New York Bakery Co has secured an GBP11.5m (US$18.3m) investment package from parent company Maple Leaf Foods to expand its business on the back of increasing bagel sales.
The investment will be used to extend the firm’s existing Rotherham factory, increasing capacity to create what the firm claims will be the largest bagel factory in Europe and one of the largest globally. New York Bakery has also secured a GBP3m communications budget, it said yesterday (8 November).
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According to New York Bakery, it has seen a 66% increase in sales since its bagel relaunch in January. The revamp added over GBP8m in incremental sales to the ‘morning goods’ category since the beginning of the year, the company added.
The firm said its UK expansion plans will further strengthen the brand’s category leadership; it currently holds a 76% market share.
“The significant backing by Maple Leaf Foods will enable us to move forward with our ambitious expansion plans in the next five to ten years,” New York Bakery said in a statement. “As a result we can now increase our capacity at our Rotherham site to meet growing consumer demand and support our growth aspirations as the market leader in speciality bagels.”
A spokesperson for New York Bakery told just-food today that the expansion will create jobs but could not give a number.
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