Lotus Bakeries plans to invest more than EUR150m (US$181.4m) in its US and Belgium plants over the next three years to cater to increased demand for its Biscoff brand of waffles.
The Belgium-headquartered business opened its first and only US factory – located in Mebane, North Carolina – in 2019 but appetite for the company’s Biscoff products has since exhausted manufacturing capacity. Lotus is planning to add a new production line under the three-year project.
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Meanwhile, at Lotus’ facility in Courcelles in Belgium, the company will add a new “manufacturing hall” – expected to come on-stream next year – amid an increase in demand in the company’s home market and France for its Waffles products.
The group is also set to make changes to its Natural Foods business unit. The Natural Foods division emanates from the company’s purchase of a majority stake in UK-based Natural Balance Foods in 2015, before Lotus increased its interest to almost 98%.
With that deal, Lotus inherited the snack bar brands Nakd and Trek, and the same year, it acquired another UK company Urban Fresh Foods, the owner of the Bear snacks brand. Lotus then went on to purchase Kiddylicious in 2018, a baby food company also located in the UK.
Lotus said it wants to “accelerate the growth” of its Natural Foods assets and, to do so, will “centralise all international activities, brands and global accounts” at a new headquarters for the unit in Switzerland, where the group already has a local subsidiary and purchasing arm. just-food has asked for further information on this move.
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By GlobalDataThe company, which is also present in spreads, ice cream and chocolate, made the expansion announcements in conjunction with the publication of its annual results late yesterday (8 February).
In the year to 31 December, turnover climbed 8.3% to EUR663.3m (up 9% excluding currency effects), with net profit up 8.9% at EUR82.6m.
EBIT rose 5.9% to EUR106.5m, while profit before tax increased 5.5% to EUR103.5m.
Lotus noted how sales of on-the-go snacks such as Nakd, Trek and Bear “fell sharply” following the Covid-related lockdowns in the UK last March, which affected foodservice outlets and other hospitality venues, while schools were closed and many people chose to work from home. However, demand picked up from July onwards.
The company also said its Biscoff brand entered new markets last year in Australia, Indonesia, Malaysia, the UAE, Morocco, Egypt, Turkey and Canada, with a “strong” uptake so far.
Last month, Lotus took a minority stake in US allergen-free biscuit maker Partake Foods through its FF2032 venture-capital fund launched in 2019. The fund has previously invested in UK-based sour dough crispbread maker Peter’s Yard, along with US business Love Brands, which owns the Love Corn line of snacks.
