Value-conscious customers drive big expansion by food company

by Lizzie Murphy - 11/08/2009

"DEMAND for value foods such as sausages and ham during the recession is helping a Yorkshire manufacturer to nearly double its turnover after investing £4m in new production facilities."

Newsholme Food Group, based in Huddersfield, plans to increase turnover from almost £30m to £50m in the next two years.

The family-run firm has just completed a 50,000 sq ft factory extension at its premises on New Hey Road in Oakes and is now refADVERTISEMENT urbishing the old production space for the first time since it was built in 1983.

Managing director John Newsholme said: "We were operating at capacity and we neede d more space to expand. It'll be one of the most modern factories in Europe when it's all finished."

The company, which is home to the Country Park Foods brand, supplies chilled and frozen sausage, cooked meats and ready-made meals to its customer base throughout the UK and Europe.

The extension, which was designed to house the cooked meat division, has taken two years to complete and is also home to a modern Weber slicing machine, enhancing the group's capability within the food service industry.

The new facilities will help to increase its output of cooked ham from 70 tonnes to 200 tonnes a week.

Demand for other food, such as sausages and ready meals, is also growing in the recession.

Mr Newsholme said: "People aren't going out for meals as much so they are buying more ready meals to eat at home instead. That's one of the reasons why we think the demand for our products is growing so much."

Eventually Mr Newsholme plans to open another site to house its cold store and meal factory, which would allow the existing site to concentrate on cooked meat production.

Newsholme Food Group's customers include the likes of Heron Frozen Foods and Macro, as well as independent wholesalers and care home caterers.

Its longest-serving customers are J&S Foods and Leeds Bacon, which it has supplied for over 30 years, and Batley's Cash and Carry, a customer for over 15 years.

Newsholme Food Group is looking to expand into new markets to achieve its growth targets.

Mr Newsholme said: "Part of our growth is down to new customers. We are now starting to sell to sandwich-making factories and we are hoping to grow in this area."

The company is also planning to launch a new range of meat-based ready meals to appeal to the upper end of the market.

It already produces Yorkshire Premium Ham, which has won awards from the British Pig Executive along with its sausages and black pudding. "Mr Newsholme added: "It's a market we have been asked to look at by some of our customers in Ireland."

In order to facilitate growth, the firm plans to take on up to 70 extra staff to add to the 240 it already employs.

Over the last 12 months the firm has also revamped its management team.

Mr Newsholme said: "We have now got the team I wanted. We had a lot of weaknesses in the management structure but now we have a new production director, who we pinched from one of our competitiors, and a new finance director.

His father Trevor Newsholme, who started the business in 1950, remains an integral part of the business as chairman. The company employs nine members of the Newsholme family in total, including John Newsholme's son and daughter.

Mr Newsholme added: "My father is 85 but he is very fit for his age and he comes into the office every day. He has seen a lot of changes in the business since he started it 50 years ago but he is very proud of how the business has developed."

Trevor Newsholme added: "We've had to work for it, nothing has dropped from the sky. And it's thanks to this hardworking ethos that the company celebrates the position it's in today."

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Contact Email: lizzie.murphy@ypn.co.uk

More Details: http://www.yorkshirepost.co.uk/businessnews/Valueconscious-customers-drive-big-expansion.5538145.jp