{{short description|Food company based in Britain}} {{Use dmy dates|date=February 2018}} {{Infobox company | name = Northern Foods Ltd. | logo = Nfoodslogo.PNG | type = Private | foundation = 1937 as Northern Dairies | location = Wakefield, England | key_people = Ranjit Singh Boparan | industry = Food | products = | revenue = £975.2 million (2009)<ref name=AR>{{cite web |url=http://www.northern-foods.co.uk/downloads/reports/2008-09/NF08-09-annual-report.pdf |title=Annual Report 2009 |access-date=21 March 2010 |archive-url=https://web.archive.org/web/20110927154036/http://www.northern-foods.co.uk/downloads/reports/2008-09/NF08-09-annual-report.pdf |archive-date=27 September 2011 |url-status=dead }}</ref> | operating_income = £52.7 million (2009)<ref name=AR/> | net_income = £2.5 million (2009)<ref name=AR/> | num_employees = 9,890 (2009)<ref name=AR/> | parent = Boparan Holdings | subsid = Gunstones bakery, Solway Foods, Fox's Biscuits, Green Isle Foods, Hollands Pies, Pennine Foods, Matthew Walker | homepage = | footnotes = }}
'''Northern Foods''' is a British food manufacturer headquartered in Wakefield, England.<ref>{{cite web|url=https://find-and-update.company-information.service.gov.uk/company/00471864|title=NORTHERN FOODS LIMITED - Overview |publisher= Companies House|access-date=7 October 2020}}</ref> It was formerly listed on the London Stock Exchange and was a constituent of the original FTSE 100 Index.<ref>{{cite news|url=http://stockmarketalmanac.co.uk/2015/02/ftse-100-index-original-share-constituents/|title=FTSE 100 Index original share constituents|date=2015-02-24|work=The UK Stock Market Almanac|access-date=2018-02-19}}</ref> The company is credited, together with Marks & Spencer, with creating the UK Chilled Food category.<ref name="encylcopedia" /> The driver of this growth was <!-- Not ennobled until 1998. -->Christopher Haskins, the son-in-law of the company's founder Alec Horsley. Haskins became a director in 1967, deputy chairman in 1974, and was chairman from 1980 to 2002. The company was delisted in 2011 when it was bought by the 2 Sisters company.<ref name="ft">{{cite news|url=https://www.ft.com/content/8a116262-2557-11e0-93ae-00144feab49a |title=Boparan wins Northern Foods with £341m bid|website=Ft.com}}</ref><ref name="insidermedia">{{cite web|url=http://www.insidermedia.com/insider/yorkshire/50684-boparan-becomes-northern-foods-chairman/ |title=Boparan becomes Northern Foods Chairman|website=Insidermedia.com}}</ref>
==History== === 20th century=== The business was founded by Alec Horsley in 1937 as a family-run dairy business based in Holme on Spalding Moor.<ref name="chistories">{{cite web|url=http://www.company-histories.com/Northern-Foods-plc-Company-History.html|title=Northern Foods plc -- Company History|website=Company-histories.com|access-date=9 February 2018}}</ref> During the war years, Horsley bought up many competing local dairies to become a major dairy force in the Humber region.<ref name="chistories" /> In 1942, the business was registered as Northern Dairies and became a public company in 1956. In 1958, Alec's son Nicholas Horsley joined the then Northern Dairies as a trainee manager, becoming a director in 1963. His first business success was to acquire cheaply, a stake in a small ice-cream company called Mr Whippy, which he sold on to Charles Forte for a high price two years later.
