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Greencore
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Greencore Group plc is a food company in Ireland. It was established by the Irish government in 1991, when Irish Sugar was privatised, but today Greencore's products are mainly convenience foods, not only in Ireland but also in the United Kingdom. A major supplier to British and Irish supermarkets, Greencore is the largest sandwich manufacturer in the world.[3] It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index.
Key Information
History
[edit]The company was established in 1926 in Carlow as a private enterprise known as the Irish Sugar Manufacturing Company, Limited. The Sugar Manufacture Act, 1933[4] was passed to promote self-sufficiency in sugar manufacture; this Act was brought on by a crisis in the industry and resulted in the nationalisation of sugar manufacture. Factories were built in Mallow, Thurles and Tuam, and the company became Cómhlucht Siúicre Éireann, Teoranta, the Irish for Irish Sugar Company, Limited. When run by Michael Joe Costello, Irish Sugar introduced the first electronic computer into Ireland in 1957, buying it from Dora Metcalf.[5] The Thurles and Tuam factories were closed in the early 1980s after a rationalisation became necessary, and the company decided to concentrate manufacture at its Carlow and Mallow factories.[6]
In February 1990, the then managing director, Chris Comerford, was found to have received £9 million when the company acquired the 49% shareholding in a subsidiary that it did not already own. Comerford resigned but four years of litigation between the company and Comerford followed.[7][8]
The Sugar Act, 1991[9] privatised the entity and it became Greencore at that time. The Act was passed as the company had diversified beyond being a sugar-manufacturing company into other food products. That year 55% of the group was listed on the Irish Stock Exchange, and over the years since additional placements have led to almost 100% of the shares being in private hands. However, the Irish Government retains a special share, with a face value of EUR 1.26, in order to prevent the Irish sugar quota being sold without its consent.[1]
In 2005 the company announced that it would close its factory in Carlow, ceasing production on 11 March. In March 2006 it was announced that the last remaining factory would close in Mallow, and this closure occurred on 12 May. The reason indicated for these closures has been the reform of European Union policies on sugar which reduced the quotas and subsidies available and therefore making its manufacture unprofitable in Ireland.[10] The company took a charge of €9m to its profit in 2008 when it was alleged that the former financial controller of the Mineral Water business had concealed costs.[11]
In October 2009 Nordzucker announced that it had bought Greencore's 50% stake in its joint venture SugarPartners. As part of the deal, Nordzucker acquired the Siucra, McKinney and Castle brands from the company.[12] On 10 November 2010, the European Court of Auditors found that the closure of the last Greencore sugar plant in Mallow in 2006 may not have been necessary.[13]
The company was due to merge with Northern Foods in 2011 to form Essenta Foods, to be headquartered in Dublin but listed on the London Stock Exchange.[14] The deal, however, fell through after businessman Ranjit Singh Boparan outbid Greencore to win the approval of Northern Foods shareholders, on 21 January 2011.[15] On 12 July 2011, Greencore announced it intended to buy Uniq plc. The deal closed in November 2011, with Uniq resultantly delisting from the London Stock Exchange.[16] On 25 July 2016, the company acquired The Sandwich Factory Holdings Ltd for £15m from Cranswick plc.[17][18] On 14 November 2016, Greencore announced it would acquire US-based Peacock Foods for $747.5m, significantly expanding its presence in the country.[19]
The health of Greencore's U.S. business was questioned by investors as a result of a late August 2017 fear that Starbucks had backtracked on a contract at the coffee giant's Jacksonville facility in Florida. Brokerage house Cantor Fitzgerald became the first firm to lower its investment rating of Greencore, stating that the stock's fall was caused by "some underlying event in the US."[20]
In October 2018 Greencore announced that it would sell its U.S. business to Hearthside Food Solutions for £817 million.[21]
In June 2021 Patrick Murray, a manager at Greencore in Dundee, Scotland, was found to have racially abused an English employee and the company was fined £13,000.[22]
In September 2022, Dalton Philips became CEO of Greencore.[23]
In June 2024, Greencore voluntarily and proactively recalled 45 of its products following an outbreak of Shigatoxigenic E. coli in the United Kingdom in major supermarket chains. Although no testing of their products has yet indicated the presence of E. coli in them, Greencore wanted to take precautionary steps to minimize harm to consumers and spread information about the outbreak.[24]
In April 2025, the company agreed the acquisition of Bakkavör for £1.2 billion with the deal subject to shareholder and regulatory approval.[25]
See also
[edit]References
[edit]- ^ a b c d "Annual Report 2024" (PDF). Greencore. Retrieved 10 February 2025.
