Cake plant to make 65m mince pies for Christmas

Inter Link Foods today said it expected to make more than 65 million mince pies in time for Christmas after installing one of the largest pie-making plants in Europe.

The company supplies every major multiple retailer with cakes, including chains such as Marks & Spencer and Tesco.

The company, based in Blackburn, England, celebrated its 10th anniversary this week, and made the projection as it reported a 15% increase in like-for-like sales in the last four months and unveiled a major board reshuffle.

It said production of mince pies at its bakery in Blackburn started last week following the opening of its new £2.6m (€3.8m) production line, which makes 22,000 cakes an hour.

Inter Link, which is the UK’s third largest cake maker, gained a significant foothold in the mince pie market when it acquired Kent-based family baker Hoppers at the start of the year.

Hoppers sold 36 million mince pies last Christmas and a significant increase in demand led Inter Link to build the new Lancashire plant.

Chairman Jeremy Hamer said: “It’s not so much that the country is eating more mince pies, but we as a company have a bigger share of the market.”

Inter Link, which also makes more than 73 million Bakewell tarts a year, employs 1,000 people at eight manufacturing sites.

Today, the company announced that chief executive Alwin Thompson is to become executive chairman, with managing director Paul Griffiths taking his place.

Amongst other changes, Inter Link is also appointing Chris Thompson as finance director from his current role at Co-op.

The changes came as the group reported a 31% hike in total sales and 15% increase in like-for-like sales in the four months to August 31.

Analyst Ingrid Bloom, at Investec Securities, said: “We believe these changes are positive developments and should place the company in a strong position for the future.”

Inter Link was formed 10 years ago to take over the loss-making business of Crossfield Foods in Blackburn.

It now has nine businesses – including malt loaf firm Soreen – and last year posted profits of £5m (€7.3m) on turnover of just under £70m (€102.4m).

Investec is forecasting pre-tax profits of £6.7m (€9.8m) for the current financial year.

Shares rose nearly 5% or 22p to 497.5p.