Cranswick’s £20m investment is set to bring Hull the bacon
100 JOBS CREATED FOR MCDONALD’S CONTRACT
CRANSWICK’S £20m investment to serve up the bacon for Mcdonald’s is closing in on completion.
The 100-job creating addition for the Hull headquartered firm in its home city has entered “validation stage” as it supports its huge supermarket supply role with further foodservice interests.
Adam Couch, chief executive, gave an update following a robust third-quarter trading statement in which full year expectations were raised.
He said strong revenue and earnings momentum delivered during the first half of the financial year continued during the 13 weeks to December 26.
He said: “It is really impressive. First trials are taking place now. We will have finished the site in Sutton Fields by the end of February, and we are entering the validation phase as we call it - as we cook the products through the site. We should be up and running by April.”
Of the sector crippled by successive lockdowns, with habits that have propelled sales through supermarkets by more than 20 per cent likely to stick, Mr Couch said: “We are looking forward to a lot more in food service, but we are forecasting a long legacy of people now eating from home and enjoying scratch cooking.”
An “uptick in expected full year results” has been highlighted, with unprecedented domestic demand allied to strong exports, with Australia, Vietnam and The Philippines turning to Cranswick as African swine flu issues hit traditional supply chains.
“Exports have been extremely strong, and Christmas was extremely strong for us, with record volumes and service levels,” he said.
“We have had unprecedented demand over the pandemic period anyway, and Christmas solidified that.
“To have a 99 per cent service level over that period was phenomenal.”
He praised forecasting and planning teams for their efforts alongside those processing in the 12,500-strong team spanning some 16 sites.
And that could grow beyond the golden arches-focused addition.
The company is also looking at East Yorkshire for poultry production too, following the launch in Eye, Suffolk.
Capacity has already been increased 27 per cent at the recent new build.
A northern operation had been highlighted with Morrisons a key customer back in November.
“We are still scoping that aspect, and also scoping a poultry plant close to the Hull area,” Mr Couch said.