our supply chain to increase productivity and efficiency. Representing our largest site investment in over 15 years, today’s announcement is a great example of this strategy in action. It will enable us to more than double our annual cooking sauces production capacity, supporting growth opportunities and providing enhanced capabilities for innovation across our cooking sauces’ brands, while improving the site for our colleagues.
“Renewing our partnership with Sir Loyd Grossman reinforces our belief in the future of this brand and our ability to continue to drive growth through the application of our Branded Growth Model. At the heart of it all is our commitment to UK manufacturing and to the Worksop community, where we’re proud to be investing for the long term.”
Sir Loyd Grossman added: “I am thrilled to be extending our long-standing partnership with Premier Foods, whose commitment to quality and innovation has been central to the success of the Loyd Grossman brand. We share a passion for creating great-tasting products made with the very best ingredients. This renewed agreement reflects our shared ambition to keep innovating and to bring our sauces to even more customers across the UK.”
Premier Foods said its investment will strengthen the future of the site, which employs around 500 staff, as well as creating upgraded amenities.
It follows a recently announced £19 million investment into Premier Foods’ Lifton Creamery in Devon, home of Ambrosia custard, to increase production capacity in response to growth in consumer demand for porridge pots, improve efficiency and support local jobs.
