Cranswick’s diversification into dog food has secured a major win, with a supply partnership deal with leading retailer Pets at Home.
It comes as a £9 million investment in the Lincolnshire plant, bought in early 2022, is made to increase capacity, revealed as the annual results were published. Revenues are up 15 per cent to £2.3 billion for the food producer in a 33rd consecutive year of growth.
FTSE-listed Cranswick will initially supply Pets at Home with dry dog kibble under two existing brands, Wainwrights and Step Up to Naturals, from its facility at Lodge Farm, west of Lincoln.
Read more: Full year results for Cranswick
This will place Pets at Home as the lead strategic customer from the facility. Supply is due to begin in the second half of the year with production and stock building taking place over the summer.
Jim Brisby, chief commercial officer,at Hull-headquartered Cranswick Plc, said: “This agreement cements our strategic ambition to grow our share in the pet food business and represents a significant growth opportunity for the group. Cranswick Pet Products will continue to be supported by future capital expenditure in new capacity and capability, helping us deliver assured quality, supply, and market leading innovation to Pets at Home.”
The current investment will see 40 per cent uplift in capacity “delivering scope for further growth,” with the board eyeing the pet food market’s £3.7 billion worth, up 14 per cent year-on-year.
Cranswick entered the market with the buy-out of Grove Pet Foods Ltd in February 2022, with the supply deal described as “an exciting next step in the development of this part of the business”.
The pet food market also further supports the wider company’s farm to fork integration strategy, helping to ensure there is no waste.
Lisa Miao, chief operating officer at Pets at Home, said: “We put pet welfare at the heart of everything we do and are passionate about developing the very best products for our own label ranges, with a clear focus on delivering high quality, nutritional pet food that offers great value to the consumer.
“Partnering with Cranswick will help secure supply chain and customer availability, while continuing to drive innovation to excite and inspire the pet owners of today and tomorrow, all underpinned by our sustainability ambitions. We look forward to working closely with the team and developing our long-term relationship.”
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