In April 2021 US-based global bakery giant CSM offloaded its European business and it became Baker & Baker in Wirral and the business has seen £380m of sales in its first year. Tony McDonough reports
A Wirral bakery products supplier that was formed from the sale of a division of a global bakery giant is off to a flying start with sales of £380m in its first year.
This figure for Baker & Baker is 12% higher than the previous year’s turnover figure for the business when it was a subsidiary of US-based CSM Ingredients. In April 2021 CSM sold what was its European division and Baker & Baker came into being as a standalone venture.
From its headquarters in Bromborough, close to the River Mersey, Baker & Baker employs around 2,500 people across 12 sites in seven European countries. It manufactures a range of own label and branded bakery products to suit the needs of customers and consumers in markets across Europe.
Despite the challenges of rising commodity prices and fluctuating COVID-19 restrictions throughout Europe in 2021, the fledgling business which is backed by an investment subsidiary of Investindustrial.
Baker & Baker has consolidated its position as a leading supplier of sweet bakery products within the retail and food service segments across all key European markets. Products include its ‘Boomies’ Berliner donut, and the lower fat and calorie Simpsons donut range.
Record growth in Baker & Baker’s licensing portfolio also delivered a significant proportion of its 2021/2022 financial performance. Via its exclusive bakery partnership with Mondelez, Baker & Baker manufactures and sells a broad range of donuts, muffins, cookies and brownies under the iconic Oreo, Cadbury, Milka and Daim brand names.
The Mondelez licensing portfolio delivered record retail sales in excess of £80m in 2021, and continued consumer demand for indulgent bakery products with strong brand resonance is projected to deliver further growth in 2022.
In 2021, Baker & Baker opened an office in Dubai and appointed a senior sales team, headed up by Ryan Perera, to exploit new customer opportunities throughout the Middle East and North Africa. Later this year, it is also preparing to open its first office in Poland.
Chief executive John Lindsay said: “Our first year as Baker & Baker has been an incredible journey.
“Successfully completing a complex business separation during normal market conditions is challenging, but considering raw material inflation and the impact of COVID-19, we have demonstrated considerable resilience and agility to deliver an impressive financial performance.
“The expertise, commitment and hard work demonstrated by our colleagues during a turbulent period has also been critical in driving this growth. Our priorities for the forthcoming 12 months are to build on these solid foundations.”