Why Site Consolidation Is Reshaping the UK Food Sector & How to Get It Right
The UK food manufacturing sector is undergoing one of its most significant transformations in decades. A wave of high-value mergers and acquisitions, mounting cost pressures, and a shortage of skilled engineers are reshaping the landscape in ways that demand both strategic foresight and operational discipline.
In the past year alone, Greencore’s £1.2 billion acquisition of Bakkavor has created a convenience food powerhouse with £4 billion in annual turnover and the promise of £70 million in efficiencies. Associated British Foods is in advanced talks to bring Hovis under the same roof as Kingsmill, potentially controlling almost 40 per cent of the packaged bread market. THG’s sale of its flavouring arm Claremont Ingredients for £103 million to Nactarome, Ferrero’s £2.4 billion purchase of WK Kellogg’s cereal business, and Mitsubishi’s £780 million expansion in salmon farming all underline the same point: the market is consolidating fast, and with every deal comes a reassessment of where and how production is carried out.
For the companies involved, the logic is compelling. Overlapping facilities and duplicated functions weigh heavily on margins, especially in an environment where energy prices, packaging costs and wage bills continue to climb. Bringing operations together under fewer roofs can deliver leaner processes, tighter quality control and more efficient use of scarce engineering talent. Yet while the financial rationale may be straightforward, the execution is anything but.
Consolidation is not simply a matter of closing one site and expanding another. It is a complex transformation project, touching every aspect of a business – from production flow and supply chain resilience to workforce deployment, automation, compliance and contingency planning. Get it wrong, and the benefits can evaporate quickly, replaced by logistical headaches, compliance risks and operational bottlenecks.
This is why master planning is not a luxury but a necessity. A strong plan looks beyond the immediate relocation to create a blueprint for long-term operational health. It considers how product lines will move through the facility, where automation and monitoring technology will have the greatest impact, how limited technical staff can be deployed most effectively, and what resilience measures – from backup power to flexible layouts – will keep the site running in the face of disruption.
For food manufacturers, the stakes are particularly high. Compliance requirements are stringent, the tolerance for downtime is low, and consumer expectations for quality and availability are unforgiving. Consolidating without a meticulous plan risks undermining the very efficiencies the move is meant to achieve.
The most successful consolidation projects are those where the operational detail is given the same attention as the financial modelling. That means surveying buildings and land to anticipate technical and environmental challenges. It means cataloguing assets accurately so they can be relocated, sold or repurposed with minimal disruption. It means managing decommissioning with health, safety and environmental compliance at the forefront, and preparing redundant sites for handover or remediation. It is a process that runs from early feasibility studies right through to the first day of production in the new configuration – and it demands experience not just in construction, but in the specialist operational requirements of the food sector.
The consolidation trend shows no signs of slowing. As M&A activity continues and cost pressures persist, the question for many manufacturers is no longer whether to consolidate, but how to do it in a way that enhances competitiveness rather than erodes it. In this environment, those who approach consolidation with a combination of commercial acumen and rigorous operational planning will emerge stronger, leaner and better positioned for the challenges ahead.
With more than four decades of delivering complex projects for the UK’s leading food manufacturers, Ambrey Baker has the specialist insight, engineering capability and master planning expertise to make consolidation a success. Our team understands the operational realities of food production, from high-care environments and compliance-critical workflows to the safe decommissioning and repurposing of existing facilities. We work with clients from the earliest planning stages through to handover, ensuring that every consolidation project is delivered on time, on budget, and with resilience built in for the future.
