FDBusiness.com

UK-based own-label supplier Bakkavor has opened its first factory in Canada.

The 70,000 sq ft plant, based in the town of Cobourg in Ontario, has started to supply one of Canada’s “largest grocery retailers”, Bakkavor said. The company declined to name the retail customer.

Products made at the factory include Italian and Asian meals, soups and side salads. The Cobourg site is supported by Bakkavor’s Two Chefs facilities in Pennsylvania and New Jersey, the company said.

CEO Agust Gudmundsson

CEO Agust Gudmundsson added: “Our entry into the Canadian retail market reflects Bakkavör’s long term strategy to be a leading supplier of fresh prepared foods. We are focused on maintaining a selective approach to capital investment where we can support retail customers as they seek to expand and grow their business. This entry is a prime example of where we have been able to do this, using the strong market and operational expertise we have developed in our existing markets.”

The opening of the factory is positive news for Bakkavor, which has spent the last 18 months reorganising its UK production.

Last month, Bakkavor warned of job cuts at its English Village Salads subsidiary after a supply review from retail customer Asda.

However, in May, Bakakvor completed the expansion of Wingland Foods, a salad production site in Lincolnshire.

In March, Bakkavor said it would close its Exotic Farm Produce facility in the town of Kirton and, in January, the company said some 179 employees would leave a produce site in Bourne.

Nevertheless, the same month, Bakkavor announced plans to expand its Caledonian Produce plant.