Cranswick, one of the UK’s largest meat groups, has struck a deal to buy foodservice sausage supplier Blakemans for £32m ($42.8m).
London-listed Cranswick, a producer of pork, poultry and convenience meat products for major UK grocers, revealed the purchase in its annual results statement today (20 May).
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Cranswick said Blakemans operates out of a factory in Newcastle-under-Lyme, Staffordshire, and employs around 290 people at the site.
“The acquisition is complementary to our existing added-value gourmet business, adding capacity in raw and cooked sausage production,” Cranswick said in the results commentary.
CEO Adam Couch described family-owned Blakemans as “a well‐invested, leading foodservice sausage manufacturer”.
He added: “Acquisitions are a core element of our growth strategy, allowing us to consolidate further our core business, expand newer growth categories or diversify into new sectors and markets.”
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By GlobalDataJSR Genetics was also recently acquired, a pig genetics and commercial breeding business. Further afield, Cranswick bought pork and poultry processor Froch Foods last year and struck a deal in pet-food in 2022 for Grove Pet Foods.
In 2021, Ramona’s Kitchen – a producer of houmous, falafels and dips – and Atlantica UK – a supplier of private-label Spanish tortillas – were added to the Cranswick portfolio.
In light of recent animal abuses revealed at a Cranswick pork plant, which prompted the company to suspend operations at the site in question, the business is launching an independent review of its welfare standards.
Footage was filmed by the Animal Justice Project earlier in May reportedly showing workers slaughtering piglets in an inhuman way, known as ‘piglet thumping’, along with other alleged abuses.
Cranswick told the BBC at the time that it had suspended workers at the Northmoor Farm near Market Rasen, Lincolnshire, and would launch an investigation.
In today’s results statement, Cranswick explained: “We have always placed the highest importance on animal health and wellbeing and continuously aim to have the most stringent standards in the sector. We take seriously any instance, anywhere in our supply chain, where behaviour fails to meet those standards.
“We are therefore instigating a new, fully independent, expert veterinarian review of all our existing animal-welfare policies, together with a comprehensive review of our livestock operations across the UK.”
For the year to 29 March, Cranswick reported revenue of £2.72bn, an increase of 6.8% and 6.4% on a like-for-like basis.
Adjusted operating profit rose 11.8% to £206.9m, with the margin reaching 7.6% from 7.1% a year earlier.
Elsewhere, adjusted operating profit before tax climbed 14.3% to 197.9m to deliver and adjusted EPS print of 273.4 pence, up 15.6% from the corresponding period.
Cranswick chairman Tim Smith described the operating environment during the year as “challenging”, along with “wider macroeconomic” pressures.
Smith called on the UK government to do more to support the local food industry.
“We believe that government should provide a clear and coherent framework to facilitate long-term investment and sustained growth across the industry.
“As a leading UK food producer, we are aligned with others across the sector in our ambition to operate in an environment underpinned by certainty and success. Translating this ambition into action requires a regulatory environment that supports long-term sustainable investment.
“A more streamlined and responsive planning framework is, therefore, essential to unlocking capital investment, supporting job creation, and growing regional economies.”
Cranswick’s fresh pork business segment grew revenue by 4% in the year through March to account for 24.2% of the group total.
Poultry revenue increased 20.3% and represented 19.6% of the total.
In convenience – meals, charcuterie, antipasti and houmous – Cranswick grew revenue by 0.5% to account for 36.2% of the group.
Gourmet products, such as meat pies, sausage and bacon, saw revenue increase 8.8% to make up 18.7% for the Cranswick group.
