Latest News | 11 June 2024

Food-on-the-go retailer to open state-of-the-art Derby facility

Bondholders:
SmartParc
HelloFresh
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Leading food-on-the-go retailer Greggs is set to create up to 600 jobs in Derby with the opening a new state-of-the-art frozen production and logistics facility.

The firm has said the new site at SmartParc SEGRO Derby will support its manufacturing and logistics network, building capacity for up to 3,500 shops in the UK.

SmartParc SEGRO Derby is a high-tech food manufacturing site at Spondon, which is already home to meal box firm HelloFresh.

Greggs, which has entered into a lease agreement for the new facility, will occupy a 23-acre plot on the campus.

Following construction by the landlord, Greggs will develop the facility and install state-of-the-art manufacturing and logistics equipment to optimise the efficiency of operations on site. The site is expected to open in late 2026 and create up to 600 jobs.

Jackie Wild, chief executive at SmartParc, said: “It is our ultimate vision that SmartParc SEGRO Derby becomes a hub for forward-thinking food businesses seeking sustainable and efficient operations, a collaborative workspace and a first-class location with excellent connectivity, while also putting their people first.

“Greggs embodies this approach, and we are immensely proud to welcome such a cherished food business to the site.”

Greggs’ strategic growth plan, announced in 2021, set out ambitious expansion targets requiring investment in significant supply chain capacity.

It currently has 2,500 shops trading and expects to open between 140 to 160 new ones this year.

The longer-term target is to have significantly more than 3,000 shops trading in the UK.

The purpose-built Derby facility will provide additional manufacturing capacity for products – including new savoury and sweet production lines .

It will also provide logistics for frozen storage and fully automated robotic shop order picking and distribution solutions.

Greggs said the facility will also have additional capacity to enable further investments to meet future category growth, innovation and development, including the capacity for at least five manufacturing platforms and the potential for new production lines to be commissioned to meet volume demand.

The site has been designed with a focus on sustainability, including the use of an onsite shared Energy Centre (a centralised heating and cooling system that recycles heat from refrigeration plants across the estate), a rainwater harvesting system, PV panels, EV charging points and a secure bike storage to help reduce local emissions.

Roisin Currie, chief executive at Greggs, said: “We are delighted to announce our new state-of-the-art facility at SmartParc SEGRO Derby.

“This purpose-built site offers significant flexibility to add new capabilities and lines as our business evolves.

“This is a significant step in our supply chain investment and will provide much-needed manufacturing and logistics support to power our ambitious growth plans.”


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