Real Good Food announces that it has created a new 100% wholly owned subsidiary business, Renshaw US Inc.
OREANDA-NEWS. Real Good Food plc (AIM: RGD) today announces that it has created a new 100% wholly owned subsidiary business, Renshaw US Inc., which will trade as Renshaw Americas ("Renshaw Americas") to concentrate on further growing its cake decorating export business across the Americas. The Company also announces that it has rebranded its Real Good Food Europe division as Renshaw Europe ("Renshaw Europe").
Renshaw Americas has secured five year lease on a 18750 sq ft. state of the art warehousing facility in Rockaway, New Jersey. Rockaway has been chosen as it is an ideal logistical location for onward distribution and its close proximity to the port of Newark.
Renshaw Americas will initially employ a commercial team of four and will act as a sales and distribution hub to sell Cake Decorating products from the Real Good Food stable initially across the USA and Canada and eventually on a wider scale across the rest of the Americas.
Important products will include sugar paste, coverings and frostings from Renshaw in the UK and the full range of Rainbow Dust Colours products.
Commenting on the announcement Pieter Tott?, Executive Chairman Real Good Food said:
"The USA and Canada are very important markets for our Cake Decorating business. It already accounts for around 10% of our overall export sales and by establishing a permanent presence we believe there is scope for future growth and improved margins with operating efficiencies and better supply chain management. We can now ship in bulk quantity directly to a storage and distribution facility in an optimal location for onward distribution. This leads to manufacturing efficiencies in our factories in the UK and ultimately better customer service and improved margins."
"With an established presence we also see the opportunity to broaden our customer base and in particular we are excited about the growth opportunity for sugar paste, as opposed to soft icing, as this market is largely underdeveloped across the Americas."
In a separate move, Real Good Food has also rebranded its Real Good Food Europe division as Renshaw Europe, to reflect the business's focus on cake decoration products Renshaw Europe is based in Brussels and acts as a sales and marketing, distribution, and logistics centre for a range of products across Europe. The multi-lingual customer services and sales team will offer the full range of Renshaw and Rainbow Dust Colours products as part of a strategy to build these brands globally. It also intends to offer some innovative products tailored to local needs.
About Real Good Food plc
Real Good Food plc is a diversified food business serving a number of market sectors including retail, manufacturing, wholesale, foodservice and export. The Company focuses on three main markets: cake decoration (Renshaw, Rainbow Dust Colours), food ingredients (Garrett Ingredients and R&W Scott) and premium bakery (Haydens).