Rescue bakery works to cook up healthy future

Jan 6 2009 by Chris Knox, The Journal

A BAKERY that was saved from closure last year has high hopes for the future despite seeing turnover drop after it lost a distributor.

The new owner of Tindale & Stanton, of Burnopfield in County Durham, expects its sales to drop from £12m to £7m as a result of ending a contract with one of its main customers.

Peter Frankland, who bought the assets of the bakery after it went into administration last July, said he had been forced to drop the customer, a discount store chain he declined to name, from his books as it was looking to price its pies and pasties at what he describes as “unreasonably” discounted rates.

Despite the contract loss and the gloomy economic climate, Mr Frankland expects the firm to maintain its turnover this year and he is now in advanced talks with a major supermarket chain to have his products on its shelves in the North East.

Despite shedding 150 jobs when he took over the business, Mr Frankland, who set up new company Hobson Foods to buy the assets, does not expect further losses, but said the company had taken on a handful of new workers since the summer.

He is also planning to rebrand a number of the bakery’s products, as well as increase its vegetarian output – which currently makes up 25% of the business – and is in talks with leading food brand Quorn to increase the amount it manufactures for the company.

He said: “There have been a number of changes in the summer and we have resolved a number of issues that were affecting the company, namely our problems with one of our distributors.

“We expected our sales to drop to around £7m as a result, but are confident that we can strengthen our brand and are working to add a number of new distributors to our list.”

The firm is also working on new pies with a reduced fat content and is keen to tap into more health- conscious markets. Mr Frankland said: “Although it is fair to say that you can’t make a pie that’s good for you, there are definitely opportunities to make some of our products healthier.”

There have been changes in the summer and we have resolved a number of issues