cake-decorations

Cake Decoration is a growing and global market with a spectrum of consumers from experts to beginners and a wide range of trade channels.

2020/2021 Performance

FY20/21 was due to be a transitional year for the Cake Decoration division, with a significant restructure taking place in FY20 and the benefits expected to be seen in FY21. However, with three lockdown periods in the financial year, significantly impacting sales and EBITDA versus FY20. The FY21 result for Cake Decoration showed revenue progress in new product launches and a new blue-chip customer, however this was overshadowed by the shortfall in the wholesale and manufacturing sectors, both of which saw their customers having to close during the lockdown period. The second half of the year saw total revenues increase by 3% versus FY20. This is significant because even though the UK sugarpaste market declined by 8.4%2, the UK sugarpaste revenues only declined by 6% and sales of sugarpaste in the second half of the year were up on the previous year by 12%. Renshaw’s performance outperformed the underlying market decline. Retail despite covid-19 saw revenues increase by 7% year on year. The investment in the soft icing plant has resulted in year-on-year improved revenues of 17%, and this is expected to continue to grow in FY22 as frostings and other soft icing products are becoming increasingly popular due to their ease of use for the novice baker and decorator.
Although still slightly behind, sales in the wholesale and manufacturing sectors had growing momentum in the final quarter. The International market is an important market for Cake Decoration; in FY20 we signed an exclusive agreement with the largest distributor of cake supplies in the US, Decopac, to help the Cake Decoration business grow market share in the US market. Despite covid-19, the revenues from Decopac increased by 25% year-on-year with further growth expected in FY22. Renshaw Europe recovered from the lockdown period with a good sales performance in the second half of the year. As part of the Cake Decoration strategy, Renshaw Europe appointed a distributor to service the smaller customers in Europe improving the customer service. During the year, further changes have been made to the overhead structure to reduce costs and focus on customer service. Renshaw remains a strong brand in the sector. Further work and efforts will continue throughout FY22 to refresh existing products, develop new products, bring new customers on board and streamline our sales and operational processes.

Forward Plans

The business continues to pursue a growth strategy focused on increased supply of everyday convenience products under its own and customers’ brands. The investment in the soft icings plant saw frostings grow year on year in FY21, and all indications including customer feedback suggest this is expected to continue in FY22. Export growth continues to be focused on North America where the company has identified the greatest potential to grow sales. Following the successful closure of the US based warehouse in FY21, with sales now being shipped directly from the factory in Liverpool to the US, this has streamlined the process and improved customer service.

The business continues to implement operational changes including the restructure of the engineering function to carry out planned maintenance outside of production hours and improvements to the factory planning system. These changes will result in a more streamlined business which is focused on growth opportunities, efficiency savings and an improvement in overall performance.

Cake Decoration includes the following businesses:

Renshaw manufacturers sugarpaste, marzipan, soft icings, mallows and caramels and sells across a broad range of sales channels: mainstream and specialist retail, wholesale, foodservice and food manufacturing as well as export.

Visit renshawbaking.com >

Rainbow Dust Colours produces a range of edible glitters, dusts, powders and food paints, brushes and pens for the specialist sugarcraft sector.

Visit rainbowdust.co.uk >

Renshaw Europe sells, markets and distributes both Renshaw and Rainbow Dust products across continental Europe.

Visit renshaweurope.com >
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