£8.5m chilled food plant to create 200 jobs

Leeds-based Daniels Group, one of Britain's biggest chilled food manufacturers, is investing 8.5m in the new food plant at Lakeside Road, Innovation Way, in Grimsby's Europarc business centre.

The factory will produce a range of chilled and frozen foods for the UK and overseas.

As well as making New Covent Garden soup, the UK's best-selling chilled soup brand, the site will produce chilled ready meals for some of the UK's biggest supermarket groups and a new range of frozen soups for the catering sector.

Rob Burnett, Daniels Group chief executive, said the Grimsby site would play a "pivotal role" in accelerating the growth of the 155m turnover business.

He added: "We chose Grimsby because the area boasts a skilled labour pool with experience of working in the chilled food industry.

"In addition, the Europarc centre is close to our extensive network of vegetable growers in Lincolnshire which will help to minimise food miles.

"We are investing in the UK chilled food industry by increasing capacity and expanding the group's capability to meet current and future demand for soup and ready meals.

"Our investment in Grimsby underlines the confidence we have in the future of this business in which the Europarc plant will play a major role."

Mr Burnett said organic growth in the UK was central to the company's strategy.

Daniels Group supplies to multiple food retailers which have enjoyed quite good growth in the last year to 18 months, Mr Burnett added.

Daniels Group has doubled its turnover in the last five years and operates six manufacturing sites across the UK, with a head office in Killingbeck, Leeds.

The company is the market leader in fresh juice drinks. It also supplies branded and own label traditional puddings and freshly prepared fruit, to all sectors of the market in the UK and overseas.

New Covent Garden soup will continue to be produced at the Daniels Group's Peterborough site.

With annual sales of more than 60m, New Covent Garden soup accounts for 45 per cent of all fresh soup sold in the UK.

The production of Daniels Group chilled ready meals will also continue at Consett, in County Durham.

In 2006, the group expanded by acquiring a Lancashire pudding maker for around 10m.

The deal added Farmhouse Fare in Clitheroe to the Daniels operation

Daniels Group was acquired in January 2009 by Singapore Airport Terminal Services (SATS), which is the biggest provider of ground handling and airline catering services at Singapore Changi Airport.

Founded more than 60 years ago, SATS has operated in more than 40 airports in the Asia Pacific region.

Customers include international airlines such as British Airways, Singapore Airlines, QANTAS, United Airlines, Cathay Pacific and Air New Zealand.

SATS has been listed on the main board of the Singapore Exchange since May 2000, and has a market capitalisation of more than $2.5bn.

The new Grimsby factory will be based on a site run by Mariner Foods which closed in May 2008.

Mariner Foods, which is part of the Icelandic-owned Bakkavor Group, supplies ready meals, soups and sauces to supermarkets.

Its parent company reviewed its production structure in the UK in early 2008 after suffering "continued unsustainable losses".

Food for thought

The Daniels Group is a 155m turnover business, split over five chilled categories: fresh soup, chilled drinks, fresh fruit, ready meals and puddings.

It is probably best known for its New Covent Garden Food Company which produces fresh soup in a carton.

It also has a range of risottos.

It is behind the Johnsons Juice Co brand, which is the biggest, freshly squeezed juice manufacturer in Europe.

The company has also been manufacturing chilled meals since 1988, supplying the UK and Irish retail and food service markets.

The company employs 1,600 staff across the UK, including 400 in Leeds.