Griffith Foods is increasing its UK footprint with the acquisition of ingredient dealer The Flavourworks for an undisclosed sum. The Dorset-basically basically based substitute will be integrated into Griffith Foods’ European & African division.
“The Flavourworks is an improbable match, ticking the full bins in the case of formulation, capability and skill,” Wim van Roekel, Griffith Foods’ President, Europe and Africa, suggested FoodNavigator.
Potential and capabilities
Van Roekel characterised The Flavourworks as ‘a with out a doubt modern company’ that delivers ‘top payment solutions’ for savoury recipe constructing. He acknowledged that there are a ‘lot of similarities’ between Griffith and The Flavourworks – to boot to a couple crucial differences, basically in capabilities and buyer rotten – that originate the acquisition ‘a terribly exact match’.
“We are traditionally exact in seasonings, coating techniques and sources. On this dwelling, we glance insist through convenience meals solutions and more healthy solutions in out-of-dwelling and retail. That is the assign we were lacking skill. We were rising with out a doubt instant within the UK, to a couple degree the assign it became once arduous to maintain with ask. So, skill is undoubtedly one of many areas we try to search out.”
The Flavourworks moreover strengthens Griffiths portfolio of meals ingredient solutions, the regional lead persisted. It adds butter melts, dressings and frozen sources to boot to increasing the corporate’s skill in key classes fancy marinades within the UK. For the time being, Griffith’s marinades are produced in Belgium. “Put up Brexit or no longer it is crucial for us to maintain that marinade capability in within the UK.”
The wedding of Griffith’s and The Flavourwork’s expertise will boost the blended company’s innovation talents, van Roekel persisted. “That’s one of many beauties of the collaboration. We can originate on the expertise that is on hand in each firms by combining the technology and expertise and capabilities each firms bring. That allows us to bring novel solutions,” he worthy, pointing to the applied sciences The Flavourworks leverages to aid the shelf lifetime of sources and dressings while preserving the flavour profile as official as that which that you just can perchance well be stutter of.
Gross sales synergies and insist channels
Griffith will moreover indulge in complementary strengths across a series of market segments. The deal will allow Griffith to tap sales synergies and feed its possess portfolio of formulation into The Flavourworks distribution.
Van Roekel elaborated: “Our focal level within the UK honest now is basically to meals manufacturers that offer into retail, the assign The Flavourworks has a more various portfolio of possibilities, moreover in foodservice. We launched our Custom Culinary vary two years within the past for the Europe and Africa market… The capabilities that The Flavourworks has to give are with out a doubt effectively-suited to grow our out-of-dwelling foodservice substitute.”
Indeed, out-of-dwelling is a spotlight for Griffith because it works to elongate its footprint in buyer segments it is ‘underrepresented’ in. While the corporate has a presence in QSR and retail in ‘assorted foodservice’ van Roekel acknowledged it has a ‘very restricted presence’. “We maintain got the capabilities and records however it requires a reasonably assorted slouch-to-market means. That is the assign now we were including to our portfolio. In that sense The Flavourworks is a terribly exact match to originate capabilities.”
Griffith emphasised that this acquisition is set insist – there are ‘no plans to originate any changes’ at The Flavourworks, with investment anticipated to bolt at each the new and newly obtained production services and products within the UK to toughen extra skill expansion.
“That is clearly a strategic acquisition. We maintain obtained The Flavourworks for the worth that they bring. There are going to be opportunities for some synergies – take into myth present chain, take into myth shopping, take into myth utilising the agility of the resources that The Flavourworks brings better. The postulate is to maintain the worth of The Flavourworks in its fresh format and then we’ll progressively start as a lot as originate it in truth a Griffith Foods family-owned substitute,” van Roekel elaborated.
Griffith delivers solutions across sources, dressings, seasonings and coating techniques, which comprise the corporate’s key product platforms. These platforms are blended with its core capabilities in meals science, health and nutrition, culinary and sensory science, the European substitute leader suggested us. “That mixture of product classes and capabilities is what we’ll put together to grow these buyer segments.”
