Authentic Melton Mowbray Pork Pie Manufacturer For Sale

Business description

Profitable, long established food manufacturer of premium lines including:
Melton Mowbray Pork Pies,
Cold Cutting Pies,
Hot Eating Pies,
Sausages,

In addition to distribution of multiple associated lines.

The Company's Melton Mowbray products are produced to the requirements of the Protected Geographical Indication Status award that is to be awarded immanently by the EU. There are at present only 9 producers whose are member of the Association lobbying for the award and whose products to meet the criteria. Of those, ignoring Samworth Brothers and Pork Farms given their market focus, it is believed that the Company has the largest production capability while maintaining its hand produced, artisan quality product.

Approved supplier status for high street names, high end food halls and premium travel company.

B2C routes to market only just being investigated but have great potential.

Very active web domain resulting in product requests globally. Currently, only limited overseas supply is undertaken.

With the upcoming PGI award this is a very exciting time for the business with many new revenue stream opportunities.

Property information

Property:

Leasehold

Lease terms:

Lease premises due for re-negotiation in June 2009.

Location:

Trading estate

Other information

Expansion potential:

Future prospects for the business are strong. The Company continues to be known as a provider of high quality hand made produce at a reasonable cost to the purchaser. With focused marketing and leverage from the registration of the Melton Mowbray pork pie PGI, there appears little reason for revenue and profits not continuing to rise.

The sale also presents a very rare opportunity for both effective legal barriers to entry and for increase in awareness of the product range at zero cost through the award of the PGI status. Although the PGI covers only a single aspect of the range of products is presents an effective awareness method for all other lines produced.

The lack of any real competitor in the chosen market place is also likely to be strengthened through the award allowing a great opportunity to further develop the brand and revenues.

Competition / Market:

The size of the pork pie snacking market in the UK is estimated as around £132m (Source: TNS, August 2008). Although there have been concerns regarding the savoury pie market in the UK due to the focus on reducing the consumption of perceived high fat foods, a recent Mintel report findings show a small but steady growth in value. The Company have been keen to position their range as wholesome and traditional foods and not as high fat foods stuffs. The Company have consciously removed additives in the range of products wherever possible. This allows the range to be promoted as a return to wholesome foods of yesteryear while allowing an increase in demand and quick stock turn due to the reduced shelf life of the products (a pork pie typically having only a 7 day shelf life). The Company does not have a direct competitor across its chosen routes to market. Those noted either sell into multiple retailers with a mass produced product, or have sufficient capacity for their own retail requirements only.

Support & training:

Existing management will remain with the business either as as partial equity release or for a required hand-over. Key personnel would also welcome the opportunity of remaining with the business post sale.

Reasons for selling:

The reason for sale is that the management team feel that they have reached a point whereby to achieve the next stage of growth requires a strong individual who has the time commitment and investment capability to drive the business forward. Ideally the investing individual would be part of a larger food group or have significant food knowledge. It is anticipated that those member of the team whom are defined as ‘key’ shall remain with the business to allow for an effective handover