Orchard Valley's labours bear fruit

Orchard Valley Foods, based at Burford on the edge of Tenbury Wells, was launched as a UK distributor for three European food manufacturers when it was set up in 2004.

Since then, the company has accelerated, selling confections and edible decorations all over the world, and is anticipating turnover in 2016 of around £26 million – it achieved sales of £16.5 million in 2014, which rocketed to £22.3 million in 2015, with pre-tax profit of £1.4 million.

Now it has opened a new warehouse in Leominster which will give the company, which employs between 70 and 90 people depending on the workload at any time of year, the capacity for further expansion.

The huge new centre was previously used for a similar purposes by another well-known food company – crisp maker Tyrrells.

Giving the company a 43,000 sq ft space which it will fill with 4,000 pallets of food at a time, it will allow the company to control its own distribution, having previously outsourced it to three buildings, including one in Telford.

Orchard Valley is now eyeing further growth over the next three years, and has the capacity to take on the extra work – but is not planning an aggressive battle with its competitors to chip away at the existing market.

"We haven't really stolen the business we have," said managing director Mike Forrester. "It's all new business that has grown in the market.

"We have worked really hard to bring successful new products to our customers."

Non-executive director Henry Roberts, whose own past has included roles with the like of Guinness owner Diageo, added: "We are using our strength, flexibility and can-do attitude to expand the market and that is reflected in our figures."

Orchard Valley sources and packs ingredients such as fudge and honeycomb pieces, ice cream decorations, hundreds and thousands, and caramelised milk powders which are used by a number of big name food companies.

The company packs 400 tonnes of mini marshmallows per year.

Blue chip food firms and well-known high street retailers source products through Orchard Valley, which also has a packing plant at its existing headquarters at Burford.

The move to the new premises has seen Orchard Valley agree a 10-year lease, and with the building already fitted out for adoption by a supplier to the food industry, has taken a relatively modest £50,000 investment to get off the ground.

Three more staff are being taken on to help the business grow into its new surroundings, which also include room for expansion depending on seasonal demand.

It is now coming into a busy time of year, with orders beginning to trickle in for Christmas, as well as what Mr Forrester calls the "baking time" – shortly after children go to school and parents have more time on their hands, as well as added interest generated from the BBC series The Great British Bake Off.

"It's actually lower cost, even though it's a bigger operation," Mr Forrester added. "It gives us security and traceability under our control, which is very important for us.

"We will run it like we run the existing business."