So, what are the corporate’s innovation priorities?
Van Roekel responded: “Smartly being and nutrition before all the pieces.”
The corporate has space the target that its portfolio in Europe and Africa will be ‘100% pleasing and nutritious’ by 2027. This compares to spherical 42% of sales turning in a health component nowadays. “It is that mixture that is a actually mighty – merchandise that taste with out a doubt exact, proceed to bring that culinary component to patrons, however are blended with health advantages.” These attributes can vary from ‘disposing of the baddies’ – fleshy, sugar and salt – to ‘including health advantages to the proposition’.
Zooming in on segments, the corporate moreover sees fundamental runway for insist in more than a few proteins. “Meat has always been with us within the 102 years Griffith has been available within the market. We were founded within the Chicago meat district,” van Roekel reflected. “But we glance a fundamental transition within the protein section from meat protein to more than a few protein sources. We aim to be a entrance-runner using our product constructing capabilities.
“The two key areas we are specializing in are healthy nutrition and assorted protein.”
Because the corporate works to accept these areas it is adjusting its innovation formulation, transferring away from a spotlight on tailor-made innovation to be privy to product platforms. This, the corporate believes, will abet it bring more fundamental innovation with bigger impact.
Doubling sales, tripling the bottom line
Griffith Foods became once founded in 1919. But the corporate is no longer resting on its 100-year history. It is miles having a ask to the long speed with a notion to double the scale of its European substitute and triple its bottom line by 2027.
Rising sales at this intrepid whisk can no longer be executed through natural expansion, it requires an energetic M&A vogue.
“We are on the hunt – however no longer as a result of hunt,” van Roekel defined. “We maintain got an historical insist song myth of high single digits. In uncover to double in dimension and triple profitability now we should always grow in double digit numbers. The insist of the processed meals substitute is low single digits so meaning in uncover to maintain that whisk its very likely we’ll ask into attainable acquisitions – however most sharp when it is good.”
Increasing profitability at a faster clip will look the group shift its sales mix to increased price areas. “Specializing within the segments we are specializing in, bringing our capabilities to lifestyles for this buyer section, we enjoy that we’ll accept a increased return from these markets,” the businessman suggested us.
“We are tracking what we name the health and nutrition transformation… We finish look that for these merchandise we accept the next return. That is no longer as a consequence of we desire to pressure more earnings – that is moreover crucial – however we moreover should always reinvest in research to proceed to bring these advantages to our possibilities.”
Indeed, van Roekel became once desirous to emphasise that the corporate is no longer chasing scale for scale’s sake. Cause is on the center of Griffith Foods’ ambition, he contended.
“Our motive is, we blend care and creativity to nourish the arena. That’s a fundamental ambition, to try to feed the arena, originate the arena the next region, maintain a obvious impact on the those that survive this planet.
“The scale component is driven by our motive. We should always no longer rising for the sake of insist. We are rising to maintain a obvious impact on this planet. But in uncover to total that you just wish scale. Are we going to be the #1 product constructing company [in terms of size by 2027]? No. Are we going to be basically the most sharp product constructing company bringing pleasing and nutritious solutions to market? Yes, we are. That’s our aim.”
In phrases of sustainability, local sourcing as finish as that which that you just can perchance well be stutter of to its markets is a fundamental factor for Griffith. And the group’s European operations are investing in inexperienced initiatives which will be third-party verified by Ecovadis. Correct closing week, the corporate became once awarded a platinum rating for one of its four European manufacturing services and products, joining its assorted platinum and gold awards.
“We maintain got set aside a complete lot of effort and time into making our promise [a reality]. We maintain got acknowledged we’ll be a sustainable company. That’s no longer easy. It is miles a long high-tail that is more likely to be going to be with us forever.”