Greggs, the food-on-the-go retailer, has entered into a lease agreement for a new state-of-the-art frozen production and logistics facility in Derby.
Greggs’ strategic growth plan, announced in 2021, set out ambitious expansion targets requiring investment in significant supply chain capacity. At 12 May 2024, Greggs had 2,500 shops trading and it expects to open between 140-160 net new shops during 2024. The longer-term target is to have significantly more than 3,000 shops trading in the UK.
The new facility is being developed at SmartParc SEGRO Derby on a high-tech food manufacturing site in Spondon, Derby. Greggs will occupy a 23-acre plot on the campus. Following the construction of the building by the landlord, Greggs will develop the facility and install state-of-the-art manufacturing and logistics equipment to optimise the efficiency of operations on site. The site is expected to open in late 2026 and create up to 600 jobs.
The new purpose-built facility will provide additional manufacturing capacity for products – including new savoury and sweet production lines – as well as logistics for frozen storage and fully automated robotic shop order picking and distribution solutions from Swisslog.
The facility will also have additional capacity to enable further investments to meet future category growth, innovation and development, including the capacity for at least five manufacturing platforms and the potential for new production lines to be commissioned to meet volume demand.
The site has been designed with a focus on sustainability including the use of an onsite shared Energy Centre (a centralised heating and cooling system that recycles heat from refrigeration plants across the estate), a rainwater harvesting system, PV panels, EV charging points and a secure bike storage to help reduce local emissions.
Roisin Currie, Chief Executive at Greggs, said: “We are delighted to announce our new state-of-the-art facility at SmartParc SEGRO Derby. This purpose-built site offers significant flexibility to add new capabilities and lines as our business evolves. This is a significant step in our supply chain investment and will provide much-needed manufacturing and logistics support to power our ambitious growth plans.”
Jackie Wild, CEO at SmartParc, said: “It is our ultimate vision that SmartParc SEGRO Derby becomes a hub for forward-thinking food businesses seeking sustainable and efficient operations, a collaborative work space and a first-class location with excellent connectivity, whilst also putting their people first. Greggs embodies this approach and we are immensely proud to welcome such a cherished food business to the site.”
