Real Good Food expands cake decorating business into US

Renshaw Americas has secured a five-year lease on a 18750 sq ft. warehousing facility in Rockaway, New Jersey, which the company said was an ideal 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.

In addition, the group said it has rebranded its Real Good Food Europe division as Renshaw Europe.

Chairman Pieter Totté 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."

At 0950 BST, the shares were up 1.4% to 37p.