High street baker Greggs has been given the green light to build a new savouries factory in the Midlands.
The company's plans for a new site in Hinckley, Leicestershire, were approved by Hinckley and Bosworth County Council after a planning application was submitted in January and now the firm can press on with creating the facility. It is estimated that it will cost £30 million but a Greggs spokesman talking to FoodManufacture.co.uk declined to give any timescale on when it would be completed. The move is adding to Greggs' manufacturing capacity which is already thriving in the north-east of England.
Greggs is a prominent feature on UK high streets with the baker branching out from the conventional stores into cafes and restaurants. The introduction of selling coffee has led to the birth of Greggs Moment outlets which are becoming a huge hit for shoppers that want to take a break when out in the city centre.
However, the company suffered during March as its profits took a marginal hit with officials blaming the unseasonably bad weather. The firm experienced a 2.2 per cent fall in pre-tax profits while sales also declined by 2.7 per cent, which resulted in a disappointing preliminary result for the first quarter of 2013.
The news that the production facility in the Midlands has been given the go-ahead will no doubt provide a boost for Greggs' operations. Officials explained that there is no word on the jobs situation but maintained that no positions would be lost as part of the move.
Speaking about Greggs' situation, Wayne Brown, analyst with investment bank Canaccord Genuity, told the news provider: "It is opening the plant to support the increase in growth to its wholesale business for third-party distribution, which is to supply frozen products to Iceland, and through its distribution channels overseas, for example the army in Germany. It’s also to free up space so that the other distribution centres can focus on the core business."