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Greggs has announced it will build a purpose-built frozen production and logistics factory in Derby to boost capacity for up to 3,500 shops in the UK.

The food-to-go giant has entered into a lease agreement for the new facility to be developed at SmartParc SEGRO Derby on a high-tech food manufacturing site in Spondon.

Greggs will occupy a 23-acre plot on the campus. Following the construction of the building by the landlord, Greggs will develop the facility and install “state-of-the-art” manufacturing and logistics equipment to optimise the efficiency of operations on site.

The site is expected to open in late 2026 and create up to 600 jobs.

The factory will help Greggs meet its growth targets under its strategic growth plan, announced in 2021, with its expansion targets requiring investment in significant supply chain capacity.

At 12 May 2024, Greggs had 2,500 shops trading and it expects to open between 140-160 net new shops during 2024.

The longer-term target is to have significantly more than 3,000 shops trading in the UK.

The new purpose-built facility will provide additional manufacturing capacity for products - including new savoury and sweet production lines – as well as logistics for frozen storage and fully automated robotic shop order picking and distribution solutions from automation company Swisslog.

The facility will also have additional capacity to enable further investments to meet future category growth, including the capacity for at least five manufacturing platforms and the potential for new production lines to be commissioned to meet volume demand.

The site has been designed with a focus on sustainability including the use of an onsite shared energy centre, a rainwater harvesting system and solar panels.

Roisin Currie, Chief Executive at Greggs commented: “We are delighted to announce our new state-of-the-art facility at SmartParc SEGRO Derby. This purpose-built site offers significant flexibility to add new capabilities and lines as our business evolves. This is a significant step in our supply chain investment and will provide much-needed manufacturing and logistics support to power our ambitious growth plans.”

Jackie Wild, CEO at SmartParc said: “It is our ultimate vision that SmartParc SEGRO Derby becomes a hub for forward-thinking food businesses seeking sustainable and efficient operations, a collaborative work space and a first-class location with excellent connectivity, whilst also putting their people first. Greggs embodies this approach and we are immensely proud to welcome such a cherished food business to the site.”

Morning update

Listed CBD player Chill Brands has accused former board executives of taking the domain without authorisation before their departure.

Co-founders Trevor Taylor and Antonio Russo were removed from the company’s board at its AGM last week following pressure from activist investor Jonathan Swann of CFC Underwriting.

Today the group has said that “throughout May 2024, Mr Taylor and Mr Russo took preparatory steps to transfer the registration of the domain from the company to themselves. They did not have Board authorisation to do so.”

It said the transfer of the domain was completed on 31 May without “board authority or knowledge”.

The company said it has initiated actions to recover the ownership of the domain.

Chill Brands also said today it has also discovered that, on 3 June 2024, payments totalling almost $400k were made from the bank account of the group’s US subsidiary to Antonio Russo and Trevor Taylor’s personal US bank accounts. T

“The company’s Board is seeking a proper explanation from Trevor Taylor and Antonio Russo for these payments, and the recovery of these funds through all legal means available,” it stated.

The company’s shares are currently suspended due to an inability to provide the market with an update on its trading.

It said that, as a result of the initial findings of the investigation, it cannot yet provide a full trading and financial update and will not seek a restoration of trading of the company’s ordinary shares until it is in a position to provide such an update.

Harry Chathli, non-executive chairman of Chill Brands, said: We are totally shocked by the extent of destructive behaviour and actions of Mr Taylor and Mr Russo. It is evident that they have not acted in good faith and their actions have been motivated by self-interest rather than for the benefit of the company or its shareholders.

“The company has commenced an investigation to uncover if any professional advisers or persons had assisted them in their actions to defraud the business. Shareholders can be assured that the current Board will work unceasingly to ensure restoration of trading of shares and seek to regain the positive momentum achieved in the year to 31 March 2024.”

On the markets this morning, the FTSE 100 has opened the week down 0.3% to 8,217pts.

Risers include Just Eat, up 1.7% to 1,054p, WH Smith, up 0.9% to 1,177p and Compass Group, up 0.5% to 2,212p.

Fallers include C&C Group, down 6.9% to 157.6p, McBride, down 5.4% to 113.5p and PZ Cussons, down 2.7% to 107p.

This week in the City

A relatively quiet week in the City looks in store ahead of the kick-off of Euro 2024 on Friday.

The major news of the week is Tesco, which will issue its first quarter sales update on Friday morning.

Cake Box issues its annual results tomorrow morning.

PayPoint issues its full year results on Thursday.