Group strategy remains to build long term sustainable businesses in each of the three pillar markets of Cake Decoration, Food Ingredients and Premium Bakery.
As a diversified food business, Real Good Food operates in a wide number of food market sectors and sales channels. With a market-led philosophy, the business carefully monitors trends which shape business plans. A summary of major trends in each division is shown below.
In the last 12 months the £135 million retail cake decoration market has flattened off with the only area in any growth being frostings (soft icings) which grew by 3% value in 2016. (Kantar 12 months 2016) While the market has benefited from positive attitudes towards home-baking, there has been relatively little branded support and innovation helping consumers become more proficient. Renshaw’s planned launch of a new retail brand ‘Simply Create’ is designed to fulfil this opportunity.
Internationally, the market for icings is predicted to show a compound growth rate of over 4% over the next five years with America and Europe accounting for over 80% of the market. (QYR Food Research Centre)
Americas, Europe and Australasia
Renshaw Simply Create to target the novice user
Frostings and Icing Discs
Export and novice opportunity
Site reconfiguration to improve in-line processing
Automation of disc and plaque production
New premium quality hot process frostings
Reduction in outside warehousing
In this division, Brighter Foods have targeted the growing ‘health’ sector. Health is now cited as a reason for food choice on 40% of food occasions in home. ‘Free from’ products are now bought annually by as many as 80% of households with markets such as ‘Free From Cereal Bars’ growing at 35% year on year. The overall market for groceries bought specifically for health reasons is now worth in excess of £20 billion and is growing at four times the rate of the total market. (Kantar)
Brighter Foods health bars (acquired April 2017)
Brighter Foods capacity
The total market for sweet cakes and pastries is £2.7 billion and is growing at 2%.
Chantilly Patisserie is totally focused in the Foodservice sector where consumer trends point to further growth.
93% of consumers now eat out of home every week in a total market worth £87 billion and growing at 2.3% in 2016. A relevant sector for Chantilly Patisserie is branded food pubs. The number of branded food pubs has grown by nearly 50% over the past five years. (CGA Peach 2016)
Broader retail customer base
Freezing capability for quality, efficiency and flexibility