- ^ "Greencore". Greencore. Retrieved 10 February 2025.
- ^ Knight, Sam (24 November 2017). "How the sandwich consumed Britain". The Guardian. Retrieved 6 June 2020.
- ^ Sugar Manufacture Act, 1933 Archived 2 May 2005 at the Wayback Machine
- ^ Monro, Mary (16 May 2022). "Dora Metcalf: Twentieth Century Mathematician and Entrepreneur – Mary Monro". Women's History Network. Retrieved 17 May 2022.
- ^ "Carlow sugar factory to close today". RTE. 26 January 2007. Retrieved 21 April 2017.
- ^ "Bitter row sparked scandal at Greencore: The Greencore sale, 1991". The Irish Times. 13 November 2013. Retrieved 14 November 2022.
- ^ "Greencore improves despite scandal". The Independent. 16 December 1992. Retrieved 14 November 2022.
- ^ Sugar Act, 1991 Archived 4 December 2005 at the Wayback Machine
- ^ "Ex-Greencore workers protest outside Mallow factory over redundancy". Breaking News. 23 September 2006. Retrieved 13 September 2013.
- ^ "Scandal could cost Greencore millions". The Grocer. 28 June 2008. Retrieved 14 November 2022.
- ^ "German firm takes full sugar control". RTÉ News. 27 October 2009. Retrieved 13 September 2013.
- ^ "Greencore sugar plant closure unnecessary? - RTÉ News". Rte.ie. 10 November 2010. Retrieved 22 December 2012.
- ^ "Greencore and Northern Foods to merge - RTÉ News". Rte.ie. 17 November 2010. Retrieved 22 December 2012.
- ^ "Greencore still wants Northern Foods merger - RTÉ News". Rte.ie. 24 January 2011. Retrieved 22 December 2012.
- ^ Kavanagh, Michael (12 July 2011). "Greencore agrees £113m Uniq takeover". FT.com. Retrieved 22 December 2012.
- ^ "Announces £15m Bolt-On Acquisition In UK Food To Go". Greencore. 25 July 2016. Retrieved 21 April 2017.
- ^ Michelle Perrett (25 July 2016). "Food manufacturer acquires sandwich business for £15M". Foodmanufacture.co.uk. Retrieved 21 April 2017.
- ^ "Greencore to acquire US group Peacock Foods for $748m". FT. 14 November 2016. Retrieved 21 April 2017.
- ^ "Broker downgrades Greencore on concern over US business - Independent.ie". Independent.ie. Retrieved 3 September 2017.
- ^ Abboud, Leila (15 October 2018). "Greencore quits US two years after expansion push". Financial Times. Retrieved 15 October 2018.
- ^ Abboud, Leila (4 June 2021). "English delivery driver working in Scotland who was called an 'English p***k' by his boss wins £13,000 in race discrimination payout after colleague told him 'you'll be going back on the bus like your football team'". The Times. Retrieved 4 June 2021.
- ^ "Greencore names former Morrisons boss Dalton Philips as CEO". The Grocer. 13 May 2022. Retrieved 15 November 2022.
- ^ "Greencore Group recalls sandwiches, wraps and salads because of possible contamination with E. coli | Food Standards Agency". www.food.gov.uk. Retrieved 15 June 2024.
- ^ Kelly, Maxine (2 April 2025). "Greencore agrees £1.2bn deal for UK ready meal rival Bakkavor". Financial Times. Retrieved 23 April 2025.
