Gluten-free food manufacturer acquires new factory with Finance Yorkshire loan

Gluten-free food appears to have the right ingredients for success, at least for a Scunthorpe-based food manufacturer anyway.

To manage the increase in customer demand for products that don’t contain gluten, the Abbeydale Food Group has acquired and refurbishing the 14,000 sq ft facility in the town.

The manufacturer’s acquisition has been supported with a £100k Business Loan from Finance Yorkshire.

Finance Yorkshire’s investments to date have created and safeguarded 9,240 jobs across Yorkshire and the Humber and generated private sector leverage of some £167m.

Abbeydale Food Group provides supermarkets and caterers with prepared foods including frozen meat pies and vegetables.

The manufacturing firm, which has a £7.5m turnover, was established as a holding company in 2011 to purchase two companies out of administration: Saxon Quality Foods (formerly Country Chef) and Chapel Foods (formerly Denby Dale Pie Company). It later acquired frozen mushy pea business Pie Toms.

The growth in demand for gluten-free products meant the company needed to relocate Chapel Foods and Pie Toms to a larger premises.

Abbeydale Food Group secured two previous investments of £50k from Finance Yorkshire, which assisted in the purchase of new equipment and the cost of fulfilling contracts.

The Humber Local Enterprise Partnership and Lloyds Bank also provided further financial aid for the firm’s investment in a factory.

Andrew Hayes, managing director of Abbeydale Food Group, said: “People are more aware of gluten intolerance and this has led to an increase in demand for gluten-free products. We had reached a point where our existing facilities were unsuitable to meet this demand.”

Alex McWhirter, chief executive of Finance Yorkshire, added: “Our Business Loan investments enable SMEs to realise their potential, securing and increasing jobs in the region. Our latest investment in Abbeydale Food Group shows how Finance Yorkshire is continuing to invest and how we can help other businesses achieve sustainable growth.

“Abbeydale Food Group fits our remit of investing in growing, innovative companies – the gluten free market is now worth over £180m and continues to innovate having had the highest number of product launches of any food category.”

David Ward, portfolio manager at Finance Yorkshire, also commented: “We made this latest investment in Abbeydale Food Group in response to its growing sales, particularly to supermarkets. We were pleased to work alongside other lenders in supporting an important regional employer.

“We see a bright future for the business, as it looks to drive sales through the development of new food product lines.”