UK manufacturer Premier Foods is investing £19m ($25.6m) at its Lifton site in Devon to boost Ambrosia dessert production.
In a statement released today (22 September), Premier Foods said the investment comes in “response to growth in consumer demand” and aims to “improve efficiency”.
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The investment, spanning three years, will be implemented in two stages.
Premier Foods said the initial phase, costing £9m, has “modernised” the production of Ambrosia rice pudding and custard by adding a new custard filling line and high-speed packing lines.
The second phase, involving a £10m spend, is currently underway.
It includes a “small” factory extension to accommodate a new custard-making facility, expected to be completed by next summer.
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By GlobalDataPremier Foods anticipates that the enhanced efficiency from these upgrades will create additional capacity at the site, enabling it to meet the rising consumer demand for Ambrosia porridge pots.
The upgraded high-speed process is designed to cut energy consumption by 50% compared to traditional cooking methods, according to the company.
Additionally, the owner of Sharwood’s brands plans to shift its custard and rice pudding pots to recyclable packaging.
Rachel Matheson, factory general manager at Premier Foods Lifton site, said: “This investment shows how committed we are to Lifton and to keeping our manufacturing here in the UK. Ambrosia is one of Britain’s most loved food brands, and we are proud to keep making it right here in Devon.
“The porridge pots have been a huge hit, and it is great to see how success like this enables us to reinvest in the site, back into our teams and in increased capacity. Our site has been part of the Lifton community for over 100 years and we are just as excited about what’s coming next.”
The Lifton facility employs over 320 people and produces 65 million kg of custard and rice pudding, using more than 50 million litres of milk sourced from West Country farms. annually
The announcement comes just a month after Premier Foods’ acquisition of Merchant Gourmet for £48m.
Merchant Gourmet, known for its ready-to-eat products, is expected to generate £28m in revenue in the year ending 28 March.
In its first-quarter results released in July, Premier Foods reported a slight increase in group sales, rising by 0.2% to £239.7m.
The company’s performance is divided into grocery and sweet treats sectors.
The grocery segment experienced a 2.8% decline in sales to £174.4m, with the branded products within this category dropping 2.2% to £158.4m. Conversely, the sweet treats segment saw a robust 9.1% increase in sales, totalling £65.3m.
For the full financial year of 2024, Premier Foods recorded stable sales of £1.15bn, with operating profit up by 1.9% to £181.1m.
Both net profit and diluted earnings per share rose by 11% and 14.1 pence, respectively.