External links
[edit]Greencore
View on GrokipediaHistory
Founding and Privatization
Greencore's origins trace back to the nationalization of sugar production in Ireland during the early 20th century. In 1933, the Irish government passed the Sugar (Manufacture) Act to promote domestic self-sufficiency in sugar amid economic challenges and reliance on imports. This legislation led to the establishment of Comhlucht Siúcra Éireann Teoranta (Irish Sugar Company Limited), a state-owned entity tasked with acquiring, erecting, and operating sugar factories for processing sugar beet. The company began operations with factories in Carlow, Mallow, Thurles, and Tuam, focusing on beet sugar production to support local agriculture and reduce foreign dependency.[6][7] By the late 1980s, as part of broader economic reforms, the Irish government pursued privatization of state assets, including Irish Sugar. The Sugar Act of 1991 facilitated this transition by authorizing the exchange of shares held by the Minister for Finance in Siúcra Éireann, c.p.t., for shares in a new holding company, effectively privatizing the operations. This resulted in the formation of Greencore Group plc in 1991, with headquarters established in Dublin, Ireland. Initially, Greencore retained Irish Sugar's core focus on sugar processing and related agricultural products, such as beet sourcing and by-products like animal feed.[8][3] A key early milestone came shortly after privatization, when the Irish government floated 55% of Greencore's shares on the Irish Stock Exchange in 1991, marking one of the first major privatizations of a semi-state body. This listing provided public investment opportunities and allowed employees and beet growers to purchase shares at a discount. Early revenue was predominantly derived from sugar beet processing, reflecting the company's foundational role in Ireland's agricultural sector.[9][10][11]Diversification into Convenience Foods
In 2001, Greencore marked its strategic entry into the convenience foods sector through the acquisition of Hazlewood Foods plc, a UK-based manufacturer specializing in chilled prepared products such as sandwiches, ready meals, quiches, and chilled pizzas.[12] This £258 million deal represented a pivotal shift from its traditional sugar processing roots, enabling Greencore to build expertise in the fast-growing market for ready-to-eat and convenience items tailored for retail and foodservice channels.[13] The acquisition integrated Hazlewood's operations, including its focus on product innovation and supply to major UK retailers, laying the foundation for Greencore's expansion in own-label chilled foods.[14] As part of this pivot, Greencore began phasing out its sugar operations in the early 2000s to concentrate resources on the higher-margin convenience foods business. By 2006, the company had fully divested its sugar assets, including the closure of its last remaining processing plant in Mallow, County Cork, Ireland, which effectively ended its involvement in the Irish sugar industry and allowed a complete refocus on the convenience sector.[15] This divestment was driven by changes in the European Union sugar regime and aligned with Greencore's strategy to capitalize on the rising demand for prepared foods amid shifting consumer preferences toward convenience.[16] Key milestones in this diversification included Greencore's additional listing on the London Stock Exchange in 2003, which enhanced its visibility and access to capital markets for further UK-focused growth. The company also emphasized the development of own-label products for major UK retailers, driving expansion in the ready-to-eat meals segment through innovative offerings like premium sandwiches and salads. Establishment of initial UK manufacturing sites, such as those in Nottingham (Manton Wood) and Warrington, supported this growth by enabling efficient production of high-volume chilled convenience items close to retail distribution networks.[17][18]Major Acquisitions and Expansion
In the early 2010s, Greencore pursued strategic acquisitions to strengthen its position in the UK convenience foods market. A key deal was the 2010 proposed merger with Northern Foods, which would have integrated Northern's chilled foods division into Greencore's operations, creating a major player in ready meals and sandwiches with combined annual sales of around £1.7 billion.[19] Although the merger was ultimately abandoned in favor of a competing bid, it highlighted Greencore's focus on expanding its chilled prepared foods capabilities during this period.[20] In 2011, Greencore completed the acquisition of Uniq plc for £113 million in cash, significantly broadening its UK footprint in chilled convenience products, including dairy desserts such as cheesecakes and chilled pies.[21] This move added manufacturing facilities and enhanced Greencore's supply to major retailers, contributing to revenue growth from approximately £728 million in fiscal year 2010 (equivalent to €856 million at prevailing exchange rates) to £804 million by fiscal year 2011.[22][23] Greencore's international expansion accelerated in 2016 with the $747.5 million acquisition of US-based Peacock Foods, marking its entry into the North American ready meals and convenience foods sector.[24] Peacock specialized in frozen breakfast items, chilled meal kits, and salads for brands like Jimmy Dean and Kraft Heinz, quadrupling Greencore's US revenue base and integrating operations that led to a workforce exceeding 13,000 employees by year-end.[25] This deal drove overall revenue to £1.48 billion in fiscal year 2016, up 10.6% from the prior year, while solidifying Greencore's status as the world's largest producer of fresh pre-packaged sandwiches, with annual output nearing 800 million units.[26][27]Recent Developments and Restructuring
In response to the COVID-19 pandemic, Greencore adapted its supply chain and operations in 2020 to maintain full production capacity across its network, achieving a 98.4% on-time delivery rate despite disruptions.[28] The company implemented stringent safety protocols, including social distancing, PPE distribution, and temperature screening at its 21 UK production sites, while utilizing the UK government's Job Retention Scheme to furlough affected staff and incurring £21.3 million in related costs.[28] Initial lockdowns led to a sharp decline in food-to-go demand, prompting inventory adjustments and a £2.9 million impairment, but as restrictions eased, volumes for sandwiches and ready meals rebounded strongly in the second half of the year, supporting overall recovery.[28][29] From 2021 to 2023, Greencore pursued restructuring under the Better Greencore change programme to streamline operations and enhance efficiency, delivering approximately £30 million in annualised cost savings through the reduction of around 250 salaried roles and the elimination of 100 vacant positions.[30] This initiative included exiting sub-optimal customer contracts and realigning the organisational structure to prioritise UK market focus, with exceptional charges totalling £25.7 million over the period.[30] Complementing these efforts, the Greencore Way framework—emphasising operational excellence, people development, and sustainability—drove improvements in manufacturing processes, including SKU rationalisation and pilot programmes at key sites to reduce waste and labour costs.[31][30] Following the 2018 divestment of its US business to Hearthside Food Solutions for $1.075 billion, which enabled a £509 million capital return to shareholders, Greencore refocused resources on its core UK and Ireland convenience foods operations.[32][3] In the third quarter of fiscal year 2025, Greencore reported robust performance with revenue increasing 9.9% to £511.1 million, propelled by strong volume growth and an operational service level of 99.3%, prompting an upward revision to its full-year adjusted operating profit guidance of around £125 million.[4] On October 7, 2025, the company issued a Q4 FY25 trading update indicating approximately 8% revenue growth for the full year and confirming the adjusted operating profit guidance of £125 million, with expected FY25 revenue of around £1.95 billion.[33] Greencore plans to announce its full FY25 results on November 18, 2025.[34] In May 2025, Greencore announced a proposed £1.2 billion acquisition of Bakkavor Group plc via a scheme of arrangement, aiming to create a leading UK convenience foods platform with enhanced scale in foodservice and retail channels.[35] The transaction, which would see Greencore shareholders owning about 56% of the combined entity, advanced in November 2025 when the UK Competition and Markets Authority accepted in principle Greencore's remedy to divest its Bristol chilled soups and sauces site, paving the way for completion in early 2026 pending final approvals.[5][36]Operations
Manufacturing Facilities and Supply Chain
Greencore operates 16 manufacturing sites across the United Kingdom, with its corporate headquarters located in Dublin, Ireland.[3] These facilities specialize in the production of convenience foods, including eight units dedicated to sandwiches and food-to-go items, five for chilled ready meals, three for salads, and two for sushi.[2] Key examples include the Atherstone site, which focuses on sandwiches, wraps, toasties, and baguettes, and the Warrington facility, which produces chilled ready meals.[37] The company maintains these sites to support high-volume, fresh production, with an emphasis on chilled products that typically have a 3-5 day shelf life to ensure quality and freshness.[30] Complementing its manufacturing network, Greencore utilizes 17 distribution centers in the UK to facilitate just-in-time delivery to retailers.[3] These centers, including regional hubs in Hatfield, Tamworth, and Glasgow, enable over 10,500 direct-to-store deliveries daily, optimizing logistics for perishable goods.