FDBusiness.com

Greggs Continues to Advance its Business Transformation Programme

 Breaking News
  • Agrial Continues Strategic Expansion With German Dairy Acquisition Agrial, the French farming and food co-operative, is continuing its quest to create value for its dairy farmer members by acquiring German company Rotkappchen Peter Julich Group, a specialist in cow’s and goat’s milk cheeses. The acquisition of Rotkappchen Peter Julich Group, which owns three famous brands in Germany, furthers the growth strategy of Eurial, [...]...
  • €191 Million to Promote EU Agri-food Products at Home and Abroad The European Commission has adopted the 2019 promotion policy work programme, with €191.6million to be made available for programmes selected for EU co-financing – an increase of €12.5 million compared with 2018. €89 million will be allocated to campaigns in high growth countries such as Canada, China, Colombia, Japan, Korea, Mexico, and the United States. Some [...]...
  • Müller Removes Sugar With New Yogurt Culture Müller Corner, one of Britain’s best loved yogurt ranges, is set to reduce sugar by up to 9% and gain a creamier texture, thanks to the discovery of a new yogurt culture. Following a rigorous research and development process which involved access to more than 13,000 strains, Müller discovered that the combination of two specific yogurt [...]...
  • Mintel Launches Purchase Intelligence in the UK Mintel, the world’s leading market intelligence agency, has launched Mintel Purchase Intelligence, the newest innovation in product comparison technology, providing rapid, reliable consumer opinion on every reported new food and drink product in the UK*. Every day, Mintel benchmarks consumer reactions to new product launches so manufacturers, companies and brands can immediately understand and analyse what is [...]...
  • Discovery, Plant-Based and Alternatives Lead the Top Ten Trends For 2019 Targeting increasingly adventurous consumers, set on new discoveries and experiences, will be key to developments in the food and beverage industry in 2019. The connected world has led consumers of all ages to become more knowledgeable of other cultures, contributing to 35 percent growth of “discovery” claims, when comparing 2017 and 2016 new product launch [...]...

Greggs Continues to Advance its Business Transformation Programme

Greggs Continues to Advance its Business Transformation Programme
March 01
10:46 2018

Greggs, the leading bakery food-on-the-go retailer in the UK, with over 1,850 retail outlets, increased sales by 7.4% to £960.0 million in 2017. Within this company-managed shop like-for-like sales grew by 3.7%. Underlying operating profit, excluding property profits and exceptional items, grew by 4.6% to £81.7 million during the year. Pre-tax profit (including exceptional items) fell by 4.3% to £71.9 million. Strong cash generation is supporting Greggs’ investment programme for further growth.

Economic conditions became more challenging in 2017, with business cost inflation rising significantly due to food ingredient and labour cost increases affecting the entire sector. However, Greggs was able to leverage its scale and deliver productivity improvements to mitigate some of these pressures but, as expected, saw some year-on-year margin slippage. The market generally saw price inflation returning to the food sector, which resulted in a slowdown in disposable income growth for our customers.

Roger Whiteside, chief executive of Greggs.

Roger Whiteside, chief executive of Greggs, comments: “In 2017 we delivered another strong performance in challenging economic circumstances as rising inflation impacted both our own costs and customers’ disposable income. At the same time we continued to make good progress with our business transformation programme. Whilst the UK consumer outlook remains challenging, we are encouraged by the start to the year. 2018 will be the peak year for investment in our supply chain as we create the platforms for further growth. We also plan to open a record number of new shops as we implement our plan to grow Greggs as a leading food-on-the-go brand.”

In January 2017, Greggs outlined details of the next phase of its major investment programme focused on increasing logistics capacity and consolidating its manufacturing operations into centres of excellence in order to support shop growth. Once implemented this new supply chain platform will deliver improvements to product quality, competitiveness and, alongside systems investment, will complete the group’s transformation from traditional bakery to food-on-the-go.

Overall the expansion plans will create thousands of new roles in retail and distribution operations but will result in fewer jobs in manufacturing.

The investment phase is a complicated programme of work which will take until 2020 to complete. Greggs has made a good start in 2017, completing the transfer of its Edinburgh operations to its Glasgow bakery, which has been extended to become a centre of excellence for ‘Yum Yum’ production, and extending the Leeds bakery to create a centre of excellence for cake and muffin manufacturing.

The year ahead will be the peak year for investment in the programme including the creation of Greggs’ centre of excellence for doughnuts in our Gosforth Park bakery.

Greggs has made further significant progress in the fourth year of its major process and systems investment programme. In 2017, Greggs successfully deployed its largest ever systems roll out, replacing its traditional shop ordering with a new central forecasting and replenishment process. Benefits in improved product availability for customers have already been realised and Greggs expects to see savings start to come through in lower wastage figures.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • November 21, 2018expoSE European Asparagus and Strawberry Fair
  • November 27, 2018Health Ingredients Europe
  • November 28, 2018FOOD & LIFE
  • December 3, 2018P&P 2018
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements