Bakkavör
{{Short description|Food manufacturing company}}
{{EngvarB|date=February 2019}}
{{Use dmy dates|date=February 2019}}
{{Infobox company
| name = Bakkavör Group plc
| logo = Bakkavör.svg
| logo_size = 200px
| caption =
| type = Public
| traded_as = {{lse|BAKK}}
FTSE 250
| genre =
| fate =
| predecessor =
| successor =
| foundation = {{start date and age|1986}}
| founder =
| defunct =
| location_city = London
| location_country = England, UK
| locations = 46
| area_served = {{ubl|United Kingdom|Spain|France|United States|China (including Hong Kong)}}
| key_people = {{ubl|Simon Burke{{cite web |title=Board of Directors |url=https://www.bakkavor.com/about-us/leadership/group-board/default.aspx |website=Bakkavor.com |accessdate=11 June 2018}}|(Chairman)|Mike Edwards|(Chief Executive Officer)}}
| industry = Food manufacturing
| products = {{hidden || ta1=left| {{ubl|Ready meals|soups|sauces|prepared fruits and vegetables|salads|desserts|dips|pizzas}}}}
| services =
| revenue = {{increase}}£2,292.7 million (2024){{cite web|url=https://s28.q4cdn.com/357092721/files/doc_financials/2024/q4/FY-2024-results-statement_vFINAL.pdf|title=Annual Results 2024|publisher=Bakkavör|access-date=4 March 2025}}
| operating_income = {{increase}}£113.6 million (2024)
| net_income = {{increase}}£55.7 million (2024)
| aum =
| assets =
| equity =
| owner =
| num_employees = c.17,450 (2025){{cite web |title=About us |url=https://jobs.bakkavor.com/content/About-Us/?locale=en_GB|publisher=Bakkavör|accessdate=9 February 2025}}
| parent =
| divisions = Meals, Desserts, Pizza & Bread, Salads
| subsid =
| homepage = {{URL|https://www.bakkavor.com }}
| footnotes =
| intl =
}}
Bakkavor Group plc (originally Bakkavör) is an international food manufacturing company specialising in fresh prepared foods. The group's head office is in London, England. Bakkavor operates 46 factory sites in the UK, US and China.{{Cite web |last=Bakkavor |date=2021 |title=Bakkavor Annual Report 2021 |url=https://s28.q4cdn.com/357092721/files/doc_financials/2021/ar/Bakkavor-Annual-Report-2021.pdf}} It is listed on the London Stock Exchange{{cite web|url=https://www.londonstockexchange.com/stock/BAKK/bakkavor-group-plc/our-story|title=Bakkavör: our story|publisher=London Stock Exchange|accessdate=20 June 2020}} and is a constituent of the FTSE 250 Index.{{cite web|url=https://research.ftserussell.com/products/index-notices/home/getnotice/?id=2606858|title=RPS Group (UK): Constituent Deletion - Update: Changes in FTSE UK Index Series|date=18 January 2023|access-date=20 January 2023}}
History
Bakkavör was founded in 1986 by the two brothers Ágúst and Lýður Guðmundsson to manufacture and export cod roe to Scandinavia.{{cite book|title=The Icelandic Financial Crisis: A Study into the World's Smallest Currency Area and its Recovery from Total Banking Collapse|first1=Ásgeir |last1=Jónsson|first2= Hersir|last2=Sigurgeirsson|page=71|publisher=Palgrave Macmillan|year=2016|isbn= 978-1137394545}} In 1993 the company became the first production company in Iceland to obtain a ISO:9002 certification for quality assurance.{{Cite web |title=Gæðamál Bakkavör hlýtur viðurkenningu |url=https://www.mbl.is/greinasafn/grein/105954/ |access-date=2023-03-13 |website=www.mbl.is |language=is}}
By 1997 the company had expanded into Scandinavian and European markets selling cod and lumpfish roe. By October 2000, Bakkavor had an annual turnover of over 4.5 billion ISK.{{Cite web |title=Morgunblaðið - Morgunblaðið C - Viðskiptablað Morgunblaðsins (12.10.2000) - Tímarit.is |url=https://timarit.is/page/1981057?iabr=on#page/n3/mode/1up/search/bakkav%C3%B6r%20wine%20&%20dine |access-date=2023-03-14 |website=timarit.is}}