[38] This infrastructure supports efficient supply chain operations, particularly for short-shelf-life items requiring rapid turnover.[39] Greencore's supply chain emphasizes vertical integration, sourcing approximately 90% of its ingredients from UK-based suppliers, including around 300 direct ingredient providers.[30] This approach minimizes transit times for chilled products and enhances control over quality in the production of items like sandwiches, which reached an annual volume of 748 million units (including other food-to-go products) in fiscal year 2024.[40] Following its 2023 restructuring under the Better Greencore programme, the company has increased automation across production processes to boost efficiency and reduce operational costs.[30]Product Portfolio
Greencore's product portfolio primarily consists of convenience foods designed for quick preparation and consumption, with a strong emphasis on chilled items that prioritize freshness and quality ingredients. The company specializes in a diverse range of chilled products, including sandwiches, salads, sushi, soups, sauces, quiches, and pasta salads, all produced to meet the demands of busy consumers seeking on-the-go meals.[41] As the world's largest producer of fresh pre-packaged sandwiches, Greencore manufactures these items using formulations that focus on natural, additive-free compositions to ensure taste and nutritional appeal.[2] It supplies a substantial portion of the UK sandwich market, holding a leading position through own-label partnerships with major retailers.[2] Complementing its chilled offerings, Greencore maintains frozen and ambient product lines that extend convenience to longer-shelf-life options, including ready meals, dips, and sauces provided to own-label brands for retail distribution.[42] These categories feature items like frozen Yorkshire puddings and ambient cooking sauces, enabling broader menu solutions for customers while maintaining the company's commitment to high-quality, versatile foods.[43] In terms of innovations, Greencore has expanded its portfolio with plant-based options introduced as part of its 2022 sustainability efforts, aiming to rebalance recipes toward more sustainable protein sources without compromising flavor or texture.[44] The company also offers premium ranges, such as meal kits tailored for foodservice applications, highlighting its focus on evolving consumer preferences for health-conscious and environmentally friendly convenience foods.[41]Customer Base and Market Presence
Greencore's primary customers are the major supermarkets in the United Kingdom, including Tesco, Marks & Spencer, Sainsbury's, and others, which form the core of its revenue stream through own-label convenience foods such as sandwiches, salads, and ready meals.[45][46] The company supplies all leading UK supermarkets, along with convenience stores, discounters, and travel retail outlets, enabling it to deliver products to over 10,500 stores daily via direct-to-store deliveries.[34] Additionally, Greencore serves foodservice partners, including coffee shops and other operators, diversifying its client base beyond pure retail channels.[47] The company's market presence is predominantly in the UK, where it is expected to generate the vast majority of its revenue—approximately £1.95 billion for fiscal year 2025 (forecast as of October 2025)—through its 16 manufacturing sites and 17 distribution centers focused on chilled and convenience foods.[48] Headquartered in Dublin, Ireland, with administrative operations there, Greencore's manufacturing is focused in the UK, though the UK remains its dominant market. Following the sale of its US business in 2018, the company has concentrated resources on these core regions to strengthen its position in the European convenience foods sector.[47] In 2025, Greencore holds a leading position in the UK chilled prepared foods market, producing around 748 million sandwiches and food-to-go items annually, along with other categories such as sushi and ready meals, which underscores its scale and influence in the sector. The proposed £1.2 billion acquisition of Bakkavor Group plc, announced in April 2025 and expected to complete in early 2026 pending regulatory approval, aims to further expand this presence by combining operations to create a larger UK-focused convenience food entity with enhanced market reach to additional retailers like Waitrose.[5][47] This deal, cleared by the UK Competition and Markets Authority in November 2025 after remedies including the sale of a Bristol facility, positions Greencore to capture greater share in food-to-go and chilled categories amid rising consumer demand.[45]Corporate Structure
Leadership and Governance
