Fresh prepared produce and prepared foods supplier Geest plc is launching into the ready meals market.
The company confirmed this morning that following an announcement on 16 September, it has launched a new joint venture business in one of the fastest growing areas of the fresh ready meals market. Geest RFG Fresh Cook Ltd (Fresh Cook) is a 50:50 joint venture with Rannoch Food Group Ltd (Rannochs), a specialist added-value chicken supplier.
The new business will produce ready-to-cook meals using raw ingredients - demand for which is growing rapidly. The joint venture will combine existing ready-to-cook meals business from Geest and Rannochs and is expected to generate sales of £20 million in its first full trading year in 2005.
The business will be based at one of the facilities at Geest’s Holbeach site in Lincolnshire and will create over 100 new jobs. The net asset value of Fresh Cook is £3 million at today’s date.
Commenting on the formation of Fresh Cook, Geest ceo Gareth Voyle said:
"The ready-to-cook meals sector is growing at around 25 per cent, over three times the rate of the fresh ready-meals market. The Fresh Cook venture allows Geest to develop its revenue stream in this fast growing market sector at a low capital cost, by combining two specialists in their own fields: quality chicken sourcing and processing from Rannochs together with Geest’s fresh prepared foods manufacturing and new product development expertise."
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