ABP expands frozen food production capabilities

Anglo Beef Processors (ABP) aims to expand its foothold in frozen manufacturing through the acquisition a major Scottish sausage manufacturer.

The Glasgow plant was formerly owned by Freshbake Foods, which went into administrative receivership on 22 June 2004. Situated in east Glasgow, the company, which employs 230, has been operating under joint administrative receiver Iain Bennet from PricewaterhouseCoopers.

The modern Glasgow manufacturing facility is a major supplier of frozen sausages to many of the UK's leading supermarkets and food service companies. According to an Ireland Online report, the amount paid is undisclosed.

"We have been enthusiastic to gain a foothold in sausage manufacture, and the Glasgow plant gives us a base from which to quickly expand production in both frozen and fresh sausage manufacture," said an ABP spokesperson in a statement.

"We see great potential in this sector of the food market. The existing customer base has welcomed our acquisition."

ABP is the UK subsidiary of Irish Food Processors. The acquisition should further strengthen the group's involvement in frozen foods, a sector of food production that is still growing.

According to Euromonitor, frozen processed poultry has registered strong growth in recent years, stimulated by its fulfilment of major consumer demands for healthier, premium products.

Between 1998 and 2003, frozen processed poultry retail value sales grew by 27 per cent in western Europe and by 30 per cent in Scandinavia, with the vast majority of these increases coming at the expense of frozen processed red meat, whose value sales growth in western Europe over the same period was just 6 per cent.

In addition, the European ready meals market encompassing fresh, frozen and chilled, has become a major growth sector of the European food economy, and now accounts for annual consumption in excess of 480,000 tonnes.

The market has grown by 20 per cent in the UK over the past five years, and the trend shows no sign of having peaked.