Greencore's leadership is headed by Chief Executive Officer Dalton Philips, who assumed the role in September 2022. Philips brings extensive experience in the food and retail sectors, having previously served as CEO of Wm Morrison plc, a FTSE 100 supermarket chain, from 2010 to 2015, and as Group CEO of daa plc, an airports and travel retail group, from 2017 to 2022. His earlier career included senior roles at Loblaw Companies Limited as COO and positions at the Boston Consulting Group, Jardine Matheson, and Walmart. Under Philips' leadership, Greencore pursued a recommended acquisition of Bakkavor Group plc, announced in May 2025, valued at approximately £1.2 billion. On November 7, 2025, the UK's Competition and Markets Authority accepted remedies, including the divestiture of a sauces facility, clearing a key regulatory hurdle with completion targeted for early 2026, though the deal remains pending final approvals as of November 2025.[49][50][5] The executive team supports Philips in key areas, including Catherine Gubbins as Chief Financial Officer since February 2024, who previously held the CFO role at daa plc for nine years and spent 16 years at PwC Ireland in assurance and advisory. Lee Finney, appointed Chief Operating Officer in October 2022, oversees the end-to-end supply chain, technology, and sustainability, drawing on his global experience as a VP and Chief Supply Officer across regions including the UK, Europe, North America, and Australasia. Other members include Andy Parton as Chief Commercial Officer since 2014, with prior roles at Aldi and PepsiCo focused on commercial strategy and procurement.[49][51] The Board of Directors comprises 10 members, blending executive and non-executive roles to ensure balanced oversight. Leslie Van de Walle serves as Non-Executive Chair since December 2022, bringing extensive leadership across multiple sectors. Non-executive directors include Linda Hickey, Alastair Murray (appointed February 2023 with food industry expertise), Anne O’Leary, Helen C. Rose, and Hetal Shah (appointed March 2023). The board emphasizes diversity, with 40% women members, including Gubbins, Hickey, O’Leary, and Rose. Damien Moynagh acts as Group General Counsel and Company Secretary. Recent appointments, such as Alastair Murray and Hetal Shah post-2023 restructuring, incorporate expertise in food industry operations and supply chain management to strengthen strategic resilience.[52][52] Greencore adheres to the 2018 UK Corporate Governance Code, as reflected in its board matters reserved and committee terms of reference, which emphasize effective leadership, entrepreneurial decision-making, and compliance monitoring. The board operates through committees including Audit & Risk, Nomination & Governance, Remuneration, and Sustainability to oversee risk, strategy, and ethical practices. Annual general meetings for shareholders are held in Dublin, Ireland, with the 2025 AGM taking place on 30 January at the Maldron Hotel Dublin Airport.[53][54][55]Financial Performance
Greencore's financial performance from fiscal year 2020 to 2025 has shown resilience amid economic challenges, including inflation and supply chain disruptions, with a focus on cost management and strategic disposals. In FY24 (ended September 2024), the company reported revenue of £1,807.1 million, representing a 5.6% decline from £1,913.7 million in FY23, primarily due to the exit from low-margin contracts and the disposal of Trilby Trading Limited.[56] This decline was partially offset by inflation recovery and modest volume growth. Trailing twelve-month revenue stood at $2.38 billion as of March 2025, reflecting ongoing adjustments in the UK-focused portfolio.[57] Profitability improved notably in FY24, with adjusted EBITDA rising 15.7% to £153.7 million from £132.8 million in FY23, driven by gross margin expansion to 33.2% through efficiency initiatives and input cost stabilization.[56] Adjusted operating profit increased 27.8% to £97.5 million, achieving a margin of 5.4%. Net income for FY24 grew 29% to £46.3 million from £35.9 million in FY23, despite persistent cost pressures from labor and energy inflation.[56] These gains underscore Greencore's operational leverage in the convenience foods sector. Looking to FY25, Greencore projects revenue of approximately £1.95 billion, supported by strong momentum including a 9.9% revenue increase to £511.1 million in Q3 FY25, with underlying volume growth of 1.9%.[33] The company anticipates adjusted operating profit of approximately £125 million as of the Q4 trading update in October 2025, bolstered by net new business wins and service levels exceeding 99%.[34] Debt reduction efforts, initiated post the 2018 US business exit and continued through disposals, have strengthened the balance sheet, with net debt (pre-IFRS 16) falling to £148.1 million in FY24 from £154.0 million in FY23, achieving a leverage ratio of 1.0x adjusted EBITDA.[56][40]| Key Financial Metrics (FY23 vs. FY24) | FY23 (£m) | FY24 (£m) | Change |
|---|---|---|---|
| Revenue | 1,913.7 | 1,807.1 | -5.6% |
| Adjusted EBITDA | 132.8 | 153.7 | +15.7% |
| Adjusted Operating Profit | 76.3 | 97.5 | +27.8% |
| Net Income | 35.9 | 46.3 | +29% |