The dairy was generating large amounts of cash, as many dairies were at the time, due to the government backed guaranteed pricing created by the Milk Marketing Board, itself a legacy of post-war food shortages.<ref>{{cite web|url=https://ageconsearch.umn.edu/bitstream/6969/2/cp02fr01.pdf|title=Recent Changes in Milk Marketing in the UK: The Farmers' Perspective|last=Franks|first=G.R.|date=7 July 2002|access-date=13 February 2018}}</ref> That cash was used to fund diversification into foods. In 1972, Northern Dairies changed its name to Northern Foods.<ref name="encylcopedia">{{cite web|url=http://www.encyclopedia.com/social-sciences-and-law/economics-business-and-labor/businesses-and-occupations/northern-foods-plc|title=Northern Foods plc|website=Encyclopedia.com|access-date=9 February 2018}}</ref> Nick Horsley's brother-in-law, Christopher Haskins found himself on a plane next to Marks & Spencer (M&S) executive who was setting up a new store in Belfast. M&S began buying milk for the store from Northern Foods, followed by yoghurt deliveries and food, including the first fresh trifle for M&S.<ref name="cwatch">{{cite web|url=https://corporatewatch.org/northern-foods-plc-company-profile/|title=Northern Foods Plc Company Profile – Corporate Watch|website=corporatewatch.org|date=10 June 2015 |access-date=9 February 2018}}</ref> The contract developed into food sales to M&S that were eventually worth over half a billion pounds a year.<ref>{{cite news|title=Peston's People: Lord Chris Haskins|date=26 August 2001|work=Sunday Times}}</ref> Northern Foods also made some non-competing products for other retailers. Since then its strategy has been to buy up and consolidate M&S suppliers.<ref name="cwatch" />
In 1986, Northern Foods built Fenlands Food Factory in Grantham, for £8 million, dedicated entirely to M&S.<ref name="encylcopedia" /> At the time it was regarded as the most advanced food factory in Europe.<ref name="encylcopedia" />
Nick Horsley had successfully diversified the business, widening Northern Foods' portfolio into Marks & Spencer cakes (through Park Cakes), Smith's Flour Milling, brewing (with the purchase of Hull Brewery), Fox's Biscuits, Pork Farms and many other smaller firms. It was during this period that the company pioneered the market in chilled, prepared meals and sandwiches in supermarkets.
Nicholas Horsley took early retirement due to a rare genetic wasting disease, and by 1986, Haskins had become chairman of Northern Foods.<ref name="Guardian">{{cite news|url=https://www.theguardian.com/news/2004/jan/23/guardianobituaries.food |title=Obituary: Nicholas Horsley|work= The Guardian|date= 23 January 2004}}</ref> In November 1991, the company acquired Express Dairies from Grand Metropolitan.<ref>{{cite news|url=https://query.nytimes.com/gst/fullpage.html?res=9D0CE4DE123DF932A15752C1A967958260|archiveurl=https://web.archive.org/web/20121106145702/https://query.nytimes.com/gst/fullpage.html?res=9D0CE4DE123DF932A15752C1A967958260|archive-date=2012-11-06|title=Grand Met Sells Dairy Interests|newspaper=The New York Times|date=21 November 1991|access-date=1 August 2016}}</ref>
In 1994, the Milk Marketing Board was abolished and milk prices in supermarkets fell.<ref>{{cite news|url=https://www.vice.com/en/article/dairy-farmers-are-paying-the-true-price-for-the-uks-cheap-milk/|title=Dairy Farmers Are Paying the True Price for the UK's Cheap Milk|date=25 February 2015|work=Munchies|access-date=13 February 2018}}</ref> The loss of the high return on milk made a measurable impact on all dairy companies including Northern Foods. Northern Foods demerged Express Dairies in 1998 as the depressed margins were dragging the share price down of the overall group. Both businesses were listed to the FTSE 250.<ref>{{cite news|url=http://stockmarketalmanac.co.uk/2014/02/history-of-companies-joining-and-leaving-the-ftse-100-index-since-1984/|title=History of companies joining and leaving the FTSE 100 Index since 1984|date=24 February 2014|work=The UK Stock Market Almanac|access-date=13 February 2018}}</ref> Express Dairies was later bought by in a staged acquisition, finalised in 2003, by Arla Amba a Danish and Swedish co-operative.<ref>{{cite news|url=https://www.independent.co.uk/news/business/news/express-dairies-agrees-all-share-merger-with-rival-arla-foods-112723.html |archive-url=https://ghostarchive.org/archive/20220621/https://www.independent.co.uk/news/business/news/express-dairies-agrees-all-share-merger-with-rival-arla-foods-112723.html |archive-date=21 June 2022 |url-access=subscription |url-status=live|title=Express Dairies agrees all-share merger with rival Arla Foods|date=28 March 2003|newspaper=The Independent|access-date=13 February 2018}}</ref>
