Gluten-free food manufacturer born out of administration gets boost

FOOD group Abbeydale has acquired new premises and is fitting them out after a £100,000 funding boost.

The Scunthorpe-based firm has received a business loan from Finance Yorkshire after seeing demand for gluten-free products skyrocket.

The 14,000 sq ft facility means that the firm will have the capacity to double turnover. The firm currently has revenues of £7.5m.

Initially the group developed as a holding company in 2011 to purchase two companies who had gone into administration.

Saxon Quality Foods, which was formerly Country Chef and Chapel Foods previously Denby Dale Pie Company were combined into one firm, Abbeydale.

It later acquired frozen mushy pea business Pie Toms. The growth in demand for gluten-free products meant the company needed to relocate Chapel Foods and Pie Toms to the new premises.

Andrew Hayes, managing director of Abbeydale, said: “People are more aware of gluten intolerance and this has led to an increase in demand for gluten-free products. We had reached a point where our existing facilities were unsuitable to meet this demand.”

Abbeydale Food Group has seen two previous investments of £50,000 from Finance Yorkshire, which assisted in the purchase of new equipment and the cost of fulfilling contracts.

Additional financial support for the factory investment was provided by the Humber Local Enterprise Partnership and Lloyds Bank.

Alex McWhirter, chief executive of Finance Yorkshire, said: “Our Business Loan investments enable SMEs to realise their potential, securing and increasing jobs in the region.

“Our latest investment in Abbeydale Food Group shows how Finance Yorkshire is continuing to invest and how we can help other businesses achieve sustainable growth.

“Abbeydale Food Group fits our remit of investing in growing, innovative companies – the gluten free market is now worth over £180m and continues to innovate having had the highest number of product launches of any food category.”