Mark Fairweather, chief executive of Kingsmill owner Allied Bakeries, is to leave the business.
Fairweather, who has led the Allied Milling and Baking Group since 2008, is stepping down following the recent conclusion of a £210m UK-wide production and infrastructure investment by Allied.
Allied, which described the decision as a mutual agreement, said Fairweather’s successor would be announced in due course. It is understood Fairweather will leave this week and be replaced in the interim by Sarah Arrowsmith, chief executive of UK Grocery for the business, will also head the bakery division.
Fairweather is believed to be looking at new options both within Allied Bakeries’ parent company Associated British Foods and outside the business.
Kingsmill has been hit particularly hard by pressures on the wrapped bread market – with overall brand sales down 11.1% year-on-year to £371m [Nielsen 52w/e 4 January 2015].
Sales have been affected by the ongoing slump in the traditional sliced bread market, which has been exacerbated by intense pricing activity in the category. Some 800g Kingsmill loaves have selling for 79p at Asda since the summer.
The company has fought back with NPD, including the launch of the higher-fibre Kingsmill Great White loaf a year ago. Aimed particularly at shoppers who had shunned white bread over health concerns, it had brought in £25m in sales in nine months.
In a statement, Allied said: “Mark has - through a major investment programme to transform the business’ operational and supply chain footprint - significantly restructured the organisation’s cost base. During this period, the business also has seen significant investment in the brand enabling Kingsmill to deliver substantial innovation, bringing new products to the market and strengthening the brands position.
“Now that this operational investment programme has concluded, Mark will be stepping aside to enable a new leader to take the business forward.”
Arrowsmith added that Mark has seen through “an impressive transformation of the Allied Milling and Baking Group”.
“This is now well placed to meet the demands of the UK bakery market,” she said. “He has demonstrated great vision, tenacity and skill and moves on with our grateful thanks and our best wishes for his next venture.”
No comments yet