Newly listed Bakkavor is plotting a global expansion push after posting solid maiden results.
Bakkavor is a leading global provider of fresh prepared foods covering a wide product segment from bakery, desserts, salads to freshly-cut fruits and vegetables. The UK currently accounts for around 90% of the ready meal giant's business. However, Bakkavor believes it can capitalise on the growing demand for fresh prepared food internationally, particularly in China and the US.
In China, Bakkavor produces food-to-go products like fresh cut salads, wraps, sandwiches, soup, meal salads and fresh cut for a number of fast-growing Western food service operators like Starbucks, KFC and Pizza Hut.
Bakkavor increased its annual international revenues by 10% last year and hopes new projects in both US and China will supercharge global growth. Construction is under way on a meals facility in Texas and a bread facility in Charlotte in North Carolina, while in China, a multi-category facility in Haimen, Jiangsu Province is nearing completion.
Bakkavor’s CEO Agust Gudmundsson said, “The biggest obstacle to growth is supply. The new project in China will increase our capacity, and bring in Western-style technology to the area.”
Bakkavor has recently disclosed that like-for-like sales rose 5.4% to £1.8 billion (US$2.51 billion) for the year ended 30 December 2017, with total group revenues up 4.6%.