The Group will deliver shareholder value by building long term sustainable businesses in its three pillar markets of Cake Decoration, Food Ingredients and Premium Bakery.
Each of these markets has different characteristics and our strategies will be tailored to the specific market needs, but with the common theme of building long term sustainable growth.
Cake Decoration is a growing and global market with a spectrum of consumers from experts to beginners and a wide range of trade channels. The market displays many similar characteristics to hobby, leisure and fashion markets and as such has the potential for above-average returns compared to the food industry average. At the same time the need to invest in innovation and manufacturing and supply chain flexibility is paramount.
Real Good Food will utilise Renshaw as its global brand to access this market, leveraging its strong 'The Professionals Choice' reputation. The launch of 'The Renshaw Academy' will be used to underpin and build its global reputation as well as being a showcase for all Real Good Food cake decoration products from both Renshaw and Rainbow Dust Colours. As well as holding courses at the Academy facility in Liverpool, the Academy will build a network of global ambassadors for the Renshaw Academy. Courses will also be webcast to international audiences.
Food Ingredients is a broad market sector with major product sectors driven by commodity pricing. However, within this there are a number of sources of competitive advantage and added value. Customer service and logistics can be a significant differentiator while technical support and (in traded products) full traceability is an important element in the customer proposition.
Real Good Food will focus on its core competencies of dairy and sugar trading as well as chocolate coating, jam, fruit preparations and sauces manufacture and seek to develop added value opportunities on this strong base. The acquisition of the Sports Nutrition brand ISO2 Nutrition, and, more recently, Brighter Foods, a leading example of value-added snack bars targeted at the health market, are good examples of this. R & W Scott meanwhile has invested in capability to supply premium sources for both the manufacturing and retail sectors as well as soft fillings for the confectionary industry.
Premium Bakery is a growing sector with volume in commodity bakery in decline, alongside growth in value as consumers migrate to higher value premium offerings both in home and increasingly out-of-home. Health concerns are relevant but high quality, indulgent and occasional treats still represent a growing opportunity. New product development is an important facet of the market with opportunities to deliver healthier yet still indulgent eating products a particular focus.
Real Good Food will focus on a number of products and processes where it has product quality leadership – e.g. Danish, yum yums, frozen desserts. Haydens will launch a branded range to showcase its product excellence and extend its retail presence while the acquisition of Chantilly Patisserie not only represents an extension of the range portfolio but facilitates greater access to out-of-home eating occasions. Investment will be made in automating non-added value processes provided they maintain or even enhance product consistency and quality.