Panelto Foods is investing €7m ($8.2m) to install an additional bread production line at its plant in Longford, Ireland.
Owned by private-label group European Bakery since 2023, the bake-off manufacturer said in a statement the new line will produce “next-generation speciality” breads tailored to shifting consumer “preferences and retail trends”.
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A spokesperson for Panelto Foods explained: “The in-store bakery category is one of the top three categories for quality perception as shoppers continue to seek out greater choice and innovation, including premiumisation.
“Retailers see in-store bakery as a beacon of quality, which in turn has increased the demand and expectation for NPD/innovation.”
The company’s breads are made with basic ingredients such as flour, yeast and water with the addition in some cases of seeds, grains and cheese, the spokesperson confirmed, adding that the factory will have three bakery lines when the newest starts production in July.
CEO Garry Walsh said in the statement: “Our insights and R&D team never stand still, and we have invested heavily in understanding consumer and retail trends, strengthening our R&D capabilities. Ultimately, you cannot execute innovation without a great team.”
With the latest outlay, total spending on facilities and equipment since 2018 rises to €40m.
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By GlobalDataPanelto Foods mainly produces private-label bread for “key” retailers in the UK and Ireland, as well as the foodservice channel, the spokesperson said, clarifying the potential impact on volumes: “This phase of investment will enhance capability, and not grow capacity. Following phase one, capacity enhancement may be a phase two of investment.”
Panelto Foods employs 370 people at its Longford site, which includes a bakery, a research and development centre, and a training hub. No new jobs will be created from the latest investment, the spokesperson said.
The statement carried a comment from the CEO of government agency Enterprise Ireland, Jenny Melia, but the Panelto Foods’ spokesperson refrained from confirming any participation in the latest investment.
“Panelto has availed of Enterprise Ireland funding supports through various grant schemes over the last number of years and is very grateful of their continued support,” the spokesperson added.
Melia said: “Enterprise Ireland is proud to support Panelto Foods on its journey and we look forward to working closely with Garry and the team as they continue to innovate and deliver world-class bakery solutions to customers at home and abroad.”
In 2023, Panelto Foods became part of the newly formed European Bakery Group headquartered in Tilburg in the Netherlands.
It was created when Netherlands-based Dutch Bakery and Germany’s Coolback combined.
Dutch Bakery had been majority owned by UK private-equity and venture-capital firm 3i Group since 2021; 3i Group is now the owner of European Bakery.
Peter Burke, Ireland’s minister for enterprise, tourism and employment, said in the statement: “This investment not only enhances the company’s capabilities but also reinforces its role as a key employer and contributor to the local economy in Longford, and management and staff should be extremely proud of the community they have built.”
