Speaking exclusively, Totté revealed that the group will exclusively be targeting the niche sugar craft market as part of its investment.
The sugar craft market includes cake toppings and decorations, sugar pastes and icing and sauces and syrups.
A global online business comprised of a ‘web shop’ with a wide range of products, help-lines, educational information and workshops, will commence in September or October this year under the Renshaw business, Totté said.
“It’s a complete new business arm that will be dedicated to the sugar craft market,” he said. “We’re plugging into this market directly.”
“The sugar craft market is big and we cannot reach it just through retail, so we had to find another channel and do it ourselves,” he added.
“Initially this will be an online platform, but we will follow-up with bricks and mortar in the countries we see potential in later on,” the CEO said.
Consumers – a business U-turn
“Renshaw has always been business-to-business and this is a complete new departure for us,” Totté said, as the sugar craft sector is very consumer-focused.
However, while it is a new avenue for us, “we’ve invested a lot in our teams and I think we’re well up for it”, he added.
“The sugar craft market holds huge potential,” he said, with 10% growth each year and a 20% surge last year.
“I see a £100m business in this within the next three to four years and this will be driven by exports and global interest,” the CEO said.
The firm will target individual consumers as well as small businesses and the food service sector, Totté said, and it will have a global reach.
“The sugar craft market is a particular niche. Cooking has become hugely popular for many as a hobby and television has spurred this in many ways. It has grown tremendously popular and homebaking is a follow-on of this trend,” he detailed.
The US has the largest market potential, he explained, but the South African market has “incredibly interesting opportunity”.
While Asia will be a target for business, Totté said that China and India will not be a focus initially as “we want to establish strong business in the markets we are already present in first.”
As the group posted its annual results last week, Pieter Totté, executive chairman of Real Good Food Company (RGFC), said the Renshaw business was its bakery ‘gem’ and was ripe for investment.
