Fresh food companies dominate a new ranking of the 50 fastest-growing UK food and drink manufacturers, as the fragmented sector consolidates.
In the inaugural Grocer Fast 50, produced by Catalyst Corporate Finance, more than half operate in the fresh produce, ingredients, meat or poultry categories as large companies relentlessly buy up rivals.
The UK's fastest-growing private food and drink supplier is duck and poultry supplier Gressingham Foods, which has averaged sales growth of 65% a year over the past four years.
Catalyst's head of food and drink Simon Peacock said the buyouts were a consequence of banks' unwillingness to lend money to the smaller suppliers that dominate fresh food.
This, he said, left companies in the sector to look after themselves, fuelling a rush of consolidation. "A clear acquisition strategy has enabled businesses in more fragmented markets to take advantage of opportunities available to grow," said Peacock. "Five of the businesses in the top 10 have employed such a strategy and grown through acquisition."
Twenty of the top 50 companies grew through acquisitions, but other businesses managed to grow organically, often thanks to a consumer interest in traditional brands such as Aunt Bessie's, Crosse & Blackwell and Warburtons. The Fast 50 companies have grown an average 22% in the past three years.