Greggs is set to build a purpose-built frozen production and logistics facility in Derby to help it meet demand for its rapidly growing estate.
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 where it will occupy a 23-acre plot. Following the construction of the building by the landlord, Greggs will develop the facility and install state-of-the-art manufacturing and logistics equipment.
The new 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 logistics automation company Swisslog.
It will also have additional capacity to enable further investments to meet future category growth, innovation and development, including the capacity for at least five manufacturing platforms and the potential for new production lines to be commissioned to meet volume demand, Greggs added.
The site is expected to open in late 2026 and create up to 600 jobs.
“This purpose-built site offers significant flexibility to add new capabilities and lines as our business evolves,” said Greggs CEO Roisin Currie. “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.”
The investment forms part of Greggs’ strategic growth plan which was announced in 2021 and set out ambitious targets for the business. Greggs hit the 2,500-store milestone in May 2024 and expects to open between 140 and 160 net new shops during 2024. The longer-term target is to have significantly more than 3,000 shops trading in the UK.
This ambition will also be supported by additional logistics capacity from distribution centres in Birmingham and Amesbury, which are on track to be operational by the end of 2024. A fourth production line for savoury rolls and bakes at its Balliol Park site in Newcastle is also set to boost production by 35%.
Sales are proving strong at the food-to-go business with a 19.6% rise reported for the 2023 financial year and a strong start to 2024. Transaction volume growth so far in 2024 was said to have been supported by improvements in delivery sales, evening trade, and participation in the Greggs App – more than 50% of transactions were being scanned by the end of last year.