===21st century === Christopher Haskins stepped down as CEO in 2002 with Jo Stewart succeeding him. In March 2004, Patricia O'Driscol, who had previously worked for Tesco’s chilled business and Shell, was hired to replace Stewart.<ref>{{cite news|url=http://news.bbc.co.uk/1/hi/business/3079762.stm|title=Northern Foods boss quits|publisher=BBC News|date=4 September 2003|access-date=28 April 2008}}</ref>
In July 2004, M&S was subject to a takeover bid from Philip Green. This was rejected by M&S which, partly as a result of shareholder pressure, decided to be more transactional in its supplier relationships and started to take volume out of the Northern Foods factories to diversify its supply base.<ref>{{cite web|title=How M&S sent Green packing|url=https://www.theguardian.com/business/2000/feb/13/observerbusiness.marksspencer|website=Theguardian.co.uk|access-date=13 February 2018|date=13 February 2000}}</ref> Four profit warnings followed.<ref name="FTIMES">{{cite news|last1=Killgren|first1=Lucy|title=Northern Foods parts company with CEO|url=https://www.ft.com/content/fbd1a450-b1cc-11db-a79f-0000779e2340|newspaper=Financial Times|access-date=13 February 2018}}</ref>
In 2005, O'Driscoll embarked on a radical restructuring programme. In February 2006, she hired Stefan Barden, formerly CEO of Heinz UK&I, to support the restructuring as CEO designate. They completed the restructuring that year selling the dedicated chilled distribution (NFT), flour milling (Smiths), cakes (Park Cakes), speciality bread (Fletchers) and chilled pastry businesses (Pork Farms Bowyers) were also sold to a private equity group, Vision Capital.<ref>{{cite news|url=http://news.bbc.co.uk/1/hi/business/5032420.stm|title=Northern Foods unveils sell-off|publisher=BBC News|date=31 May 2006|access-date=28 April 2008}}</ref><ref name="binfo">{{cite web|title=Vision Capital realigns Northern Food purchases|url=http://www.bakeryinfo.co.uk/news/fullstory.php/aid/1429/Vision_Capital_realigns_Northern__Food_purchases.html|access-date=27 December 2010|website=Bakeryinfo.co.uk|date=26 January 2007}}</ref> Lastly, the Green Isle Boyle site and its Trafford Park Bakery were also closed with production either consolidated into other factories within its footprint or moved to other manufacturers such as Ginsters.<ref name=":4">{{cite news|url=http://news.bbc.co.uk/1/hi/business/5280762.stm|title=Northern Foods to shed 900 jobs|publisher=BBC News|date=24 August 2006|access-date=28 April 2008}}</ref> The restructuring complete, O’Driscoll stepped down and Barden took over as CEO in 2007.<ref name="FTIMES" /><ref>{{cite news|url=https://www.independent.co.uk/news/business/news/northern-foods-chief-executive-exits-434755.html |archive-url=https://ghostarchive.org/archive/20220621/https://www.independent.co.uk/news/business/news/northern-foods-chief-executive-exits-434755.html |archive-date=21 June 2022 |url-access=subscription |url-status=live|title=Northern Foods' chief executive exits|work=The Independent|date=2 February 2007|access-date=28 April 2008 | location=London | first=Susie | last=Mesure}}</ref> The next 16 quarters saw sales growth and margin expansion during a period of continued supply over capacity, volatile commodity prices and significant customer pricing pressure.<ref>{{cite web|title=Northern Foods Reports|url=http://quicktake.morningstar.com/stocknet/secdocuments.aspx?symbol=nfds&country=gbr|website=Morningstar.com|access-date=13 February 2018}}</ref>
Whereas trading was now performing well, a major issue for Northern Foods’ had become its large pension scheme, which since the 2008 financial crisis, had moved from being in surplus to having a sizeable £150m deficit.<ref>{{cite web|title=Northern Foods Annual Report 2010|url=http://quote.morningstar.com/stock-filing/Annual-Report/2010/4/3/t.aspx?t=:NFDS&ft=&d=23cae86129466b77d39da56affc75de1|website=Morningstar.com|access-date=13 February 2018}}</ref> A merger of equals with Greencore was proposed to help address this, but the pension fund preferred the protections given in an alternative offer by 2 Sisters PLC; which successfully consummated the acquisition in May 2011.<ref>{{cite web|url=http://www.just-food.com/analysis/in-the-spotlight-the-greencore-northern-foods-merger_id113251.aspx|title=In the spotlight - The Greencore, Northern Foods merger|website=Just-food.com|date=17 November 2010 |access-date=17 November 2010}}</ref><ref name="ft"/><ref name="insidermedia"/>
On 13 May 2011, the company was delisted from the London Stock Exchange. The Northern Foods factories continue to trade with the UK major supermarkets from within the 2 Sisters group.
