Genius gluten-free bakery to expand further into frozen food sector

The UK company has acquired all operations of Chapel Foods including its gluten-free manufacturing facility in Scunthorpe, UK.

Increasing consumption of frozen foods in China & India

Roz Cuschieri, CEO, Genius Foods, said the combination of Chapel Foods' manufacturing expertise and distribution network, coupled with Genius' product innovation and investment in the site, will pave the way for future success.

“The acquisition will enable the brand to consolidate its presence in the UK and international market by meeting the market demand for various gluten-free frozen products, currently produced by Chapel Foods​,” she added.

“The frozen food products will include pies, sausage rolls and quiche.​”

Genius, with the support of Chapel Foods already launched a range of frozen fries in 2014, and since then, it has seen significant growth in the frozen food market.

Industry experts say the acquisition will enable Genius to meet increasing worldwide demand for convenience food which is gluten-free.

According to a report by Big Market Research, the frozen food market is driven by increasing consumption of frozen foods in emerging economies such as China, India and other Asian countries due to an increase in disposable income and a change in lifestyle and food habits

In its study ‘World Frozen Food Market - Opportunities and Forecasts, 2014 – 2020’, it predicts the global sector will grow at a CAGR of 4.1% during the period 2015-2020 and merger and acquisition will be a key strategy adopted by key market players to strengthen their market presence.

Europe - the largest market, followed by North America

It includes frozen ready meals, meat and poultry, sea food, potatoes, vegetables and fruits and soups with the major players being Aryzta (frozen bakery); General Mills; Kraft Foods Group; Ajinomoto Co.; Cargill; Europastry; JBS; Kellogg Company; Nestlè (frozen pizza) and Flower Foods.

“Deep frozen food products that can be stored and used over a long time period are referred to as frozen foods​,” it said.

“Retail customers mostly prefer cooked and semi-cooked ready-to-eat food, meat and soups amongst others. While business customers majorly use frozen meat, sea food, frozen pizza crust, bread, frozen dough, potatoes and vegetables as ingredients for preparing food for end customers. Geographically, Europe is the largest market, followed by North America, and developing markets including Asia Pacific and LAMEA are fast catching up​.”

The report claims an increasing number of retail chains including hypermarkets and supermarkets have bolstered the demand of frozen food in developing Asian countries.

However, lack of proper refrigeration in retail stores and inadequate distribution facilities in semi-urban and rural areas are challenges in these areas.

The developed markets will continue to grow at a moderate pace, because of consumer preference for healthy frozen foods.