Longford’s Panelto Foods to reach new markets with exciting European merger

Longford’s Panelto Foods is poised for further significant growth following the exciting news that it is to join the European Bakery Group. 

Panelto Foods, which employs over 300 people, secured a new multi-million euro deal with Lidl, valued at €22 million in May, enabling them to showcase their breads on shelves in Ireland and across more than 950 Lidl stores in Great Britain and Northern Ireland. 

And this week, it was announced by 3i Group plc that the Longford bakery, which specialises in bake-off artisan breads, will merge with Dutch and German companies in the European Bakery Group. 

Brian O’Grady, CEO Panelto Foods, said, “We are delighted to be joining European Bakery Group. Together, we will be able to reach new markets, capitalise further on the growth opportunities within the UK, Ireland and Europe and benefit from the size and scale of the combined platform.”

The European Bakery Group was formed in May 2023 with the combination of Dutch Bakery, a leading bakery group specialised in home bake-off bread and snack products, and coolback, a leading German-based bakery group specialised in bake-off bread. 

Going forward Dutch Bakery, coolback and Panelto Foods will be key pillars of the European Bakery Group.

Panelto Foods has a leading position in the UK and Ireland across its key product categories of pre-packed thaw and display rolls, bake-off sandwich breads and rolls, bake-off loaves and baguettes. The company benefits from state-of-the-art production facilities and has long-term relationships with key retailers in its markets, driven by its high-quality products, product innovation and market-leading service levels.

Founded in 2004 and headquartered in Longford, Panelto Foods underwent a major expansion in 2018 with the support of Enterprise Ireland and the Irish Strategic Investment Fund. Panelto has grown into a key player in the UK and Ireland bake-off bread market and employs more than 300 people across two state-of-the-art bakeries.

Enterprise Ireland CEO, Leo Clancy, said, “Enterprise Ireland has worked closely with Panelto Foods to assist them with their ambitious growth plans and in making a significant contribution to the local economy in Longford, now employing over 300 people. We welcome Panelto’s entry to the European Bakery Group. Panelto has an established reputation for quality and service and this new development will see the company benefiting from the expanded reach of the new group. It’s a great fit for Panelto and will see the company continue to compete and win in very competitive markets and we look forward to continuing to support the company.”

The enlarged group will benefit from a complementary product assortment and customer base across Europe. 

The combination will enable European Bakery Group to capitalise on its capabilities to offer an innovative, high-quality and comprehensive product assortment to its customers, which is produced sustainably and with natural ingredients at its core.

Raoul Vorage, CEO European Bakery Group, said: “Panelto Foods is an excellent fit for European Bakery Group with complementary product assortments and geographies. We look forward to partnering with Panelto Foods and continue to execute on the international growth strategy of European Bakery Group.”

Bastiaan Peer, Partner 3i, said: “The combination of coolback, Dutch Bakery and Panelto Foods firmly establishes a high quality pan-European platform in the fragmented European private label market for bake-off bread, which has been at the core of our original investment thesis. With Panelto Foods, European Bakery Group further expands its footprint, diversifies its customer base, and further strengthens the platform for continued organic as well as inorganic growth.”

The transaction is subject to customary merger clearance.