They expanded the business by selling convenience foods. The company acquired Katsouris Fresh Foods in 1997, Wine & Dine in 2000, and Geest in 2005. In early 2003, the company sold its Icelandic components to Fram Foods ehf. and began focusing on the UK market.{{Cite web |title=Morgunblaðið - 292. tölublað (28.10.2003) - Tímarit.is |url=https://timarit.is/page/3482616?iabr=on#page/n12/mode/1up/search/bakkav%C3%B6r |access-date=2023-03-14 |website=timarit.is}} By 2005 the company had over 13,000 employees.{{Cite web |title=Frjáls verslun - 5. tölublað (01.05.2005) - Tímarit.is |url=https://timarit.is/page/6259542?iabr=on#page/n129/mode/1up/search/bakkav%C3%B6r%20wine%20&%20dine |access-date=2023-03-14 |website=timarit.is}}
After the 2008 financial crisis, Bakkavör was heavily indebted,{{Cite web|title = Icelandic tycoons could regain control of empire built on debt|url = https://www.theguardian.com/business/2010/mar/08/gudmundsson-brothers-bakkavor-iceland-crisis|website = The Guardian|accessdate = 11 September 2015|first = Simon|last = Bowers| date=8 March 2010 }} forcing the Guðmundsson brothers into emergency talks with the company's bondholders.
The founding brothers repurchased a major stake in Bakkavör from their investment company, Exista, in 2009.{{Cite web|title = Deloitte under scrutiny over sale of Bakkavor stake|url = https://www.telegraph.co.uk/finance/newsbysector/banksandfinance/6300724/Deloitte-under-scrutiny-over-sale-of-Bakkavor-stake.html|accessdate = 11 September 2015|first = Rowena|last = Mason| date=11 October 2009 }} The company delisted from the NASDAQ OMX in Iceland in 2010 and became a private limited company.{{cite press release|url=https://globenewswire.com/news-release/2010/03/22/159572/0/en/Shareholders-meeting-of-Bakkav%C3%B6r-Group-hf-on-26-March-2010.html|title=Shareholders' meeting of Bakkavör Group hf on 26 March 2010|date=22 March 2010|publisher=Global Newswire|accessdate=2 March 2018}} Lýður and Ágúst Guðmundsson faced fraud charges in Iceland in 2012 relating to their ownership of Exista.{{Cite web|title = Icelandic sandwich tycoon Lydur Gudmundsson faces fraud charges|url = https://www.theguardian.com/business/2012/sep/25/iceland-lydur-gudmundsson-fraud-charges|website = The Guardian|accessdate = 11 September 2015|first = Simon|last = Bowers| date=25 September 2012 }}
Between 2013 and 2015 the company simplified its structure, selling its South African operation and a 40% stake in its Italian business later in the year, along with other operations in Continental Europe.{{cite web|url=https://www.just-food.com/news/bakkavor-sells-stake-in-italian-asset_id126736.aspx|title=UK: Bakkavor sells stake in Italian asset|date=8 May 2014|publisher=Just Food|accessdate=2 March 2018}} The company acquired US prepared foods' manufacturer B. Robert's Foods in January 2015.{{cite web|url=https://www.bizjournals.com/charlotte/blog/outside_the_loop/2015/01/bakkavor-group-buys-b-robert-s-foods-of-charlotte.html|title=Bakkavor Group buys B. Robert's Foods of Charlotte|date=12 January 2015|publisher=Biz Journals|accessdate=2 March 2018}}
In January 2016, Bakk AL Holdings Limited, a company owned by Ágúst and Lýður Guðmundsson and funds managed by The Baupost Group, LLC, purchased shares in the company, taking its ownership to approximately 89% of the outstanding shares.{{cite news|title = Fresh owners for Bakkavör |url=https://www.thetimes.com/business-money/companies/article/fresh-owners-for-bakkavor-group-h7ckp879kzc|website = The Times|first = Deirdre|last = Hipwell}}
