Chilled food company is set for expansion

Jul 3 2010 by Iain Laing, The Journal

A CHILLED food company on Teesside says it is gearing up for “significant” expansion after growing its turnover by a third in three years.

SK Chilled Foods, which employs 500 on Teesside, makes own-label Indian, Chinese, American and Mexican-style fresh snacks for retailers and supermarkets.

New customers – and a recessionary shift in consumer spending habits away from eating out – has meant the 15-year-old company turned over £40m last year.

The firm, which has its base in Wynyard, wants to expand its Middlesbrough sites at South Bank and Riverside Park.

Managing director Jeremy Faulkner said: “We have won new business with major retailers and have taken on about 100 staff in the last three years.

“We now employ 500 on Teesside, we’re continuing to grow and we hope there will be more opportunities for further job creation in the near future.

“We are looking at significant expansion plans by mid-2011 that will include a combination of building work and new equipment and are working with outside people on ways of funding it. If we’re successful in attracting funding, the business can continue to grow.”

The food industry, he said, often weathered a recession better than other sectors. “People move from eating in restaurants to takeaways, and the third element is buying food from the supermarket for entertaining,” added Mr Faulkner.

“People are prepared to trade up to premium products, but at the same time they look for good value – the trick for us is to provide that, and not to get caught in the middle. We all look for the best deals on the supermarket shelves.

“Dealing with the major supermarkets is a good place for us to be in times of economic pressure. Our area of the market has seen growth in the recession and we’re confident that will continue.”

American and Mexican-style products such as wedges, burritos and enchiladas are the company’s fastest- growing area, alongside snacks from bhajis and spring rolls to samosas.

The company, which is owned by American company the Entrepreneurial Food Group, is talking to Tees Valley Unlimited, Middlesbrough Council, Redcar and Cleveland Council, One North East and SJA Business Consultancy to look at ways of taking the expansion plans forward.