On 11 September 2020, Northern Foods sold the Fox's Biscuits brand to Ferrero SpA, an Italian multinational specialized in the production of chocolate and snacks.<ref>{{cite web|url=https://notiziando.code.blog/2020/10/07/ferrero-acquisisce-i-biscotti-inglesi-fox/|title=Ferrero acquisisce i biscotti inglesi Fox|website=Notiziando.code.blog|date=7 October 2020|access-date=7 October 2020}}</ref>
==Owned properties== {{col-begin}} {{col-break}} * Bowyers * Baxters Food Group * Cavaghan & Gray Seafood * Dalepak Foods * Donegal Catch * Dorset Chilled Foods * Eden Vale * Elkes Biscuits * Emile Tissot {{col-break}}
* Ethnic Cuisine * Express Dairies * Fenland Foods * Fletchers, Grain D’Or and Kara Foods * Fox's Biscuits * George Payne & Co * Green Isle Food Groups {{col-break}}
* Gunstones Bakery * Holland's Pies * Kara Foods * Lacemont * Matthew Walker * NFT Distribution * Park Cakes * Pennine Foods {{col-break}}
* Pyewipe * R&K Wise * Rawmarsh Foods * Ski * Smiths Flour Mills * Solway Foods * Vanderheul {{col-end}}
===Former=== {{col-begin}} * Palethorpes {{col-end}} <ref name="cwatch" /><ref name="binfo" /><ref name="bbc">[http://news.bbc.co.uk/1/hi/england/humber/8069982.stm Northern Foods to close Hull site] BBC News, 27 May 2009</ref><ref>{{cite news|url=https://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/2790607/Closed-MandampS-food-plant-sparks-row.html |archive-url=https://archive.today/20130421124634/http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/2790607/Closed-MandampS-food-plant-sparks-row.html |url-status=dead |archive-date=21 April 2013 |title=Closed M&S food plant sparks row|work=The Telegraph|date=28 May 2008|access-date=5 October 2008 | location=London | first=James | last=Hall}}</ref><ref>{{cite news|url=http://news.bbc.co.uk/1/hi/wales/8636748.stm|title=Swansea ready meals firm to close|publisher=BBC|date=22 April 2010|access-date=22 April 2010}}</ref><ref>{{cite news|url=http://news.bbc.co.uk/1/hi/england/cumbria/4378065.stm|title=End of era for historic food firm|publisher=BBC News|date=24 March 2005|access-date=28 April 2008}}</ref>
==References== {{reflist}}
==External links== *[http://uk.finance.yahoo.com/q/pr?s=NFDS.L Yahoo profile] *[https://web.archive.org/web/20100224224627/http://www.northernfoods.com/our-company/history.htm History ]
{{Authority control}}
Category:Northern Foods Category:Food and drink companies established in 1937 Category:Companies formerly listed on the London Stock Exchange Category:Food manufacturers of the United Kingdom Category:1937 establishments in England