In April 2017, many supermarkets had to recall the company's hummus because of poor quality control.{{cite web|url=http://www.foodqualitynews.com/Regulation-and-safety/Chickpeas-suspected-source-of-hummus-taste-issues |title=Chickpeas suspected source of hummus taste issues|date= 27 April 2017|publisher=Food Quality|accessdate=2 March 2018}}
In November 2017 the company floated on the London Stock Exchange, in their initial public offering.{{cite web|url=https://www.telegraph.co.uk/business/2017/11/10/bakkavor-revives-ipo-one-week-shelving-due-market-volatility/|title=Bakkavor revives IPO one week after shelving it due to 'market volatility|date=10 November 2017|work=The Telegraph|accessdate=2 March 2018}}
Bakkvor acquired Blueberry Foods of Leicester, UK in 2019, a dessert manufacturer.{{Cite web |title=Bakkavor agrees to acquire Blueberry Foods in UK |url=https://www.foodprocessing-technology.com/news/bakkavor-blueberry-foods-uk/ |access-date=2023-03-14 |website=www.foodprocessing-technology.com}} In 2022, Ágúst Guðmundsson stepped down as CEO and appointed Mike Edwards as its successor.{{cite news|url=https://foodmanagement.today/bakkavor-group-ceo-and-co-founder-to-retire/|title=Bakkavor Group CEO and co-founder to retire |date=3 October 2022|newspaper=Food Management Today|access-date=14 March 2023}}
On 27 September 2024, more than 400 staff at the Bakkavor factory in Spalding, Lincolnshire went on a strike in a dispute over pay. Bakkavor said it had offered 7.8% pay rises to its lowest paid workers and 6.4% to other staff. It said about 35% of the workforce was on strike, with the remaining 800 continuing to work at the site as normal,{{Cite web |date=2024-10-16 |title=Unite leader Sharon Graham meets striking Bakkavor food factory workers |url=https://www.bbc.co.uk/news/articles/c869xql65d3o |access-date=2024-11-12 |website=BBC News |language=en-GB}} In November 2024, the Financial Times reported that the strike action was causing shortages of taramasalata in UK supermarkets,{{Cite news |last1=Speed |first1=Madeleine |last2=Onita |first2=Laura |date=2024-11-11 |title=UK shoppers hit by taramasalata shortage after strike |url=https://www.ft.com/content/8282bc09-5d60-4ac2-b6b2-a4c52d15c5fe |access-date=2024-11-12 |work=Financial Times}} and The Grocer reported that some chilled soups were out of stock.{{cite web |last1=Leonard-Bedwell |first1=Niamh |last2=Devlin |first2=Ed |title=Soup disappearing from supermarket shelves amid Bakkavor strike |url=https://www.thegrocer.co.uk/news/soup-disappearing-from-supermarket-shelves-amid-bakkavor-strike/697322.article |website=The Grocer |access-date=13 June 2025 |language=en |date=6 November 2024}}
Operations
The company produces a range of meals, salads, desserts, dips, sauces, sandwiches and pizza and bread products.{{cite web|url=https://www.lseg.com/markets-products-and-services/our-markets/london-stock-exchange/equities-markets/raising-equity-finance/market-open-ceremony/london-stock-exchange-welcomes-bakkavor-group-plc-main-market|title=London Stock Exchange welcomes Bakkavör Group plc to the main market|publisher=London Stock Exchange|accessdate=2 March 2018}} Bakkavor produces over 3,200 product categories to over 900 supplies in the UK, United States and China.
Bakkavor operates 23 factories in the UK, 9 in the United States and 5 in China.
References
{{reflist}}
External links
- [https://www.bakkavor.com Official site]
{{Authority control}}
{{FTSE 250 Index constituents}}
{{DEFAULTSORT:Bakkavor}}
Category:British companies established in 1986
Category:Convenience food companies
Category:Food and drink companies established in 1986
Category:Food manufacturers based in London
Category:Seafood companies of the United Kingdom
Category:1986 establishments in England
Category:Companies listed on the London Stock Exchange